“Global venture capital funding for digital health companies hit a $15 billion high in the first half of 2021, driven in large part by telehealth investment.”
“Funding activity was up by 138% during the first half of 2021, compared to $6.3 billion raised in the first half of 2020, according to a report from Mercom Capital Group, a global communications and research firm.”
“Corporate funding into digital health companies, including venture capital, public market financing, and debt, totaled $19 billion so far in 2021.”
“‘The digital health sector had a spectacular first half of 2021. Venture investments in digital health during the first half of 2021 have already surpassed funding raised in all of 2020 and is the largest amount raised in a single year since 2010,’ said Raj Prabhu, CEO of Mercom Capital Group.”
“Telehealth again led funding activity, accounting for almost 30% of the funding raised in the first half of 2021.”
“The record-shattering investment in telehealth comes even as utilization drops steadily. Americans are slowly returning to medical facilities to receive care and are using fewer telehealth services after last year’s pandemic high, according to new data.”
“Telehealth utilization fell nationally for the third straight month, according to FAIR Health’s Monthly Telehealth Regional Tracker.”
“But investors continue to pour cash into the sector. Telehealth companies raised the funds over 105 deals, a 147% increase in year-over-year compared to $1.7 billion raised in 79 deals. Other key digital health sectors that drove sky-high funding include wellness with $1.7 billion in funding, mHealth apps with $1.6 billion, analytics with $1.5 billion and clinical decision support with $1.1 billion…” Read the full article here.
Source: Digital health dollars hit $15B high driven by telehealth investment in 2021 – By Heather Landi, July 19, 2021. Fierce Healthcare.
