SOURCE: 3BL Media, LLC
A new report from digital health accelerator Rock Health reports that digital health startups reported 45 percent more investment and 56 percent more deals in 2012, compared to 2011. The total capital invested grew from $968 million to $1.4 billion. 134 digital health companies raised $2 million or more, with four areas representing over one-third of the total investment. Personal health tools and health tracking saw $143 million, while consumer engagement gained $237 million, emergency medical records saw $108 million and hospital administration found $78 million. The report also finds that over half of the deals done in 2012 were rounds greater than $5 million, with the largest five deals representing more than half of the year’s total funding. The largest digital health investment of the year was Castlight, which raised $100 million from T. Rowe Price and Redmile Group, with contributions from previous investors, including Morgan Stanley, Wellcome Trust, and U.S. Venture Partners. As for investors, 179 organizations invested in digital health companies in 2012, with the vast majority making only made one investment. This shows that, while the market may be heating up and investment is making its way to digital health, investors are still testing the waters.
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KEYWORDS: digital health, Rock Health, Redmile Group, Castlight, T. Rowe Price, Morgan Stanley, Wellcome Trust, U.S. Venture Partners, 3bl Media, Health, Health Minute