Reports: Digital Health Funding Reached at Least $3B in 2014
October 3, 2014 in News
Digital health funding for the first three quarters of 2014 was between $3 billion and $5 billion, according to two separate reports compiled by Rock Health and StartUp Health, MobiHealthNews reports.
According to MobiHealthNews, Rock Health, which found the $3 billion figure, uses a more conservative definition of a digital health company than StartUp Health, which reported the $5 billion investment figure. In addition, Rock Health only includes funding rounds that are greater than $2 million in its report (Dolan, MobiHealthNews, 10/1).
Rock Health Report Findings
Overall, the Rock Health report found that venture funding slowed during Q3, raising $700 million, compared with $1.6 billion in Q2 of 2014.
The report showed that the most popular areas for investment so far in 2014 are:
- Big data and analytics, with $381 million;
- Digital medical devices, with $280 million; and
- Health care consumer engagement, with $238 million.
According to the report, the average deal size was $13.1 million, about 31% higher than those made in 2013 (Tahir, “Vital Signs,” Modern Healthcare, 10/1).
StartUp Health Report Findings
Meanwhile, the StartUp Health report found that Q3 2014 investing rose to $1.7 billion, compared with $946 million over the same period a year ago.
However, the report showed the total number of deals to close in Q3 declined from 156 in 2013 to 111 deals in 2014. Similar to the Rock Health report, StartUp Health found that big data and analytics were one of the most active investment areas (StartUp Health report, 10/1).