Digital health is increasingly attractive to venture capitalists

In 2018, global investments by venture capitalists (VC) reached 9.5 billion dollars, with 32 percent increase on the previous year. Total corporate funding for Digital Health companies – including debt and public market financing – reached $13 billion in 2018, with a 58 percent increase.

Data come from a Mercom Capital Group report  (the report is on payment, but a synthesis is available free). Only in United States the companies interested in the Digital Health collected 7 billion dollars, while the remaining 2.5 were distributed in the remaining countries.

The diagram below shows the highly increasing trend in the last eight years.

Another interesting point to examine is the distribution of investments among the different sectors of the Digital Health. On the top data analytics, which gained 2.1 billion dollars. This sector is worth today 9 billion dollars and has a CAGR of 27%. Healthcare is a very attractive sector and data analytics are creating a great interest.

In the investments rank, mobile apps follow with 1.27 billion dollars investments by Venture Capitalist. Welfare and Healthcare are two themes which attract more and more developers and users. In this sector main investments are made on apps which allow people to do an auto-diagnosis or receive suggestions for their health.

Third in the investments rank is the telemedicine, with 1.1 billion dollars. Notwithstanding the uncertainty and factors which slow down its growth, it is considered by investors a high-potentiality sector.

We find then mobile wireless technology companies, with 847 million dollars and Clinical Decision Support System (CDSS) with 714 million. This one counts today 900 million dollars with a CAGR of 11.8 percent.

Lastly the Wearable Sensors Technology companies with 703 million dollars. This sector is strongly increasing, where the research is aimed to enlarge the vital parameters to be measured in a non-invasive way.

The investments regarded 648 deals in 2018, of which: consumer-centric companies brought in 5.2 billion dollars (up 24 percent) and practice-centric companies raised close to 4.3 billion (up 43 percent). This data needs a reflection and contribute to reinforce doubts in pulling patients onto a “self-made care”.

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