Digital health investments maintain steady pace in Q3, surpassing last year’s total

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Digital health funding hit $4.7 billion in 2017, leapfrogging last year's total.

Digital health investments have exceeded last year’s total by $100 million with a full quarter left to go.

Coming off a torrid first half of 2017 that saw unprecedented investment in digital health, third-quarter funding was slightly more modest, but it was enough to push past last record-setting totals in 2015.

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Third-quarter digital health investments reached $1.2 billion, bringing the 2017 total to $4.7 billion, according to Rock Health, which tracks U.S.-based deals that exceed $2 million. Total funding in 2016 reached $4.4 billion. In July, Rock Health Research Director Megan Zweig told FierceHealthcare she expects 2017 “to be a banner year.”

 Credit: Rock Health 
The number of deals in 2017 (268) is still behind last year’s total, but that figure is on pace to surpass the 320 deals reached in 2016. Like last quarter, consumer health information led the way with $798 million in funding. EHR and clinical workflow tools recorded 17 deals worth $334 million.
 
Notably, 16% of the companies that received funding in the third quarter were led by women in the CEO position. It was a slight bump from 11% in the first half of the year, but laudable given the recent press coming out of the tech industry at large highlighting sexual harassment and gender discrimination. 

StartUp Health, which tracks digital health investment globally, reported third-quarter investments had tapered off compared to last quarter. But with $2.5 billion invested worldwide, it was the strongest third quarter on record. It also pushed funding $2.6 billion ahead of last year’s numbers through three quarters, and nearly $1 billion more than 2016’s year-end total. 

Half of the deals tracked by StartUp Health have to do with personalized health and patient experience.  Average deals have jumped from $14 million in 2016 to $18 million in 2017 thus far.