A new report from Mercom Capital Group indicates that venture capital funding for digital healthcare and information technology has fallen off dramatically since last year. In the first quarter of 2015, nearly half a billion dollars less was invested than in the third quarter of 2014. The bright spot was mobile health (mHealth), which garnered more than a third of the total funding and was the only segment to see growth as all others declined.
The vast majority of the $282 million in new investments went to fund mobile apps, with 35 deals totaling $220 million. Care-focused apps earned the most support, covering a range of illnesses and conditions including diabetes, heart disease, and Parkinson’s. Apps for fitness, wellness, and nutrition received a smaller share.
Wearable Health Tech devices attracted $42 million in investments, spread over nine deals. These included companies with continuous glucose monitoring systems for patients with diabetes, as well as a wireless device that monitors vital signs remotely.
While healthcare IT investments may be down, interest and support for wearable Health Tech devices and related mHealth systems still are attractive to major investors.
