Digital health investments remained strong in 2016

Dive Brief:

  • All 10 of the top investors named in StartUp Health’s 2016 report maintained or increased the number of deals with which they were involved.
  • Large companies launching initiatives focused on the patient experience garnered the most funding.
  • Companies focused on patient engagement and behavior change also moved from Seed Rounds to Series A Rounds faster than those working in other subsectors.

Dive Insight:

Judging by StartUp Health’s 2016 report, digital health shows no signs of slowing down. With a growing group of “Health Transformers” such as Google and BlueCross BlueShield Venture Partners continuing or even increasing their investments, enthusiasm for digital health projects remains strong.

Investors were most generous when supporting companies that are addressing the patient experience—a persistent challenge in the healthcare industry—with nearly half of the largest deals falling into that category. Looking just at funds raised, patient experience again topped StartUp Health’s list with $2.8 billion raised and 163 deals. 

Wellness, personalized health, and medical devices were represented equally, and only one of the top 10 deals supported big data/analytics.

The 21st Century Cures Act is also boosting digital health as it states that the FDA will not regulate many categories of software. Combined with Americans' growing interest in digital interactions with physicians and electronic access to key medical information, the digital health field is positioned for growth fueled by innovation, investments, and partnerships.

Filed Under: Health IT
Top image credit: American Well