Digital Health Funding Down by About 35% in Q1 2015, Report Finds
April 27, 2015 in News
While overall digital health funding declined in the first quarter of 2015, mobile health companies were an exception, raising about $282 million, according to a report by Mercom Capital Group, mHealth Intelligence reports.
According to the report, digital health funding as a whole decreased by about 35% in Q1 2015, from $1.2 billion across 134 deals in Q4 2014 to $784 million across 142 deals.
However, while digital health funding “fell across the board,” mobile health was “the bright spot” in Q1 2015, according to Mercom CEO and Co-Founder Raj Prabhu.
For example, Prabhu said the mobile health sector saw “significant” merger and acquisition activity, with 10 transactions in Q1, compared with 21 in all of 2014. Of the $282 million in mobile health funding, about $220 million was raised by mobile health app developers, according to the report (Gruessner, mHealth Intelligence, 4/24).
Some of the largest mobile app funding deals included:
- Advance Health, which raised $40 million for its chronic care management and in-home risk assessment data capture apps;
- ClassPass, which raised $40 million for its mobile fitness and wellness membership app; and
- Clinical Ink, which raised $20 million for its clinical trial mobile data capture apps (Baum, MedCity News, 4/23).
Meanwhile, the report found that:
- Telehealth companies raised $65 million in Q1 2015 (mHealth Intelligence, 4/24);
- Wearable sensor companies raised $42 million across nine deals; and
- Mobile wireless technology companies raised $21 million across 12 deals (MedCity News, 4/23).