‘We’re living in a moment of total revolution in health care’
NEW YORK – Investors have poured more than $6 billion into digital health companies in the first half of this year with much more to come, according to a recent report by the health entrepreneur network StartUp Health.
“It’s becoming clear that we’re living in a moment of total revolution in health care due to a wave of innovation going on,” said Unity Stoakes, co-founder and president of StartUp Health.
The report cited more than 10 deals at more than $100 million in the first half of 2017, spanning sectors that include big data and analytics to patient education and wellness.
The report found the largest deal yet to be $914 million for early cancer detection startup Grail. It also reported that the most active metro markets for digital health funding were the San Francisco Bay area, New York and Boston.
The driving force behind all of this digital health investment? An industry-wide mission to deliver better care at a lower cost, said Karen Griffith Gryga, chief investment officer at Dreamit Ventures.
“All investment trails lead back to this statement,” she said. “Better care encompasses all forms of new technology to address specific disease states or conditions, as well as data analytics to enable population health and personalized medicine.”
The growth potential in digital health investments is huge, Griffith Gryga said, because the industry is just beginning to understand how to leverage patient-generated data and insights.
The convergence of three factors are creating massive opportunities for investors, Stoakes said: health reform that is disrupting the business model; the demand being created by patients with chronic diseases and an aging population that wants to stay at home; and a digital revolution in health care.
“Technology is making things more efficient and enabling us to bring health care into our homes and our every day lives,” he said. “We can leapfrog what’s already been done and create a new future for what’s possible in health care delivery.”