Funding in digital health increased 39 percent from 2012 and was up even higher from 2011, according to a new report from Rock Health, a company that provides funding and full-service support to startup companies.
Total funding in 2013 for digital health companies reached $1.97 billion, this compares to $1.4 billion in 2012, a 39 percent jump. The increase was 100 percent verse 2011. In total, there were 195 digital health deals above $2 million, demonstrating 38 percent annual growth and 135 percent growth verse 2011. Deal volume was up 38 percent verse 2012 and up 114 percent verse 2011.
According to the report, digital health outpaced other areas of healthcare funding, including funding in software, biotech, and medical device companies. The main themes of digital health were companies that dealt in electronic health record (EHR)/clinical workflow, analytics/big data, digital medical devices (such as clinically-oriented products with specific disease/condition focus), wearable and biosensing, population health management, and patient engagement.
The biggest deal was $100 million for Evolent Health, which provides population health management services. Next was for EHR vendor Practice Fusion $85 million and then it was OrthoSensor, a $48 million deal.
In terms of mergers and acquisition, the biggest deal was Vista Equity Partners, the owner of the Tampa -based electronic health record (EHR) and practice management software provider, Vitera Healthcare Solutions, bringing on Greenway Medical Technologies, a Carrollton, Ga.-based EHR software company.
Rock Health also tracked crowdfunding in digital health. In total, 120 crowdfunding campaigns raised $9.2 million. The majority were on Indiegogo, where there is a 40 percent success rate.