Telehealth Companies Raised a Record $2.4 Billion in the First Quarter of 2021

The telehealth category witnessed a massive influx of VC funding during the first quarter (Q1) of 2021, raising a total of $2.4 billion. This was the largest amount received by any digital health category since 2010, according to the recently released Mercom’s Q1 2021 Digital Health Funding and M&A Report.

Seven large funding deals of over $100 million were responsible for the spike in funding, accounting for $1.4 billion of the total $2.4 billion funding raised in Q1 2021.

In Q1 2021 telehealth category saw over 200 investors participating in the funding rounds. Khosla Ventures, Max Ventures, and SignalFire each invested in two telehealth companies in Q1 2021. Other prominent investors who participated with a single round included – Tiger Global, Founders Fund, General Catalyst, Optum Ventures, F-Prime Capital, SoftBank, Y Combinator.

Within the telehealth category, telemedicine companies accounted for $2 billion in Q1 2021, the highest so far since 2010, and remote monitoring companies received $356 million.

Top 5 Telehealth funding deals in Q1 2021:

  • Ro (Roman), an online health startup, which started by selling hair loss supplements and erectile dysfunction medication to men, raised $500 million in a Series D funding round at a valuation of $5 billion
  • Forward Health, a remote biometrics monitoring system, announced $225 million in Series D funding
  • CityBlock Health, a startup that offers primary care, behavioral health, and virtual care services for lower-income communities in the U.S., announced the completion of a $192 million Series C extension funding round
  • Lyra Health, a provider of digital mental health benefits for employers, announced a Series E financing round of $187 million
  • Crossover Health, a provider of in-person and virtual care services for employers and health plans, raised $168 million in an oversubscribed Series D funding round

The U.S.-based telehealth companies secured $2.2 billion, with the rest of the investments going to companies from around the world.

In total, the telehealth sector has gathered over $12 billion since 2010, according to Mercom data.