Research

Through our work at the forefront of digital health, we publish research on the trends shaping the future of healthcare. Browse our widely-cited digital health funding reports and special topics on the healthcare industry below—for full access, get in touch.

Reports

Special Topics

44% of respondents track some aspect of their health digitally

Digital Health Consumer Adoption Report 2019

Rock Health and the Stanford Center for Digital Health release their findings from the 2019 Consumer Adoption Survey. In 2019, overall consumer adoption of digital health leveled off near the 2018 high water mark. The five-year picture represented in our annual survey is one of a steady transition to a progressively more digital consumer healthcare experience.

Funding

$5.5B of venture capital invested in digital health startups in the year to date

Q3 2019: Digital health funding moderates after particularly strong first half

Though funding slowed from the $2B per quarter pace in the first half of the year, digital health companies raised $1.3B in venture capital in Q3 2019 for a total of $5.5B in the year to date. This puts the sector on track for the second largest funding year ever. As in 2018, large deals continue to drive the overall trend. In this market update we discuss public market performance of the five 2019 digital health IPOs (early results are mixed) and two hot areas of investment: behavioral health and women’s health.

Funding

$4.2B invested in digital health in the first half of 2019

2019 Midyear Digital Health Market Update: Exits are heating up

$4.2B was invested in digital health through the first half of 2019. The sector continues to experience healthy growth—we still don’t see the telltale signs of an investment bubble. Here we take stock of the capital invested in digital health startups since 2011—$29.4B of which is waiting on liquidity. We examine two avenues to return this capital: public offerings and acquisition by large non-healthcare companies.

Funding

$534M invested in the top ten digital health deals of Q1 2019

Patterns in capital concentration among digital health startups

We've reported record levels of funding for digital health in four of the past five years. Q1 2019 shows signs that funding is leveling off compared to 2018's record-smashing $8.1B total. Here we take a deeper look at patterns in capital concentration in digital health. We line up our analysis with insights from Michael Greeley, our good friend who explored the trend towards capital concentration in VC overall in his recent blog post.

Special Topics

Strategies and tactics for digital-savvy healthcare leaders

Building Pharma-Digital Therapeutic Alliances

Digital therapeutic and pharmaceutical companies are partnering to build, validate, and expand access to new, software-based solutions that improve patient outcomes. This is new territory with few precedents, and the strategies for building successful alliances remain uncertain. Drawing from numerous interviews with digital therapeutic, pharma, and health plan leaders, this research outlines how to overcome execution risks and build successful pharma-digital therapeutic alliances.

Funding

$986M invested in Q1 2019

Q1 2019: The end of the digital health IPO drought comes into sight

Coming off a record-smashing year for digital health funding in 2018, we see funding leveling off in the first quarter of 2019. Meanwhile, after a two-and-a-half-year drought, the digital health IPO market is heating up. Here’s the data and our take on how 2019 is shaking out so far for digital health.

 

89% of respondents used at least one digital health tool

Beyond Wellness For the Healthy: Digital Health Consumer Adoption 2018

Results from our fourth national consumer survey (2018 data) on digital health adoption and sentiments. Adoption continues to rise while consumers leverage digital health tools to address concrete health needs.

Funding

Seven $100M+ mega deals sent funding skyrocketing

2018 Funding Part 2: Seven more takeaways from digital health’s $8.1B year

In a banner year for digital health funding, AI/ML companies raced to the top in dollars raised, investors showed excitement about on-demand healthcare services, and more women CEOs closed rounds than ever before—though they still represent a small sliver of the pie.

Funding

More repeat investors than ever across digital health's $8.1B year

2018 Year End Funding Report: Is digital health in a bubble?

With a record $8.1B in funding and the absence of an equally robust exit market, there is more scrutiny on digital health than ever before. Will value creation track with recent investment trends? To provide some structure around this question, we validated a simple framework with fellow investors to assess the current “bubbliness” of digital health. Our verdict: digital health is not in a bubble.

Special Topics

Is technology what's missing from addiction treatment?

Going digital to disrupt the addiction epidemic

With America's addiction epidemic taking a devastating toll on lives and communities, technology-based startups are offering a new path forward. These solutions focus on providing evidence-based, continuous, and accessible experiences for individuals living with an addiction. To understand how digital offerings are driving real value to patients, we interviewed six startups.

Funding

$3.3B invested in Q3 2018 alone

Q3 2018: An entrepreneurs’ market leads to digital health’s biggest quarter yet

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.

Special Topics

Five key findings about the next generation of payers and providers

Next-generation payers and providers: Setting a strategy for tech-enabled innovation

To capitalize on the shift to value-based care and consumer demand for a better healthcare experience, a new type of business has emerged: next-generation payers and providers (“NGPPs”). Without the constraints of legacy payment models and operating systems, these companies were created to deliver a reimagined service to patients, prioritizing health and outcomes over utilization. We interviewed five NGPPs to understand their technology-supported strategies, with a focus on how they’ve partnered with startups and how they expect to keep pace with future innovation.

Diversity

Smaller companies are rated highest for supporting women leaders

What 600+ women told us about working in healthcare in 2018

Women are critical stakeholders in healthcare, serving as workers, caregivers, and consumers—yet they do not have an equal voice in the ranks of leadership. Our goal with this annual report is to contribute to a meaningful and actionable dialogue around women in leadership, with the hopes of providing a foundation for our industry to finally turn this dialogue into action.

Funding

Funding hits $3.4B across 193 deals

2018 Midyear Funding Review: Digital health déjà vu in yet another record breaking half

It’s déjà vu for digital health, with yet another record breaking half for venture funding. The continued upward trajectory from 2017 through the first half of 2018 is not a fluke. Instead, this sustained growth is indicative of the maturation one would expect from a stable, emerging investment sector (coupled with a strong overall venture ecosystem). Read on to learn our five key findings from this eventful half.

Funding

$1.6B and a massive exit in the first quarter of 2018

Q1 2018: Funding keeps climbing as digital health startups double down on validation

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.

Special Topics

121 AI/ML digital health companies have raised a total of $2.7B, with 206 deals from 2011 through 2017

The AI/ML use cases investors are betting on in healthcare

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.

Report

A guide for business leaders, innovators, and deal makers

Demystifying AI and Machine Learning in Healthcare

AI in healthcare feels inevitable: Optimists predict that artificial intelligence and machine learning (AI/ML) will diagnose disease better and earlier, treat illness more precisely, and engage patients more efficiently than today’s healthcare system does. On top of this, AI/ML is expected to streamline business operations and restore sanity (and humanity) to the clinician experience. To separate hype from reality, read our 50-page white paper, Demystifying AI and Machine Learning in Healthcare.

Funding

AI, machine learning, & deep learning were the must funded differentiating technologies in 2017

A new research tool for a new phase of digital health: the analyses we now support

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.

Funding

An all-time high $5.8B in digital health's most significant year yet

2017 Year End Funding Report: The end of the beginning of digital health

2017 was a record-smashing year for digital health, with venture funding approaching $6B and the most mega deals ($100M+) to date. It’s clear that the early game has concluded and digital health is entering the “middle innings” as an investment sector.

Diversity

Nearly half of women surveyed believe it will take 25+ years to achieve gender parity in the workplace

Women in Healthcare 2017: How does our industry stack up?

Women are critical stakeholders in healthcare, serving as workers, caregivers, and consumers—yet they do not have an equal voice in the ranks of leadership. Our goal with this report is to contribute to a meaningful and actionable dialogue around women in leadership, with the hopes of providing a foundation for our industry to finally turn this dialogue into action.

Funding

16% of companies funded in Q3 2017 are led by women CEOs

In digital health’s biggest year of funding, women CEOs emerge as Q3 2017 winners

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.

Special Topics

70% of digital health pilots converted to paying customers

Streamlining Enterprise Sales in Digital Health

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.

Funding

Four records shattered in digital health's $3.5B, 188 deal half-year

Digital Health Funding 2017 Midyear Review: A record breaking first half

As the digital health sector matures, investors are putting more money into more deals. In the first half of 2017, $3.5B was invested in 188 digital health companies, setting a record for number of companies funded and total amount invested.

Funding

71 deals and over $1B invested in digital health in Q1 2017

Q1 2017: Business as usual for digital health

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.

Funding

8% fewer dollars invested than in 2015

2016 Year End Funding Report: A reality check for digital health

2016 was a strong year for digital health, but it also created an environment for discretion and focus for founders and investors alike. There were a record number of companies funded; and while the total amount of dollars decreased from 2015, we remain optimistic in the strength of the sector and the value of the companies improving our healthcare system.

Special Topics

90% of consumers want to be in control of their genetic data

The Genomics Inflection Point: Implications for Healthcare

The genomics industry has tremendous potential to move the needle in health. Delivering on the promise of genomics depends on three main factors—many of which are within the purview of digital health. Through our survey of one thousand consumers, we provide novel data and insights regarding adoption, willingness to pay for specific use cases, and explore concerns around privacy and ownership.

Funding

A record-breaking 151 digital health companies raised over $2M

Digital Health Funding 2016 Midyear Review

After years of record-breaking venture funding, digital health finally hit its stride in a year when everyone expected funding to decline. In the first half of 2016, slightly over $2B filled company coffers–on track with both 2014 and 2015.

Special Topics

Will digital biomarkers help us better understand health and disease?

The Emerging Influence of Digital Biomarkers on Healthcare

In healthcare, big data is only valuable when paired with a strong body of clinical evidence. Digital biomarkers are an opportunity to translate new data sources into informative, actionable insights.

Funding

$4.5B in digital health funding in 2015

Digital Health Funding: 2015 Year in Review

2015 was another year of big numbers for digital health—the year closed out with over $4.5B in funding flooding into the space, a sizable increase in the number of later stage rounds, and 187 M&A deals.

Funding

50% of funding accounted by top six categories

Digital Health Funding 2015 Midyear Review

An in-depth look at the investors, companies, and trends that drove digital health funding in the first half of 2015.

Funding

125% year-over-year venture funding growth

Digital Health Funding: 2014 Year in Review

2014 was a record-breaking year. Digital health funding surpassed $4.1B, representing over 125% year-over-year growth.

 
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