mHealth companies saw a strong surge in funding activity, raising a record $1.4 billion VC funding in Q1 2021. The funding increased by 94% year-over-year (YoY), compared to $728 million raised in Q1 2020.
The quarter-over-quarter (QoQ) funding increased by 107% in Q1 2021, compared to $683 million raised in Q4 2020, according to the recently released Mercom’s Q1 2021 Digital Health Funding and M&A Report.
Within the mHealth category, mobile health apps led the financing activity in Q1 2021 with $912 million, a 116% increase compared to $421 million in Q4 2020. Wearable Sensors companies raised $355 million in Q1 2021, a 216% increase compared to $112 million in Q4 2020. Mobile Wireless Device companies secured $146 million in 2020, compared to $150 million in Q4 2020.
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 – has closed a $310 million Series D funding round. According to the company, the Series D round values Hinge Health at $3 billion (post-money valuation). Coatue Management and Tiger Global led the funding round with participation from existing investors.
DispatchHealth, which offers in-home urgent care and hospital-at-home programs using a mobile app, secured an additional $200 million in Series D financing. Tiger Global led the funding round with early investors Alta Partners, Echo Health Ventures, Humana, Oak HC/FT, and Questa Capital. This additional investment brings the company’s total funding to more than $417 million at a $1.7 billion valuation.
Rightway, which provides a consumer-centric care navigation and pharmacy benefits app, raised $100 million in Series C funding at a valuation of $1.1 billion. Khosla Ventures led the funding round, with participation from Thrive Capital, Tiger Global Management, and other existing investors. Rightway has raised over $130 million to date.
Bigfoot Biomedical, a developer of connected insulin pump and pen and cloud-based type 1 diabetes management system, raised $57 million from Madryn Asset Management, an alternative asset management firm focused on investments in health care companies.
Remote diabetes data management app Glooko raised $30 million in a Series D round of funding. Health Catalyst Capital led the financing with participation from existing investors Canaan Partners, Georgian, Novo Nordisk, Insulet, and Mayo Clinic. According to Glooko, the app connects people with diabetes and their healthcare professionals, enabling telehealth, clinical research, and improved collaboration.
A total of 37 mHealth companies were funded in Q1 2021. Learn more about other mHealth companies.