The year is already nearing half of the $ 15.3 billion raised in all of 2020
It may be hard to remember now, but digital health is a more recent phenomenon. Five years ago no one really knew what space was or how to define it. The expectation was that the space would eventually become widespread, but it could take about a decade to fully reach. After all, healthcare is so big that it often moves very slowly.
Thanks to the pandemic, that schedule has now accelerated beyond expectations, and there is widespread acceptance and acceptance of health care use and its expansion beyond an annual doctor’s visit.
In fact, the space has grown so much and so rapidly that we are only just past the end of the first quarter of the year and it is already on track to hit the record amount of capital raised in 2020 on a new report from Rock Health.
A total of $ 6.7 billion was invested in 147 transactions in the first quarter, nearly half of the $ 15.3 billion raised in all of last year. That number represents a 67.5 percent increase over the $ 4 billion raised in the fourth quarter of 2020, and more than doubles the $ 3.1 billion raised in the same quarter last year.
Part of that is due to bigger deals than ever: the average deal size reached $ 45.9 million in the first quarter, compared to $ 31.7 million in 2020 and $ 19.7 million in 2019. Total gave There were 25 stores in the quarter with sales in excess of $ 100 million, some of which include $ 500 million raised by Ro, $ 400 million raised by Insitro, $ 300 million raised by Hinge Health, $ 250 million raised by Tonal and $ 220 million raised by Komodo Health.
March was a particularly good month for digital health as it spanned two weeks with over $ 1 billion. For comparison: In 2011 a total of 1.1 billion US dollars was raised for the entire year. It has come to this point in 10 years.
Broken down by sector, on-demand healthcare led 17 transactions for $ 1.2 billion, followed by research and development catalysts with $ 1.1 billion in 13 transactions. The third largest was Population Health Management with $ 874 million in 12 deals.
The report also breaks down funding by clinical condition, with mental health thanks to Lyra Health’s $ 187 million round, Better Up’s $ 125 million round, and $ 100 million donation from Ginger is leading. Mental health has been the most funded illness since 2017, and that’s because these services “are often combined with broader product offerings,” for example with telemedicine companies like Doctor on Demand and Amwell, Rock Health said.
The second largest clinical disease was primary care, which included the aforementioned round from Ro plus $ 200 million for Dispatch Health and $ 60 million for Eden Health. Two areas in which there was a strong increase were the supply of the musculoskeletal system and gastrointestinal tract, which rose from 12th and 10th place in 2020 to 5th and 6th place in the first quarter.
In addition to the funds raised by the room this quarter, Rock Health also noted the surge in the IPO of digital health companies, particularly those opting for a SPAC (Special Purpose Acquisition Company) route, among companies acquired by an already publicly traded company be taken over. Essentially, take over this stock. Clover Health and HIMS are two major healthcare companies that started down this path earlier this year.
A recent report by Silicon Valley Bank predicted that up to 15 to 20 companies could enter the public market this year, while Rock Health identified 43 companies for its public exit watch list, including Pear Therapeutics, Color, Everlywell, 98point6, ZocDoc, Omada Health, Collective Health, K Health, Rest, Virta Health, and Capsule.
(Image source: timeshighereducation.com)