Investors Pouring Billions into Digital Health Ventures

"The first half of 2021 saw 372 deals averaging $39.6 million, which is already more than the total value of the deals done in all of 2020.

With the COVID-19 pandemic pushing consumers into a new virtual healthcare reality, investors are pouring money into the digital health space like never before. Investment during the first half of the year already has topped the total for all of 2020.

More than $14.7 billion flowed into the digital health sector between January and June 2021, compared with $14.6 billion for the entire calendar year of 2020, according to a report by Rock Health, a venture fund that focuses on digital health. And 2020 was already at a record high for digital health investment. “I don’t think a lot of investors expected to double the pace of last year,” says Bill Evans, CEO and managing director of Rock Health.

In the first six months of 2021 there were 372 deals that averaged $39.6 million. In all of 2020, there were 460 deals, and the average size was $31.7 million, according to the Rock Health report.

Investment in digital health began about a decade ago, Evans says. Small startups with a limited amount of investment have grown to become “mature companies in a position to attract large, late-stage funding rounds,” he says..." Lire la suite