Digital health funding last year hit $5.8 billion, and while that's lower than the $7 billion raised the year before, according to StartUp Health, 2015 was the year the industry hit its stride.
The year started off slow, with $1 billion raised in Q1, but the next two quarters ended up even with 2014, according to StartUp Health's year-in-review report.
By early July, StartUp reported that the digital health market was continuing to mature, with capital flow is remaining steady.
Last year, patient and consumer experience moved from fifth place to first as the sector of health IT that received the most funding, with $1.3 billion raised and an average deal size of $12.9 million.
Wellness and benefits funding was right behind at $1.22 billion, and workflow--which ranked No. 1 in 2014--followed that with $641 million.
The average deal size also grew by leaps and bounds--from $5.8 million in 2013 to $15.1 million in 2015.
IPOs in health IT also made their mark this year. There were six digital health companies that moved into the IPO space, including Evolent Health, Fitbit, Teladoc and others.
The authors of the report added that 2015 saw a significant shift toward validated innovation.
"Today's capital is supporting companies with proven leadership, strategy, business models and demonstrated outcomes," they concluded. "Although total funding is down from last year, there is more market impact per invested dollar than ever."
To learn more:
- here's the StartUp Health report