Investment in digital health continues at a record-setting pace with no signs of slowing, according to a midyear report by StartUp Health.
The researchers found that the first half of 2016 has been the strongest on record, with $3.9 billion invested in 155 deals for seed and Series A rounds. The previous first-half record for early-stage investment was $3.5B in 2014. Total funding for 2015 was $5.8 billion.
Early-stage deals account for more than 65 percent of deal volume in the first half, with equal numbers of Series A and seed rounds. However, Series A rounds were vastly larger, indicating investors’ preference for validated ideas, according to the report. Those seeking seed rounds had to validate their concepts with a tighter hand on the purse strings.
The $500 billion deal for Chinese patient-scheduling app Ping An Good Doctor was the largest of the year so far. It was not included in the overall numbers, the reported noted. However, three of the top 10 deals this year so far have focused on tech-centered insurance.
The top five investment categories were patient/consumer experience at $958 million, wellness at $854 million, personalized health with $524 million, big data/analytics at $406 million and workflow at $328 million.
The report notes that an increasing number of genome-sequencing companies and medical device companies are attracting funding, and there also is growing interest in startups focusing on consumers ages 50 and older.
More than 7,600 startups around the world are working on digital health innovations, according to the report.
To learn more:
- here's the report