mHealth companies are witnessing a significant surge in funding amid the COVID-19 pandemic. mHealth companies raised nearly $2 billion in the first nine months (9M) of 2020, a 13% increase year-over-year (YoY), according to Mercom Q3 & 9M 2020 Digital Health Funding and M&A Report.
In 9M 2020, under the mHealth category, mobile health apps led the financing activity with $970 million, compared to $1 billion in 9M 2019, a five percent decrease. Wearable Sensors companies raised $703 million in 9M 2020, compared to $312 million in 9M 2019, a 125% increase YoY. Mobile Wireless Device companies secured $321 million in 9M 2020, compared to $437 million in 9M 2019, an 27% decrease YoY.
A total of 327 investors participated in the mHealth category in 9M 2020, led by Techstars with five rounds, followed by Khosla Ventures and Y Combinator with four each. Cormorant Asset Management, Founders Fund, Idinvest, Morningside Ventures, Optum Ventures, and RRE Ventures participated in three investment rounds each. A total of thirty investors participated in two rounds. While another 288 investors made one investment each.
Top funded mHealth companies in 9M 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).
Preventice Solutions, the developer of wearable patches that monitor cardiac arrhythmias remotely, raised $137M in a Series B financing round. Vivo Capital led the financing round with participation from Novo Holdings A/S. Existing investors, including Merck Global Health Innovation Fund, Boston Scientific, and Samsung Catalyst Fund, also joined the round with significant investment.
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.
Since 2010, 1,712 mHealth companies raised $13.7 billion, according to the Mercom database.
Image credit: ClassPass