Digital Health Funding Surpasses $4.1B in 2014 | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

Digital Health Funding Surpasses $4.1B in 2014

January 5, 2015
by Rajiv Leventhal
| Reprints

Venture funding for digital health companies surpassed $4.1 billion in 2014, good for a 125 percent year-over-year growth, according to a new report from Rock Health, a San Francisco-based company that provides funding and full-service support to start-up companies.

The total funding nearly reached the combined total of all three prior years combined, according to the report. The top six categories that accounted for 44 percent of all digital health funding in 2014 were: analytics and big data, healthcare consumer engagement, digital medical devices, telemedicine, personalized medicine, and population health management.

Personalized medicine, defined as software used to support the practice of medicine customized to an individual’s genetics, slid into the top six for the very first time this year. This growth in funding could be attributable to the technological innovations in both genomics and data analysis in recent years, the report concluded. The other five categories continue to see strong funding as a result of the changing healthcare legislative and reimbursement environment.

What’s more, 295 deals closed with an average deal size of $14.1million.Throughout 2014, 95 mergers and acquisitions (M&A) deals were tracked, with disclosed transactions valuing over $20 billion. Large health tech companies continued to be the most active acquirers—but medical device, payers, and tech companies are making moves too. These industry players understand that the convergence of healthcare and technology will shape their business models and competitive landscape, the report concluded.

Beyond 2015, three categories experienced significant growth, according to the report. Telemedicine and digital therapies are redefining what is considered care and how it gets delivered. By leveraging technologies, both healthcare professionals and care treatments can be more widely distributed and accessible to those in need. Moreover, as healthcare reform continues to change the reimbursement environment, payer administration tools will become key to helping stakeholders navigate the healthcare system (and get paid), the report’s authors stated.

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

Topics

News

KLAS Research: Small Hospitals’ Buying Decisions Impacting EMR Market Share

A new KLAS Research report tracks shifts in electronic medical record (EMR) vendor market share among acute care hospitals, and finds that smaller hospitals are seeking technology solutions that meet their needs and limited budgets, and these contracts are making a mark on the EMR market.

Survey: Majority of Providers Predict Success for New Generic Drug Company, Project Rx

Back in January, four health systems, in consultation with the VA, announced a collaboration to develop a new, not-for-profit generic drug company. A survey has found that 90 percent of providers say they would become customers of the new venture.

Personalized Medicine Awareness Low Among U.S. Adults, Survey Finds

Genetics and personalized medicine are not top of mind for the general public in the U.S., according to a recent survey from GenomeWeb and the Personalized Medicine Coalition.

Industry Organizations Praise Senate Passage of VA Mission Act

The U.S. Senate on Wednesday passed, by a vote of 92-5, a major Veterans Affairs (VA) reform bill that includes health IT-related provisions to improve health data exchange between VA healthcare providers and community care providers.

NIH Issues Funding Announcement for All of Us Genomic Research Program

The National Institutes of Health’s (NIH) “All of Us” Research Program has issued a funding announcement for genome centers to generate genotype and whole genome sequence data from participants’ biosamples.

MGMA: Physician Compensation Data Illustrates Nationwide PCP Shortage

Primary care physicians’ compensation rose by more than 10 percent over the past five years, representing an increase which is nearly double that of specialty physicians’ compensation over the same period, according to the Medical Group Management Association (MGMA).