A Digi-Health Explosion

As venture capitalists we’re always looking ahead, investing in technologies and companies that will grow based on market trends and predictions.  We take a look back at 2012 – What sub-sectors are healthcare venture capitalists placing their bets?

Rock Health, the nonprofit foundation focused on the intersection of healthcare and technology, recently issued their 2012 year end digital health funding report, detailing investment in the growing digital health industry.

We’ll focus on three data points from the Report:

Venture capital investment in digital health companies in 2012 has increased in the number of companies funded and capital invested.

Four sub-sectors of the health industry emerged in 2012, demonstrating the need by large health companies to have startups be the drivers of innovation in healthcare.

Personal health tools and tracking:  Tracking individual health with products and tools

Health consumer engagement:  Helping consumers with healthcare purchases

Electronic Medical Records (EMR) / Electronic Health Records (EHR):  Capturing clinical information

Hospital Administration:  Managing the business of a hospital

It’s no surprise that most of the digital health companies receiving venture capital investment are located in Silicon Valley and Boston.  However, there are a significant number of these startups located in the Midwest and South attracting venture dollars in 2012.

Source: RockHealth

Check back next week when we’ll take a look at the 2012 MoneyTree Report.  We’ll take a look at total venture investment in the U.S. by industry, geography and company stage of development!