Digital health companies raised a record $14.8 billion in VC funding during 2020. The funding was distributed across 40 different digital health categories.
Top funded categories were telemedicine, data analytics, mobile health apps, and clinical decision support, which together secured 60% ($8.6 billion) of total ($14.8 billion) funding in 2020. These top-funded categories received over $1 billion each in investments.
Top-funded digital health categories in 2020:
Telemedicine companies led the financing activity raising a record $4.3 billion or 30% of the (total $14.8 billion) funding raised during 2020. The telemedicine funding amount was a 140% increase in 2020, compared to $1.8 billion raised in 2019. In a massive funding round Ro (Roman), an online health startup, which started by selling hair loss supplements and erectile dysfunction medication to men, raised $200 million in a funding round at a $1.5 billion valuation. Ro competes against startups like Hims & Hers, which has announced plans to go public at around a $1 billion valuation. Since 2010, more than 600 telemedicine companies have raised over $9 billion in VC funding. Learn more
Healthcare Data Analytics software companies raised $1.8 billion in 2020, a 13% increase in the funding activity. In a large funding round, LeanTaaS, a predictive analytics and machine learning company specializing in improving healthcare operations raised $130 million in a Series D funding round, bringing the company’s total raised to over $250 million.
mHealth Apps focused on fitness, wellness, and care & communication raised $1.4 billion in 2020, a 17% increase in funding, compared to $1.2 billion in 2019. The largest deal: ClassPass, a provider of app-based fitness and wellness classes across multiple gyms and studios, raised $285 million in a Series E funding round.
Clinical Decision Support software developer raised $1.16 billion in 2020, a 55% increase in funding, compared to $748 million raised in 2019.The top deal in this category – SomaLogic, a precision digital health company providing proteomic discovery and applications enhancing clinical decision making, raised $214 million in a Series A funding round, bringing its total funding to date to over $485 million.
Other digital health categories that received significant funding during 2020 include Practice Management Solutions ($837 million), Wearable Sensors ($815 million), Digital Wellness ($792 million), and Healthcare Booking Services ($765 million). Since 2010, Digital Health companies have received $59 billion in VC funding in over 5,000 funding deals, according to Mercom’s digital health funding database.