Digital Health Funding to Nearly Double in 2014 With $5B Invested YTD, Reports StartUp Health
2014 is shaping up to be another record year for digital health, with $5 billion invested year to date, according to a new report from StartUp Health. The global growth platform for entrepreneurs transforming healthcare today released its quarterly funding report, StartUp Health Insights: Digital Health Funding Rankings Q3 2014, and said capital in the sector is on track to nearly double year-over-year. Download the full report for free at http://www.startuphealth.com/Q3.
“We are living in an extraordinary moment in history where big data, sensors, genetics, connected mobile devices are making it possible for entrepreneurs to reimagine what’s possible in healthcare,” said Unity Stoakes, President and Co-founder of StartUp Health. “Investors ranging from angels and VCs to corporate venture and private equity are starting to bet big on digital health, which is a trend we expect to expand globally over the coming years.”
- Funding in the first three quarters of the year has already skyrocketed past the total invested in 2013 ($5B in 2014 YTD vs. $2.8B in 2013). Deal volume is lower (347 in 2014 YTD vs. 533 in 2013), as more capital is invested in fewer startups.
- Funding in the third quarter of 2014 nearly doubled over the same period last year, from $946M to $1.7B. 111 deals closed in Q3 2014, compared with 156 closed in Q3 2013.
- Investment deal sizes continue to climb as the market matures and more private equity firms and strategic investors pour capital into the sector.
- The Top 10 largest deals YTD include Privia Health, Preventice, Proteus Digital Health, NantHealth and Flatiron Health.
- The Top 10 most active subsectors YTD include big data/analytics, navigating the care system, practice management, sensors/diagnostics and patient engagement.
- The Top 10 most active metro areas YTD include the San Francisco Bay Area, New York City, Washington, DC, Los Angeles and Minneapolis.
- The Top 14 most active investors YTD include Founders Fund, Khosla Ventures, Sequoia Capital and Venrock, each with six investments in the sector.
- Even though summer activity tends to be slow in dealflow, Q3 saw 15 acquisitions by companies including Google, Practice Fusion, Cerner and WebMD/Medspace.
For more digital health insights, please download the full report for free at http://www.startuphealth.com/Q3.
About StartUp Health
StartUp Health is a global growth platform for entrepreneurs transforming healthcare. StartUp Health’s long-term coaching program and trusted peer network include 165 entrepreneurs from 84 companies in 7 countries and 47 cities. StartUp Health’s full-time team of entrepreneur coaches helps increase the equity value of its companies by providing structured programming and access to investors, customers and advisors from the StartUp Health Network, for every stage of a company’s lifecycle. StartUp Health companies have cumulatively raised over $155M and to date, three have been acquired – Basis Science by Intel, Avado by WebMD and Arpeggi by Gene by Gene. StartUp Health was founded by health tech entrepreneurs, Steven Krein and Unity Stoakes, and is chaired by former Time Warner Chairman and CEO, Jerry Levin. Investors include Mark Cuban, Esther Dyson, Roger Ehrenberg, Brad Feld, Richard Forman, Jason Finger, Linda Holliday, Jon Kaplan, Howard Krein, MD, PhD, Jon Miller, Jeff Stewart and Wayne Kimmel. Learn more at startuphealth.com and follow @startuphealth.