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October 1, 2013

Digital Health Funding Update: Q3 2013

Funding on the rise, no surprise

It’s a record year, and we’re only through three quarters. Venture funding in digital health continues to increase, with $1.5B flowing into digital health in 2013 so far. Digital health funding is up 37% relative to Q3 2012 on a total of 145 deals since January 1st.

Q3 2013 Funding by Quarter_Post

Big ones

The biggest deals of Q3 include:

  • Evolent Health ($100M) provides technology and tools to ease the transition to value-based care

  • Practice Fusion ($70M) is a free, web-based electronic health record service for providers

  • FitBit ($43M) is a personal motion sensor that tracks your physical activity

  • Withings ($30M) creates connected health objects including a connected body scale and blood pressure monitor

  • Ayasdi ($30M) uses big data to uncover more targeted treatments for disease

  • ZeOmega ($21.5M) Provides a population health management platform for payers, providers and value-based care organizations

  • Audax Health ($20M) is a gaming / rewards platform that helps consumers make healthy living decisions

West vs. East

California remains the most fertile ground for digital health entrepreneurs, with more than four times as many deals in 2013 as the next state.

CA          48

MA          11

NY           8

TX           6

FL          5

PA          5

DC          5

CO          5

IL            4

AZ          4

Indie a-go-go

This year, we started tracking crowdfunding of digital health campaigns on Indiegogo, Kickstarter, Medstartr, and Fundable. There were 34 digital health crowdfunding campaigns that closed in Q3, raising a total of $2.1M.

The most successful campaigns of Q3 included:

  • Scanadu raised $1.7M on Indiegogo for a medical tricorder

  • Sensoria Fitness raised $115K on Indiegogo for its sensor-filled socks

  • Galvanic raised a little over $100K on Kickstarter for its galvanic skin response biosensor, PIP

The Scanadu campaign, which began in Q2 and closed in Q3 was responsible for more than 80% of the dollars in the quarter. Crowdfunding for digital health resembles a hits business, with 85% of the campaigns that closed in Q3 failing to raise even $20,000.

Record year? Predicted in Q1, settled in Q3.

 Q3 2013 Funding YoY Post

Get the data