Dive Brief:
- Digital health venture funding for the first six months of this year hit $2.3 billion across 143 companies, exceeding the total amount raised in 2013, according to a new report.
- The report, which came from healthcare venture capital firm Rock Health, noted that payer administration saw the largest growth in funding, up 354% from $47 million in 2013 to $211 million during the first six months of 2014 alone.
- Rock Health also noted that the average deal size expanded from $10 million per deal in 2013 to $15.6 million per deal during the first half of this year.
Dive Insight:
Though other types of digital health technology are getting lots of attention, particularly mobile health, it's notable that the firms snagging the biggest investments deal in traditional IT. The top three digital health deals funded during the first half of 2014 included $135 million for NantHealth's interoperability and health IT platform; a $130 million series B round for data analytics and software firm Flatiron; and $125 million for Alignment Healthcare, a population health venture.
On the other hand, it's also notable that digital medical device companies raised $206 million during the first half of 2014, and healthcare consumer engagement firms raised $193 million. Look up in a year or two, and it's likely that these categories, and possibly mobile health technology—if it can be integrated with EMRs, particularly—will muscle their way to the top of the digital health investment chart.