Digital Health Startups Exceed $1.9 Billion Funding for 2013

Digital health companies experienced a prosperous year for funding in 2013, achieving more than $1.9 billion worth of investment for varying types of healthcare technology, according to a recent report from startup seed fund Rock Health.

Digital health funding smashed records last year, reaching $1.97 billion in 2013 alone, according to Rock Health’s report. This increase for 2013 represents a 39% increase compared to the previous year and a growth of 134% since 2011. 

Increasing interest coming from investors undoubtedly had a sway in the funding uptick for 2013. 


Last year, 302 separate investment firms completed digital health deals. Of these investors, 27 executed three or more deals in 2013, compared to only 8 in 2012. 

Even “dabblers”—those making just one investment—grew by over 70% versus 2012. Of the dabblers who invested in 2012, 32% of them invested again in 2013. 

The Social Capital Partnership (7 deals) and Northwest Venture Partners (6) were among the most active investors in terms of number of deals, while a number of other investor groups made at least three or four investments in digital health companies last year. 


In terms of the top categories for technology, there were six major themes of 2013 that comprised almost 50% of all funding for the entire year. 

EHR and clinical workflow technologies led the pack with $245 million in funding, while tech for healthcare consumer engagement bolstered the lower-end of these themes with $119 million. 

Companies specializing in digital medical devices and wearable biosensing devices garnered $146 million and $136 million worth of funding in 2013, respectively.

“This is not an ephemeral trend,” write Rock Health CEO Halle Tecco and Chief Strategy Officer Malay Gandhi, the study’s authors. “We are perpetually surprised by the ingenuity of the entrepreneurs who choose to work in healthcare. As digital health companies develop cash generating business models that can threaten (or entrench) incumbents, it seems venture investors, public markets and acquirers are beginning to agree.” 

View the Rock Health report.

Written by Jason Oliva