Digital Health Venture Funding Topped $4.3B in 2015 | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

Digital Health Venture Funding Topped $4.3B in 2015

December 15, 2015
by Heather Landi
| Reprints
Click To View Gallery

Venture funding for digital health this year has kept pace with 2014, hitting $4.3 billion by Dec. 8, according to venture fund Rock Health.

There were 279 total deals in digital health this year, which is less than 2014’s 294 deals, yet the average deal size was higher in 2015 at $15.6 million compared to 2014’s average deal size of $14.7 million, according to Rock Health's year-end review.

“This is consistent with expectations given the increased number of later stage deals as the industry continues to mature,” Rock Health stated in the review.

According to Rock Health, 2014 was a record-breaking year for digital health funding as it reached $4.3 billion, doubling in size from 2013’s $2 billion.

“While skeptics may use the flatness of growth to question the attractiveness of the digital health industry, it’s important to keep in perspective what an incredible feat it was for 2015 to be on track with record-breaking 2014,” Rock Health stated.

Digital health continues to receive strong investor attention, accounting for 7 percent of total venture funding, and late stage deals account for just over 25 percent of all deal volume.

M&A activity nearly doubled in volume with 180 deals and $6 billion in disclosed activity.

“Perhaps the largest theme of 2015 was an increased focus on the consumerization of healthcare. The healthcare consumer engagement and personal health tools and tracking categories alone account for 23 percent of overall funding. As we look to 2016, we are optimistic and excited about the growing role of the consumer and the consequent B2C opportunities,” Rock Health stated.

NantHealth closed the largest deal of the year with $200 million in new funding, bringing its total amount raised to date to an impressive $680 million.

Two of the six largest deals were won by consumer-driven genetic companies, 23andMe and Helix. “With genetic services adoption only at 7 percent this year, investors are betting big that there will be continued growth and uptake by consumers to engage in their health via genetic products and services,” Rock Health stated.\

The top six categories accounted for 51 percent of all funding in 2015t and included healthcare consumer engagement, wearables and biosensors, personal health tools and tracking, payer administration, telemedicine, and care coordination. Payer administration joined the top six for the very first time this year, and personal health tools and tracking and care coordination joined for the first time since 2012.

Rock Health also noted that a record number of women CEOs receive funding in 2015 as the number of women-led companies that received funding doubled from 2014.

“Of the companies funded in 2015, over 10 percent had a woman CEO,” Rock Health stated, and notable companies led by women include 23andMe, Vitals,, Progyny, AssurexHealth and ClassPass.

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



ONC Roundup: Senior Leadership Changes Spark Questions

The Office of the National Coordinator for Health IT (ONC) has continued to experience changes within its upper leadership, leading some folks to again ponder what the health IT agency’s role will be moving forward.

Media Report: Walmart Hires Former Humana Executive to Run Health Unit

Reigniting speculation that Walmart and insurer Humana are exploring ways to forge a closer partnership, Walmart Inc. has hired a Humana veteran to run its health care business, according to a report from Bloomberg.

Value-Based Care Shift Has Halted, Study Finds

A new study of 451 physicians and health plan executives suggests that progress toward value-based care has stalled. In fact, it may have even taken a step backward over the past year, the research revealed.

Study: EHRs Tied with Lower Hospital Mortality, But Only After Systems Have Matured

Over the past decade, there has been significant national investment in electronic health record (EHR) systems at U.S. hospitals, which was expected to result in improved quality and efficiency of care. However, evidence linking EHR adoption to better care is mixed, according to medical researchers.

Nursing Notes Can Help Predict ICU Survival, Study Finds

Researchers at the University of Waterloo in Ontario have found that sentiments in healthcare providers’ nursing notes can be good indicators of whether intensive care unit (ICU) patients will survive.

Health Catalyst Completes Acquisition of HIE Technology Company Medicity

Salt Lake City-based Health Catalyst, a data analytics company, has completed its acquisition of Medicity, a developer of health information exchange (HIE) technology, and the deal adds data exchange capabilities to Health Catalyst’s data, analytics and decision support solutions.