Digital health start-ups raised a record $3.1 billion in Q1; focus will likely evolve from providers to consumers and employers

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Dig­i­tal health firms raised record sums before Covid-19 hit (Med­C­i­ty News):

“Dig­i­tal Health star­tups raised a record-break­ing $3.1 bil­lion in the first quar­ter of 2020, accord­ing to a report released Mon­day by Rock Health. But now faced with a glob­al pan­dem­ic, the trend is unlike­ly to con­tin­ue…

Investors tend­ed to pre­fer high­er-val­ue, late-stage invest­ments, accord­ing to the report. The aver­age deal sized jumped from $19.5 mil­lion last year to $29 mil­lion, and near­ly a third of the deals were series C or lat­er … Inter­est­ing­ly, the major­i­ty of star­tups that raised fund­ing focused on health­care providers as their buy­er or end user. Fac­ing sub­stan­tial finan­cial hits from the Covid-19 pan­dem­ic, health sys­tems may become more dif­fi­cult to sell to in the future.

Of the deals that Rock Health tracked, 68 focused on the providers as the buy­er, while 41 were mar­ket­ed to con­sumers and 18 to employers.”

About Rock Health:

Rock Health is a ven­ture fund that invests exclu­sive­ly in dig­i­tal health. Port­fo­lio invest­ments include Oma­da Health, Col­lec­tive Health, Vir­ta, Doc­tor on Demand, Bench­ling, and oth­er soft­ware-dri­ven health­care solu­tions that low­er cost and improve out­comes to make health­care mas­sive­ly bet­ter for every human being.

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