Clinical Trial Recruitment Platform Trialbee Raises $12 Million

Digital health had its strongest quarter ever in Q1 2020 with an all-time high $3.6 billion funding, according to the Mercom Q1 2020 Digital health Funding & M&A Report. The venture funding in Q1 2020 was 79% up compared to the same quarter of last year.

The funding was spread across 22 digital health categories in Q1 2020. Top five categories – Telemedicine, Analytics, Clinical Decision Support, mHealth Apps, and Healthcare Service Booking companies received 70% or $2.5 billion of the total $3.6 billion raised in Q1 2020.

Top Funded Digital Health Categories in Q1 2020

On-demand telemedicine service providers led the financing activity with almost $800 million, up 253% YoY compared to $220 million in Q1 2019. Top deals included Swedish online medical consultations company KRY raising $155 million, followed by Chinese online diabetes teleconsultation platform, Zhiyun Health’s  $144 million fundraise. Ninety-six investors participated in telemedicine financing; among them, High-Tech Gründerfonds, Lerer Hippeau, Optum Ventures, and Three Fields Capital each invested in two rounds.

Healthcare data analytics companies raised $573 million in Q1 2020, which was up 3% YoY, compared to $557 million in Q1 2019. Verana Health (formerly DigiSight), raised $100 in a financing round led by GV (formerly Google Ventures). Seventy-three investors participated in the analytics sector in Q1 2020. Healthworx and Andreessen Horowitz led the analytics financing activity with each investing in two companies.

Clinical Decision Support companies raised $446 million, up 317% YoY, compared to $107 million. Fifty-nine investors participated in funding rounds; Oak HC/FT led the financing activity with two deals. Top two deals – Concerto HealthAI raised $150 million, and Tempus secured $100 million, bringing its total funding to date to over $600 million, according to Mercom data.

Mobile Apps focused on care, communication, fitness, and wellness raised $365 million, down 7% YoY, compared to $392 million in Q1 2019. In the largest funding round of the quarter, ClassPass raised $285 million in a Series E round, co-led by L Catterton and Apax Digital, with participation from existing investor Temasek. Thirty-eight investors participated in mHealth apps funding deals in Q1 2020.

Healthcare Service Booking companies secured $306 million, a 73% increase YoY, compared to $177 million raised in Q1 2019.

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