AUSTIN, Texas – Global venture capital funding for digital health companies reached a record $4.9 billion in the first half of 2018, according to a recent report by Mercom Capital Group, a global communications and research firm.
The report found that VC funding for digital health companies was 22% higher year-over-year with 383 deals. During the same time period last year, funding reached $4 billion with 359 deals.
The unprecedented growth is not expected to slow down, according to Raj Prabhu, CEO and co-founder of Mercom Capital Group.
“We expect the record to continue and break 2017’s record of $7.2 billion in total VC funding,” he said.
Digital health companies have now received $30.6 billion with 3,833 deals since 2010, according to data tracked by Mercom.
The report found that the top funded areas in the first half of 2018 were: data analytics ($911 million); telemedicine ($701 million); clinical decision support ($582 million); mHealth apps ($535 million); wearables ($308 million); mobile wireless ($272 million); and wellness ($201 million).
The top VC deals in the first half 2018 were: $291 million raised by American Well; $240 million raised by Heartflow; $200 million raised by Helix; $200 million raised by SomaLogic; $146 million raised by PointClickCare; $110 million raised by Collective Health; $105 million raised by Livongo Health; $100 million raised by DXY; and $80 million raised by Tempus.
Prabhu said developments like the Centers for Medicare & Medicaid Services’ proposal for Medicare to pay for telehealth and the U.S. Food and Drug Administration’s approval of artificial intelligence-based apps show the space is maturing and getting the attention it deserves from regulators, with others following suit.
“Tech giants like Amazon, Google, Apple and others are also making serious inroads into the digital health space, making the sector more mainstream and validating the sector and investments,” he said.