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Digital Health Funding Hit $5.8 Billion in 2015

January 5, 2016
by Heather Landi
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Digital health funding hits its stride in 2015, according to a report from StartUp Health, as total dollar funding reached $5.8 million, double that of 2013.

There were 477 deals in 2015, down from 2014’s 561 deals. And, digital health funding this past year dropped from 2014’s $7 billion, however, StartUp Health’s report states that there was more market impact per invested dollar in 2015.

“2015 saw a significant shift towards validated innovation. Today’s capital is supporting companies with proven leadership strategy, business models and demonstrated outcomes,” the report authors wrote.

StartUp Health noted that there has a shift from heavy investments in clinical B2B and B2B2C solutions to funding more focused on the consumer ecosystem. Enterprise solutions in workflow, population health and e-commerce

Within the digital health funding market, the patient / consumer experience sector continues to be a huge market force with increasing entrants and cash flow driven by the market focus on prevention and savings, as well as the relative ease of market entry, according to the report. Other markets receiving financial attention in 2015 include wellness/benefits, personalized health/quantified self, medical devices, big data/analytics, clinical decision support and research.

The top 10 deals of 2015 included the largest ever Series A deal with insurance company Oscar and the largest venture deal with Zenefits.

And the report notes that the digital health funding market continue to mature as mid-stage deal volume grows overall, accounting for 34 percent in 2015, up from 28 percent in 2014.



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