Despite COVID-19 pandemic, mHealth companies raised over $1.3 billion in the first half (1H) of 2020, compared to $1.2 billion in 1H 2019, an 8% increase year-over-year (YoY), according to Mercom 1H 2020 Digital Health Funding & M&A Report.
In 1H 2020, under the mHealth category, mhealth Apps led the financing activity raising $794 million, compared to $627 million raised 1H 2019, a 27% increase YoY. Wearable Sensors companies raised $321 million in 1H 2020, compared to $285 million in 1H 2019, a 13% increase YoY. Mobile Wireless Device companies secured $216 in 1H 2020, compared to $264 million in 1H 2019, an 18% decrease YoY.
A total of 197 investors participated in the mHealth category in 1H 2020, compared to 236 in 1H 2019.
In 1H 2020, the mHealth financing activity was led by Optum Ventures and Cormorant Asset Management with three investments each. Abbott, Senvest Capital, Serena Ventures, Founders Fund, Quadrant Capital Advisors, Khosla Ventures, Janus Henderson, Octopus Ventures and Y Combinator announced two investments each. Another 186 investors made one investment each. Learn more about digital health investors
Top funded mHealth companies in 1H 2020
ClassPass, a provider of app-based unlimited access to fitness and wellness classes across multiple gyms and studios, raised $285 million in a Series E funding round. L Catterton and Apax Digital led the round, with participation from existing investor Temasek.
Element Science, a provider of patch-based wearable cardioverter defibrillator that monitors a patient’s heart, raised $145.6 million in a Series C financing round. Deerfield Healthcare and Qiming Venture Partners USA led the round with participation from Cormorant Asset Management, Invus Opportunities, Third Rock Ventures, and GV (formerly Google Ventures).
DispatchHealth, a home healthcare services app, closed a $135.8 million Series C round, led by Optum Ventures, with participation from existing investors Alta Partners, Questa Capital, Echo Health Ventures, new investors Oak HC/FT, Humana, and additional strategic investors.
Cue Health, the creator of an app-connected health monitoring device system, raised $100 million in Series C funding. Investors include Foresite Capital, Decheng Capital, Madrone Capital Partners, Johnson & Johnson Innovation (JJDC), and ACME Capital.
Hinge Health, a developer of wearable bands with motion sensors that help employees recuperate from musculoskeletal problems such as the lower back, knee, shoulder, and neck pain, raised $90 million in Series C funding. Bessemer Venture Partners led the financing round with participation from Lead Edge Capital and existing investors Insight Partners, Atomico, Heuristic Capital, 11.2 Capital, and Quadrille Capital.
Since 2010, 800 mHealth companies raised $7.2 billion, according to the Mercom database.
Image Credit: ClassPass