Digital health funding in first three quarters of 2015 hits $3.3B
In the first three quarters of this year, funding hit $3.3 billion, and the top eight deals last quarter contributed to more than half of its transaction value.
For 2015, the average deal size was its largest so far with $15.8 million; however, there were fewer deals this year compared to 2014, according to Rock Health.
One of the reasons for such large growth may be an increase of initial public health offerings in the health IT segment, according to previous reports from both Rock Health and Mercom Capital Group.
"In the healthcare IT sector, companies raised more money through IPOs than venture capital this quarter," Raj Prabhu, CEO and co-founder of Mercom Capital Group, said about the second quarter. "Growth in public market financing is an encouraging sign for companies in this sector as it opens up another avenue for funding and an exit path for investors."
Rock Health notes that its venture funding data only includes disclosed U.S. deals of more than $2 million, making its numbers skew a bit lower than other forecasters.
Some of the categories that accounted for the most funding in the third quarter of 2015 include consumer engagement, wearables and biosensors, and personal health tools, according to Rock Health.
In addition, funding for digital health is making a large impact on the industry, according to a Brookings report released in September. "Digital health companies are no longer in their infancy but at already generating significant returns to both specialist investors and broader venture capital firms--signaling a sector that is moving from proof-of-concept to higher rates of expansion and implementation," the report's authors say.
To learn more:
- here's the Rock Health report
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