80% of Digital Health Funding Was Raised by US Companies in the First Half of 2020

The digital health funding amount was distributed across 27 countries during 1H 2020, according to Mercom 1H 2020 Digital Health Funding Report.

A total of two hundred seventy-three companies raised $6.3 billion during 1H. Almost 80% ($5 billion) of the funding went into digital health companies based in the United States. China, Sweden, Canada, Israel, the U.K, and India, each raised $100 million or more during 1H.

During 1H, the U.S. funding activity was led by Optum Ventures, Oak HC/FT, UnityPoint Health Ventures, Andreessen Horowitz, Venrock, and GV (formerly Google Ventures).

California secured 44% of the total funding with $2.2 billion, followed by New York with $1.1 billion and accounted for 22%.

MercomTwo states – California and New York – accounted for 66% of the funding. Massachusetts, Illinois, Colorado, and Ohio, each raised over $100 million during 1H 2020.

The 1H funding levels were also all-time high (in the U.S.) since 2010 – driven by massive funding rounds of $100 million and more by telehealth companies.

The funding increase in the first half of 2020 shows a clear correlation to the COVID-19 pandemic. Telehealth, mHealth apps and data analytics companies have benefitted as solutions in response to the pandemic.

The biggest telehealth deals in the U.S. during 1H 2020 were:

Amwell (formerly American Well), a telehealth company, closed a $194 Series C funding round, bringing its total raised to date to over $800 million. Mindstrong, a digital mental health consultation platform, secured $100 million in Series C funding round, bringing its total raised to over $150 million since its inception in 2014.

Since 2010, digital health companies worldwide have raised $50 billion, including $38 billion from the U.S.