Telehealth companies raised a record $5 billion in 1H 2021, a 150% increase year-over-year compared to $2 billion raised in 1H 2020.
This was the highest amount received by any digital health category since 2010, according to the recently released Mercom’s 1H 2021 Digital Health Funding and M&A Report.
The spike in telehealth funding was led by 15 large funding deals of $100 million or over, accounting for $2.8 billion (56%) of the $5 billion funding raised in 1H 2021.
In 1H 2021, over 400 investors participated in the telehealth funding rounds. The telehealth funding activity was led by General Catalyst, Optum Ventures, Oak HC/FT, Bessemer Venture Partners, SignalFire, and .406 Ventures.
Within the telehealth category, telemedicine companies accounted for $4.2 billion in 1H 2021, and remote monitoring companies received $787 million.
The U.S.-based telehealth companies secured $4 billion (80%) of the total $5 billion raised by telehealth companies in 1H 2021. The rest of the telehealth funding was distributed across 17 countries, worldwide including Canada, the U.K, India, and Germany, among others.
Babylon, a London-based telemedicine company that uses AI, closed a $550 million round of funding, valuing Babylon Health at more than $2 billion. Investors include PIF, a sovereign fund; Ergo Fund of Munich Re Ventures, and existing Babylon shareholders Kinnevik and Vostok New Venture.
Ro, an online health startup that sells hair loss supplements and erectile dysfunction medication to men, raised $500 million in a Series D funding round at a valuation of $5 billion. The funding round was led by General Catalyst, FirstMark Capital, and TQ Ventures, with SignalFire, Torch, BoxGroup, and new investors Altimeter, Baupost, and Dragoneer.
KRY, a telemedicine app that allows users to consult with a qualified health professional, announced a Series D funding round of over $300 million to fuel its European expansion plans. The funding round was led by CPP Investments and Fidelity Management & Research with participation from existing investors.
American Well, provider of a web-based telehealth platform that allows patients to connect with healthcare providers through video, text, chat, and phone, raised $291 million in a VC funding round.
Tencent-backed online health care platform Tencent Trusted Doctors raised $250 million at a valuation of more than $1 billion. The round was led by Country Garden Holdings, Tencent Holdings, and Sequoia Capital.
Lyra Health, a provider of mental health benefits for employers, completed a $200 million financing round. Coatue led the round and was joined by new investor Sands Capital, along with existing investors.
Image Credit: Hospital IQ