2012: A Strong Year for Digital Health Funding | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

2012: A Strong Year for Digital Health Funding

January 9, 2013
by Gabriel Perna
| Reprints

It’s a good time to be a digital health startup.

According to a new report from startup accelerator firm, Rock Health, $1.4 billion was invested into venture capital for digital health companies in 2012, a 46 percent growth from the previous year. In addition, the report from Rock Health found there were 56 percent more deals in 2012 than the previous year.

Meanwhile, in traditional healthcare technology avenues, like biotech and medicals, funding was down as much as 16 percent from the previous year.

Of the money raised by healthcare startups, $237 million was invested into health consumer engagement tools and $150 million was invested in personal health tools and tracking. $108 million was invested into EMR/EHRs and $78 million was invested in hospital administration tools.

The five largest deals of the year represented 20 percent of the year’s funding. T.Rowe Price’s Redmile Group invested $100 million into Castlight Health, which enables employees to compare costs and quality of healthcare services. Google Ventures’ NEA invested $58 million into 23andme, which makes human genome searchable. Other investments were in Care.com, GoHealth, and Best Doctors.

Of those digital health companies expected to IPO, EHR/EMR software company from San Francisco Practice Fusion is among those listed along with ZocDoc (doctor review and ratings) and Castlight Health.

The Bay Area and Boston saw the most investments into digital health startups.

Get the latest information on Health IT and attend other valuable sessions at this two-day Summit providing healthcare leaders with educational content, insightful debate and dialogue on the future of healthcare and technology.

Learn More



Epic Wins Labor Dispute in Closely Divided Supreme Court Decision

Epic Systems Corporation won a major labor-law ruling in the Supreme Court on Monday, centering around the extent of corporations’ right to force employees to sign arbitration agreements, and with a 5-4 ruling in its favor

Survey: Two-Thirds of Physician Practices Seeking Out Value-Based Care Consulting Firms

Most physician organizations are not prepared for the move to value-based care, and 95 percent CIOs of group practices and large clinics state they do not have the information technology or staff in-house needed to transform value-based care end-to-end, according to a recent Black Book Market Research.

Cumberland Consulting Buys LinkEHR, Provider of Epic Help Desk Services

Cumberland Consulting Group, a healthcare consulting and services firm, has acquired LinkEHR, which provides remote application support, including Epic help desk services.

Population Health Tool that Provides City-Level Data Expands to 500 Cities

A data visualization tool that helps city officials understand the health status of their population, called the City Health Dashboard, has now expanded to 500 of the largest cities in the U.S., enabling local leaders to identify and take action around the most pressing health needs in their cities and communities.

Trump will Nominate Acting VA Secretary Wilkie for Permanent Position

Just a day after the Department of Veterans Affairs (VA) and Cerner inked their $10 billion EHR (electronic health record) deal, President Trump said he would be nominating Acting VA Secretary Robert Wilkie for the permanent position.

ONC Names API Server Showdown Stage 2 Winner

The Office of the National Coordinator for Health Information Technology (ONC) has named 1UpHealth as the Stage 2 winner of the “Secure API Server Showdown” challenge.