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.

Topics

News

Community Data Sharing: Eight Recommendations From San Diego

A learning guide focuses on San Diego’s experience in building a community health information exchange and the realities of embarking on a broad community collaboration to achieve better data sharing.

HealthlinkNY’s Galanis to Step Down as CEO

Christina Galanis, who has served as president and CEO of HealthlinkNY for the past 13 years, will leave her position at the end of the year.

Email-Related Cyber Attacks a Top Concern for Providers

U.S. healthcare providers overwhelmingly rank email as the top source of a potential data breach, according to new research from email and data security company Mimecast and conducted by HIMSS Analytics.

Former Health IT Head in San Diego County Charged with Defrauding Provider out of $800K

The ex-health IT director at North County Health Services, a San Diego County-based healthcare service provider, has been charged with spearheading fraudulent operations that cost the organization $800,000.

Allscripts Touts 1 Billion API Shares in 2017

Officials from Chicago-based health IT vendor Allscripts have attested that the company has reached a new milestone— one billion application programming interface (API) data exchange transactions in 2017.

Dignity Health, CHI Merging to Form New Catholic Health System

Catholic Health Initiatives (CHI), based in Englewood, Colorado, and San Francisco-based Dignity Health officially announced they are merging and have signed a definitive agreement to combine ministries and create a new, nonprofit Catholic health system.