Digital Health VC Funding Continues Ascent | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

Digital Health VC Funding Continues Ascent

April 9, 2014
by Gabriel Perna
| Reprints

Funding in digital health continues to skyrocket, reaching new heights in Q1 of 2014, according to a new report from Rock Health, a company that provides funding and full-service support to start-up companies.

Rock Health reports that nearly $700M in funding poured into digital health companies in Q1 of 2014, which represents impressive 87 percent year-over-year growth from Q1 of 2013. The average deal in the first part of 2014 was worth $13.1 million, up from $10 million in 2013. The highest number of investments went into payer administration ($120 million), analytics and big data ($107 million), and telemedicine ($61 million).

The biggest deal went to MedHOK (Medical House of Knowlege), which provides a platform for care, quality, and compliance for payers and accountable care organizations (ACOs). In total, it got $77.5 million from Bain Capital Ventures.

The second biggest deal with to MindBody, which provides scheduling and analytics tools for alternative health and wellness providers ($50 million) and the third went to Health Catalyst, the St. Lake City company that provides data warehousing to various providers. Sarasota, Fla.-based Voalte got $36 million from Bedford Capital for its communication systems.

California was the big winner this quarter in terms of locations, with companies from there representing 32 percent of all funding in the quarter. It was followed by Florida and Massachusetts. 

In a recent interview, Paul Teitelbaum, managing director and medical device / healthcare IT mergers and acquisitions expert at Mesirow Financial, a Chicago-based investment banking firm, predicted that venture capital money in digital health will continue to rise in 2014.

Read the source article at Home « Rock Health

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



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).

Circulation, Buoy Health Collaborate on Integrated Platform for Patient Transportation

Boston-based startup Circulation Health, a ride-ordering exchange that coordinates medical transportation logistics using Lyft and other transportation partners, is partnering with Buoy Health, also based in Boston, to integrate their platforms to provide patients with an end-to-end healthcare experience.

HITRUST Provides NIST Cybersecurity Framework Certification

The Health Information Trust Alliance (HITRUST), security and privacy standards development and accreditation organization, announced this week a certification program for the National Institute of Standards and Technology's (NIST) Cybersecurity Framework (Framework).

Report: Interoperability in NHS England Faces Similar Barriers as U.S. Healthcare

Electronic patient record interoperability in NHS England is benefiting patient care, but interoperability efforts are facing barriers, including limited data sharing and cumbersome processes falling outside of the clinician workflow, according to a KLAS Research report.

Geisinger National Precision Health Hires Illumina Exec to Lead Business Development

Integrated health system Geisinger has hired a high-profile genetic counselor to head up business development for Geisinger National Precision Health, which was created to extend the Geisinger model on the national scene.

$30M VC Fund Launched to Spur Innovation in Cardiovascular Care

The American Heart Association, together with Philips and UPMC, has announced the launch of Cardeation Capital, a $30 million collaborative venture capital fund designed to spur healthcare innovation in heart disease and stroke care.