Investors Spend Record Amounts On Digital Health
By Katie Wike, contributing writer
In 2014, digital health saw a 125 percent increase in funding for a total of $6.5 billion.
A record $6.5 billion was invested in digital health in 2014, according to a recently released report from StartUp Health.
The top ten areas of investment, according to Fierce Health IT, were the following:
- Big Data/analytics ($1.5 billion)
- population health ($1.1 billion)
- healthcare system navigation ($975 million)
- diagnostics ($962 million)
- consumer health ($880 million)
- practice management ($783)
- payor/insurance ($699 million)
- workflows ($681 million)
- genomics ($632 million)
- clinical research ($624 million)
“Investments in digital health are having a positive impact and the momentum is likely to continue and cause changes throughout the entire healthcare ecosystem. In particular, the pharmaceutical industry is poised to take advantage of digital and mobile innovation allowing them to ‘go beyond the pill,’” says Jack Young, Head, Qualcomm Life Fund.
The report also identifies five trends to keep an eye on:
- healthcare reform spurs innovation - government incentives encourage investment in Big Data and population health
- aging populations and chronic diseases lead to consumerism - consumer health companies raised $880 million last year
- increased personalized medicine and clinical decision support - genomic companies raised $962 million for more personalized research
- convergence of technology in clinical settings - practice management tools, mobile, and wireless technology all increased in 2014
- innovation globalization - 7,500 plus startups around the world are developing new solutions in digital health
“The healthcare industry continues to be one of the biggest opportunities for entrepreneurs and investors. Over-employment declining productivity has plagued our healthcare system industry for decades, but today market forces are driving new incentives and paving the way for disruption. The walls are clearly coming down and we see increased demand across the healthcare ecosystem to address inefficiencies and focus on creating value,” says Bob Kocher, MD, Partner at Venrock.