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At the close of its third quarter, 2018 is already the most-funded year ever for digital health startups. There has never been a better time to raise money, with founders securing larger and more frequent rounds. Yet numbers alone don’t tell the full story of the progress made in digital health thus far in 2018.
On the heels of the biggest year in venture funding, the digital health space is starting off 2018 with a bang: record Q1 funding of $1.62B, three $100M+ mega-deals, and a massive exit. Compared to last year, the commotion from policy debates has largely settled and a path to regulatory clarity has emerged. On our end, we’ve launched a couple of new sections within our funding post—check out our deep investor analysis as well as an update on the sometimes elusive, always critical quest of every digital health company: validation.
Last month, we released our whitepaper, Demystifying AI and Machine Learning in Healthcare. In this latest blog post, you’ll learn how venture funding gives us a glimpse into the AI/ML use cases taking hold now—and those areas that aren’t ripe yet. ICYMI: Our first post established a framework to understand the algorithms underpinning AI to allow stakeholders to more readily identify true breakthrough innovation.
2017 was a record year for digital health by many accounts: total funding far surpassed previous years, there were more investors participating in digital health deals, and we saw more mega deals of $100M+ than ever before. With the industry maturing and entering its “middle innings,” we significantly expanded our Digital Health Funding Database and the information we track on every venture deal and company.
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 83 deals this quarter were raised by companies led by women CEOs, up from 11% at the half-year mark.
When we started tracking deals in 2011, the newly enacted Affordable Care Act served as a major catalyst for market growth. We’ve only tracked digital health in an ACA-world, so we’ve been on the edge of our seats as the new administration vows to repeal this landmark reform.
The unit economics are far more challenging for on-demand healthcare versus other on-demand sectors.
As individuals become accustomed to being responsible for out-of-pocket healthcare expenses, digital health companies can take advantage of the trend towards consumerism to educate and empower patients to make smarter purchasing decisions.
The rundown of what, how, and why reform is shaping the $36B telemedicine market.
Digital health has an enormous opportunity to reduce hospital readmissions and keep costs down by extending care beyond the clinical setting and into a patient’s home.
Healthcare reform is fueling digital health funding. You’ve probably heard a variation or two of that statement so here’s a look at how and why healthcare reform has helped define the digital health landscape. In a series of posts, we’ll explore the legislative landscape, starting with this overview and then diving into telemedicine, at-home patient management, and healthcare consumer engagement over the next few weeks.