2017 is already the largest year yet for digital health funding—but the funding spike of Q2 has steadied. Q3 funding came in at $1.2B, bringing the YTD total to $4.7B and pushing funding beyond the prior historic annual high of $4.6B in 2015. Of note: 16% of the 74 companies funded in the quarter are led by women CEOs, up from 11% at the half-year mark.
Podcast Ep. 7: In our recent survey, digital health companies divulged their enterprise sales pain points. This week we went even deeper, sitting down with two executives at the center of technology innovation at leading health systems to get their honest take on what hospitals want from digital health tools.
Rock Health is thrilled to announce our collaboration with AARP Foundation to launch the 2017 Aging in Place $50K Challenge. Competitors have the chance to earn a $50,000 cash prize and work with AARP Foundation to improve the lives of vulnerable seniors by reducing healthcare costs and hospital readmission rates.
For digital health startups, it’s increasingly a B2B world—and innovators are acutely feeling the challenges of enterprise sales. Selling to payers, providers, biopharma companies, and others is a tough game across the board. Sales cycles are long, requiring patience and a knack for relationship building. Finding the right buyer in a big organization can be disorienting. And crafting the pitch is tricky when talking to a complex, multi-faceted enterprise customer.
We noted in our midyear funding report that we’d be keeping a close eye on the FDA’s plan to set more definitive regulatory guidelines for digital health in the coming months. It turns out we didn’t have to wait too long—on July 27th, the FDA announced the Digital Health Innovation Action Plan, which includes the launch of the much-talked about Software Precertification Pilot Program (PreCert).
Q2 2017 was a record-shattering quarter, setting digital health on course for its biggest funding year ever. In the first half of 2017, more than $3.5B was invested in 188 digital health companies—including the two largest deals on record. We were surprised to see that amid one of the most uncertain periods in healthcare history, digital health investments saw their strongest quarter yet.