Digital Health venture funding (VC) funding hit a record high in Q1 2020, with $3.6 billion in 142 deals. The funding amount was distributed across 19 countries in Q1 2020, compared to 16 countries in Q4 2020.
The United States-based companies led the funding activity with 94 deals for $2.8 billion (or 78% of the total funding), followed by Swedish companies that secured $150 million in three deals.
The rest of the funding was distributed among 17 countries, including Singapore, India, the U.K., Canada, Israel, France, China, Switzerland, Germany, Finland, and UAE.
Within the U.S., companies from California received $1.3 billion in 26 deals, followed by companies in New York with $668 million in 17 deals and Massachusetts with $347 million in ten deals.
Since 2010, U.S.-based Digital Health companies raised over $35 billion in VC funding, while companies outside the U.S. have raised close to $12 billion.
During Q1, Oak HC/FT, a venture growth equity fund, invested almost $200 million in five companies – axialHealthcare, Komodo Health, Maven, Olive, Vesta Healthcare, and Venrock, a California-based venture capital firm, invested $310 million in five companies – Element Biosciences, Kyruus, Lyra Health, Suki (formerly known as Robin AI), and Virta Health.
Strategic corporate venture capital firm Cigna Ventures invested $65 million in four companies – Arcadia, AristaMD, RecoveryOne, Buoy Health, and UnityPoint Health Ventures, a venture capital firm that invests in early-stage health care companies, backed four companies – Quit Genius, Ride Health, eko.ai, Inbox Health – providing $27 million during Q1.
Ten investors, each funded three digital health companies, and another 34 investors made multiple investments during the quarter.
Most of the investment went into Series B and C rounds with $707 million and $1.1 billion, respectively. Early rounds Seed and Series A raised $282 million in 36 deals. The average funding deal size in Q1 2020 was $25.2 million.
In terms of exits (M&A), U.S.-based companies participated in 35 of the 41 M&A transactions recorded in Q1 2020. The rest of the M&A transactions were spread across Canada, Germany, and the U.K.