Digital health investors plunked down $10.3B in 2020’s first three quarters
In spite of the troubles 2020 has brought to the healthcare economy, the first nine months of the year saw digital health companies break all previous records for attracting venture capital.
Total take over the “9M” period: $10.3 billion.
The 9-month observation comes from Mercom Capital Group, which is marketing an in-depth report on the specifics.
At the same time, the firm’s announcement of the report’s availability includes a number of details.
Among these:
- Funding activity was up by 43% during 9M 2020 compared to $7.2 billion raised in 9M 2019.
- Digital Health companies raised $4 billion in VC funding in 195 deals during Q3 2020 compared to $2.8 billion in 161 deals in Q2 2020, also a 43% increase quarter-over-quarter (QoQ).
- Year over year, VC funding was up by 100% compared to $2 billion in 155 deals in Q3 2019.
“Digital health, especially telehealth, has taken off amid COVID-19, and VC funding has already surpassed funding raised in any full year to date,” remarks Mercom CEO Raj Prabhu in the announcement. “There were five IPOs in digital health, which is unprecedented, and we also had one of the biggest M&A deals in digital health history in the third quarter.”
The top funded categories as of 2020’s 9M mark, according to Mercom:
- Telemedicine—$3.2 billion
- Data Analytics—$1.3 billion
- mHealth Apps—$970 million
- Wearable Sensors—$703 million,
- Clinical Decision Support—$660 million
- Healthcare Service Booking—$572 million
- Practice Management Solutions—$553 million
- Wellness—$523 million
Mercom says the report covers a total of 892 companies and investors.
Dave P. has worked in journalism, marketing and public relations for more than 30 years, frequently concentrating on hospitals, healthcare technology and Catholic communications. He has also specialized in fundraising communications, ghostwriting for CEOs of local, national and global charities, nonprofits and foundations.