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.
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.
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.