Digital health continues to break funding records as companies around the world raised $ 8.1 billion in venture capital in the third quarter.
Investments in the second quarter have already hit a record high with digital health companies raised $ 7.7 billion as money pumped into the sector continues to pile up. According to data from Mercom Capital Group, a market research firm since 2010, it has set a record every quarter for the last year for venture capital funded into digital health startups over the past year.
VCs have poured $ 23 billion into digital health companies this year, up from all of 2020.
1. Telehealth: 2.5 dollars billion (up 74.1% year after year). Telehealth continues to lead the way in digital health financing. Although telehealth use has declined since the early phases of the COVID-19 pandemic, health officials still expect telehealth to stabilize at a faster rate than it did before the pandemic. The largest telemedicine deal this quarter was a $ 400 million Series D funding round brought in by Cityblock Health, an Alphabet subsidiary that provides services to low-income people through face-to-face and virtual care.
2. Data analytics: 1 dollar billion (up 143.2%). This subsector is the most funded among the broader category of software companies that help healthcare providers manage health data. The introduction of federal data exchange regulations designed to facilitate the exchange of information between healthcare organizations has spurred increased investment in this area. Deep Genomics, a company that uses artificial intelligence to better understand genetics, has spearheaded funding in this area with the C.
3. Mobile health Programs: USD 682 million (up 287.5%). Apps make up about half of the larger mobile health category, which also includes wearable sensors and mobile devices. This category has become popular as the pandemic has increased the demand for virtual assistance. Increasingly, employers looking to increase their benefits are using mobile health tools, which is also driving growth. Health and wellness app provider Palta attracted the largest round of funding in the quarter with its Series B.
4. Exercise control instruments: USD 585 million (up 82.8%). Many hospitals and healthcare systems are turning to digital tools to solve persistent workflow problems, such as burdensome clinical documentation, and turning to software designed to help clinicians with data collection and analysis. Olive, a process automation company that sells tools to automate payer and vendor workflows, generated the largest revenue in the subsector with a $ 400 million funding round.
5. Health Information exchanges: USD 520 million (up 26000%). Just two companies disclosed funding rounds in this subsector last quarter, but one mega-round, usually defined as a funding round of $ 100 million or more, was enough to lift it to fifth place. Commure, a software startup that sells a development platform to help vendors share data with each other, raised $ 500 million in a Series D funding round, the largest of all digital health companies to disclose their investments this quarter.