Despite COVID-19, Digital Health Shatters Funding Records with $6.3 Billion in 1H 2020

The first half (1H) of 2020 shattered all previous 1H global VC funding records, with $6.3 billion in new investments, which was 24% higher compared to $5.1 billion raised 1H 2019, despite the COVID-19 pandemic disrupting the economy.

Mercom Capital Group is previewing this data in advance of its upcoming 1H Digital Health Funding and M&A Report, which is set to be released on July 13, 2020.


Venture funding reached $2.8 billion during Q2 2020, an 11% decrease year-over-year compared to $3.1 billion raised in Q2 2019.

Healthcare practice-centric companies received 34% of the funding in Q2 2020, raising $947 million in 56 deals, and consumer-centric companies accounted for 66% of the funding, raising $1.8 billion in 105 deals.

“Adoption of Digital Health technologies and products have accelerated since the COVID-19 outbreak, which is reflected in the funding spike in the first half of the year. Telehealth hype has been backed by $2 billion in venture funding with no signs of slowing down,” said Raj Prabhu, CEO of Mercom Capital Group.

Other categories that received significant funding during Q2 include mHealth Apps, Analytics, Wellness, and Medical Imaging.

The top-funded categories in 1H 2020 were: Telehealth with $1.9 billion, followed by Analytics with $826 million, mHealth Apps with $794 million, Clinical Decision Support with $545 million, Healthcare Service Booking with $326 million, and Wearable Sensors with $321 million.


The top Telehealth VC deals in 1H 2020 included: $194 million raised by Amwell (formerly American Well), $155 million raised by KRY, $144 million raised by Zhiyun Health, $100 million raised by Mindstrong, and $93 million raised by Virta Health.

Telehealth funding was distributed in 85 companies during 1H 2020.

The top VC deals in 1H 2020 included: $285 million raised by ClassPass, $250 million raised by Alto Pharmacy, $194 million raised by Amwell (formerly American Well), $155 million raised by KRY, and $150 million raised by Concerto HealthAI.

Digital Health funding was distributed in 27 different countries in 1H 2020.

*Final numbers may vary due to any delayed reporting of deals.