Digital well being continues to interrupt funding information as corporations throughout the globe raked in $8.1 billion in enterprise capital throughout the third quarter.
Investments within the second quarter had already reached a all-time excessive with digital well being corporations scooping up $7.7 billion, as the cash pumped into the sector continues to build up. Over the past year, each quarter has set a record for enterprise capital going to digital well being startups, in keeping with knowledge from Mercom Capital Group, a market analysis agency that is tracked digital well being since 2010.
Enterprise capital buyers have poured $23 billion into digital well being corporations to this point this yr, which is greater than throughout all of 2020.
1. Telehealth: $2.5 billion (up 74.1% year-over-year). Telehealth continues to lead digital health funding. Whereas telehealth utilization has dropped because the early phases of the COVID-19 pandemic, healthcare executives nonetheless anticipate telehealth to stabilize at a higher rate than before the pandemic. The highest telehealth deal within the quarter was a $400 million Collection D funding spherical raised by Cityblock Well being, an Alphabet spinout that gives providers to low-income populations via in-person outreach and digital care.
2. Information analytics: $1 billion (up 143.2%). This subsector is the best-funded inside a broader class of software program corporations that assist healthcare suppliers handle well being knowledge. The implementation of federal data-sharing regulations designed to facilitate info exchanges between healthcare organizations has prompted larger funding on this space. Deep Genomics, an organization that makes use of synthetic intelligence to higher perceive genetics, led funding on this area with a $180 million Collection C.
3. Cellular well being apps: $682 million (up 287.5%). Apps make up about half of the bigger cellular well being class, which additionally contains wearable sensors and cellular units. This class has taken off because the pandemic intensified demand for digital care. Employers increasingly looking to boost employer benefits have embraced cellular well being instruments, additionally contributing to progress. Well being and well-being app vendor Palta raised the most important funding spherical within the quarter with a $100 million Collection B.
4. Observe administration instruments: $585 million (up 82.8%). Many hospitals and well being methods are turning to digital instruments to handle persistent workflow challenges like burdensome clinical documentation and are turning to software program designed to assist clinicians seize knowledge and derive insights. Olive, a robotic course of automation firm that sells instruments to automate payer and supplier workflows, raised probably the most within the subsector with a $400 million funding spherical.
5. Well being info exchanges: $520 million (up 26,000%). Simply two corporations disclosed funding rounds on this subsector final quarter, however one mega-round—generally outlined as a funding spherical of $100 million or extra—was sufficient to catapult it to the fifth spot. Commure, a software program startup that sells a improvement platform to assist distributors change knowledge with each other, raised $500 million in a Collection D funding spherical, which was the most important amongst all digital well being corporations that disclosed investments that quarter.