H1 2021 Digital Health Funding: Another Blockbuster Year…In Six Months

"H1 2021 secured $14.7B in digital health funding, already surpassing all of 2020’s funding. The half closed with 372 deals and an average deal size of $39.6M, spearheaded by 48 mega deals which accounted for 59% of total H1 2021 funding. Public exit activity ballooned with 11 closed IPOs and SPACs, with another 11 SPACs expected to close in 2021.

It’s been quite a ride this past year watching digital health catapult from a niche sector to a mainstream market. Seismic shifts from the COVID-19 pandemic launched digital health into high gear, and the momentum has only accelerated. The first half of 2021 closed with $14.7B invested across 372 US digital health deals with a $39.6M average deal size. Fifty-nine percent of that funding came from 48 mega deals ($100M+), including one of the largest single rounds of investment in digital health history: Noom’s $540M Series F round.

Even at its six-month mark, 2021 already surpassed 2020’s overall funding record.1 Monthly funding in June 2021 ($3.1B) was almost triple that of June 2020 ($1.1B), when digital health funding numbers began to accelerate after the first COVID-19 shutdowns.

Digital health excitement isn’t limited to the private market, as public market investors, companies seeking acquisition targets, and special purpose acquisition company (SPAC) trusts are all looking to get in on the action. While seven digital health companies exited to the public markets in 2020, we’ve already seen 11 exits in the first half of 2021, with at least 11 more expected to close this year. M&A activity is heating up too: in H1 2021, each month saw an average of 22 acquisitions of digital health companies, compared to last year’s monthly average of 12..." Lire la suite