2014 digital funding tops $3B
Venture funding invested into the digital health sector has surpassed $3 billion through the first three quarters of 2014, which is a 100 percent increase over 2013, according to the latest report from Rock Health.
The average deal size, however, dropped by $2.5 million for the year to $13.1 million since midyear while the average deal is 31 percent larger than 2013. The San Francisco-based incubator does not include deals under $2 million in its calculations.
The top six funding trends were consistent in Q3, with analytics and big data outperforming all other categories, followed by digital medical devices, consumer engagement, payer administration, population health management and telemedicine
The top three deals this year, so far, are Proteus Digital Health which raised $52 million, followed by Teledoc at $50.3 million and Chunyu at $50 million.
Other big deals include Cognizant Technology Solution's $2.7 billion acquisition of TriZetto for $2.7 billion; and hospital system HCA's acquisition of PatientKeeper, a software provider and mobile apps developer geared toward physicians. Terms of the PatientKeeper deal were not disclosed.
California “continues to dominate” digital health funding, accounting for 37 percent of all funding year to date, while New York and Massachusetts together accounted for 20 percent.
“With $3 billion in digital health funds raised this year, we’re optimistic that 2014 will finish off strong and continue to provide new and existing digital health companies with capital to make an impact in healthcare,” the report concluded.
Editor
Editor Beth earned a bachelor’s degree in journalism and master’s in health communication. She has worked in hospital, academic and publishing settings over the past 20 years. Beth joined TriMed in 2005, as editor of CMIO and Clinical Innovation + Technology. When not covering all things related to health IT, she spends time with her husband and three children.