DigiHealth Growing…Slowly

Funding for digital health startups continue to be on the rise, but the growth is coming along at a slower pace, Rock Health reports in their mid-year report on the industry.  Here’s a historical look at investment in digital health companies:

  • In the first half of the year, startups in the field raised $849 million; a 12 percent increase over the same period last year, though at a slower pace — 2012 funding shot up 73 percent in the first six months of the year.

  • Within the industry, the biggest themes, accounting for nearly 50 percent of the funding tracked, are: remote patient monitoring, analytics and big data, hospital administration, and electronic health records.

Because the report looks only at date for three years, and digital health, as an industry is relatively young, it’s too early to say if this decline is signaling a broader investment trend. Still, even with the slower pace, the field is in better place than traditional lifesciences and venture capital industry on the whole. 1Q13 funding for medical devices dropped 29 percent and biotech funding declined two percent. According to the report, VC funding across all fields dropped six percent in the first quarter of this year.