mHealth companies witnessed a strong surge in funding amid the COVID-19 pandemic. mHealth companies raised $2.7 billion in 2020, a 19% increase year-over-year (YoY), according to Mercom Q4 and Annual 2020 Digital Health Funding and M&A Report.
Within the mHealth category, mobile health apps led the financing activity with $1.4 billion, compared to $1.2 billion in 2019, a 17 percent increase. Wearable Sensors companies raised $815 million in 2020, compared to $457 million in 2019, a 78% increase YoY. Mobile Wireless Device companies secured $471 million in 2020, compared to $556 million in 2019, a 15% decrease YoY.
A total of 448 investors participated in the mHealth category in 2020, led by Khosla Ventures and Techstars with five rounds each, followed by Optum Ventures and Y Combinator with four each. BNP Paribas Développement, Cormorant Asset Management, Founders Fund, Idinvest Partners, Morningside Ventures, NextView Ventures, Polaris Partners, RRE Ventures, and SOSV participated with three investment rounds each.
Top funded mHealth companies in 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.
Strava, a GPS based tracking app for cyclers and runners, raised $110 million in funding, led by TCV and Sequoia Capital, with participation by Dragoneer Investment Group and existing investors including Madrone Capital Partners, Jackson Square Ventures, and Go4it Capital.
WHOOP, the creator of an app-connected smart wearable strap that tracks fitness activities, providing a multitude of performance metrics and other data, has closed a $100 million Series E financing.
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.