Bright future ahead for digital startups
September 24, 2014 in Medical Technology
“A digital disruption is playing out in healthcare that will change social interactions, alter consumer expectations and, ultimately, improve health outcomes,” said Dipak Patel, managing director of Accenture’s patient access initiatives, in a press statement announcing the report.
“This momentum,” he added, “will be sustained if digital healthcare start-ups apply capabilities that create a seamless patient experience and result in both medical cost savings and improved outcomes.”
[See also: Consumers wild about wearables.]
That disruption, Accenture points out, has been facilitated by some serious venture capital so far. Just this past year, for instance, digital health startups received $2.8 billion in capital funding – a 31 percent growth rate since 2008. VC for these startups is expected to increase to $4.3 billion next year.
According to Rock Health’s 2014 digital health funding midyear report, capital funding for digital health startups grew a whopping 176 percent in the first half of 2014 compared to first half of 2013. This while the software segment grew only 123 percent, and the biotech segment a seemingly low 28 percent.
Accenture’s data highlights that, since 2008, the digital health segment that has received the lion’s share, or $2.9 billion, of capital is the infrastructure capabilities segment, which includes interoperability initiatives and data analytics.
Engagement solutions – such as wearable technology like Google Glass and FitBit – was pegged at $2.6 billion in startup funding since 2008.
[See also: Google Glass links to EHR.]