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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