Investor appetite continues to hold strong for digital health as companies providing these technologies have already surpassed $1 billion in funding during the first quarter alone, according to a recent report from StartUp Health.
Deal funding has more than doubled in the past year. Though the number of deals has diminished from 144 transactions in the first quarter of 2013, to 133 deals in the first quarter of 2014, the funding amount jumped from $599 million to $1.35 billion.
The top investment during the quarter included $105 million raised by HeartFlow, a company that provides clinicians with a non-invasive diagnosis of coronary artery disease via coronary CT scans and proprietary computer algorithms.
MedHok, which provides a single platform for care coordination for physicians, patients, coordinators and payer, was able to rake in $78 million during the first quarter, among several other digital health companies.
In terms of geography, the majority of funding took place in Northern California and the Northeast, with $561 million and approximately $390 million across multiple states, respectively.
Investors aren’t just looking to fund any digital health company. In 2013, investors put most of their money toward technologies that aim to lower the costs of care, with big data leading the way with $712 million and 114 deals.
Interest in digital health that helps organizations navigate the healthcare system as well as personal health technology garnered $429 million and $442 million in funding last year, respectively.
Companies specializing in vital signs and monitoring sensors were able to obtain $364 million of funding collectively in 2013, while patient engagement tech received $359 million, notes StartUp Health.
Since 2010, digital health funding is $7.4 billion with a total of 1,393 deals to date.
Written by Jason Oliva