Digital health companies raised $10.3 billion VC funding during the first nine months (9M) of 2020, according to the latest Mercom’s 9M 2020 Digital Health Funding Report.
The funding amount was spread across 36 digital health categories in 9M 2020. The top five funded categories (Telemedicine, Data Analytics, mHealth Apps, Wearable Sensors, and Clinical Decision Support) accounted for 65% ($6.7 billion) of total ($10.3 billion) funding during 9M 2020.
Top-funded digital health categories in 9M 2020:
Telemedicine companies led the financing activity raising $3.2 billion or 33% of the (total $10.3 billion) funding raised during 9M 2020. The telemedicine funding amount was a 106% increase in 9M 2020, compared to $1.6 billion raised during 9M 2020. 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 the latest funding round at a $1.5 billion valuation.
Healthcare Data Analytics software companies raised $1.25 billion in 9M 2020, a slight drop in the funding activity, compared to $1.3 billion in 9M 2019. In a large round, Sema4, a patient-centered healthcare data analytics platform, raised $121 million at a post-money valuation of over $1 million.
mHealth Apps focused on fitness, wellness, and care & communication raised $970 million in 9M 2020, a slight drop, compared to $1 billion in 9M 2019. ClassPass, a provider of app-based fitness and wellness classes across multiple gyms and studios, raised $285 million in funding in a massive deal.
Wearable Sensors raised $703 million in 9M 2020, a 125% increase, compared to $312 million in 9M 2019. In a big round, Element Science, a provider of patch-based wearable cardioverter defibrillator that monitors a patient’s heart, raised $146 million in funding.
Clinical Decision Support software developer raised $660 million in 9M 2020, a 55% increase, compared to $425 million raised in 9M 2019. In a massive deal, Concerto HealthAI, an AI-enabled precision oncology platform, raised $150 million in funding.
Online Healthcare Service Booking companies raised $572 million in 9M 2020, a 17% increase compared to $487 in 9M 2019. Alto Pharmacy (fka ScriptDash), a digital pharmacy that lets consumers order medicine online, raised $250 million in funding in a huge round.
Other digital health categories that received significant funding during 9M 2020 include Practice Management Software developers ($553 million), Digital Wellness service providers ($523 million), Medical Imaging ($435 million), and Mobile Wireless Device ($321 million).
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