Venture capital Investment in digital health continues to grow as the industry matures. Rock Health published a midyear 2018 report on venture funding which found sustained growth that the group described as indicative of “a stable, emerging investment sector.” Digital health funding isn’t the only investment focus; the Rock Health research team found that venture funding in all investment sectors is growing faster than any time since 2006.
The Rock Health researchers presented five major takeaways from 2018 H1 venture funding activity:
- The deals are larger overall plus there were four mega deals funded with more than $100 million so far in 2018.
- Evidence-based product validation is increasing which draws investment.
- There are now more repeat investors in digital health than first-timers.
- Digital health company exits through acquisition are decreasing.
- Funding is increasing significantly for technology-driven behavioral health solutions.
Rock Health further reported that it expects venture funding to continue to grow for the remainder of 2018, particularly in total funding, the number of deals, and average deal size.
Digital health tech’s rapid growth in size and realized results appears make this a favorable time to seek investment funding. Wearable health tech, electronic health records (EHR), telemedicine, clinically validated evidence from multi-sensor devices, machine learning, and robotics aren’t just buzzwords, but tools and technologies that may offer companies new perspectives for furthering their original solutions and missions.
