Digital Health: Sprinting to Year End…

This post is by ontheflyingbridge from On the Flying Bridge

Notwithstanding the election results tomorrow / next few days / next few weeks (God forbid), the investment activity in the healthcare technology sector will continue to power ahead. The pandemic and its assault on public health infrastructure and the healthcare system has exposed significant shortcomings, all to be solved by transforming the “busines of healthcare.”

In part a response to COVID-19, investors have poured $4.0 billion this past quarter into 97 digital health companies (per Rock Health), suggesting that this sector will likely see more than $12.0 billion invested in 400 companies for the year. Interestingly, the average round size in 3Q20 was $41.2 million, greater than the year-to-date average of $30.2 million, suggesting increasing investor enthusiasm as a number of emerging winners become clearer. Across all industries, venture capitalists invested $37.8 billion in 2,288 companies in 3Q20, implying that the digital health sector is now nearly 11% of all venture investment activity.

A MobiHealthNews analysis tabulated an even more robust $4.6 billion invested in 109 digital health companies in 3Q20. In addition to the obvious investor interest in telehealth and virtual care models, a number of other themes emerged this past quarter such as prescription management and on-demand pharmacies, remote monitoring, patient triage and advanced data analytics. Year-to-date MobiHealthNews identified 24 companies that raised rounds larger than $100 million which accounted for 41% of all dollars invested in the sector so far. The three most dominant themes in 2020 have been on-demand services ($2.0 billion, of which (Read more…)