US Digital Health Companies Attracted 85% of the VC Funding in the First Quarter of 2021

The Digital Health sector saw a total of 21 different countries receiving venture capital (VC) funding, according to Mercom’s Q1 2021 Funding and M&A Report. Eighty-five percent of the total ($7.2 billion) digital health VC funding in Q1 2021 was raised by US-based companies.

California-based companies received 44% of the funding, followed by New York with 35%. Colorado, Maryland, Texas, and Massachusetts were the other states which attracted more than $100 million during Q1 2021. Other countries which saw funding over $50 million were – China, Canada, Israel, India, and the UK.

Digital Health VC Funding Q1 2020-Q1 2021 in US$ in Million (U.S. vs Rest of the World)

The funding levels in the US was at an all-time high since 2010. In Q1 2021, the US also witnessed record funding rounds (25 to be precise) of $100 million or more. Telehealth, mHealth apps, and data analytics companies have benefitted as solutions in response to the pandemic.

During Q1 2021, US funding activity was led by Tiger Global, Insight Partners, Bessemer Venture Partners, General Catalyst, Khosla Ventures, Optum Ventures, and Thrive Capital.

Top five deals in the US during Q1 2021

Ro (Roman), an online health startup that sells hair loss supplements and erectile dysfunction medication to men, raised $500 million.

Hinge Health, a developer of wearable bands with motion sensors that help employees recuperate from musculoskeletal problems, closed a $310 million Series D funding round.

Tonal, a connected home fitness system, raised $250 million in a funding round, valuing the company at $1.6 billion.

Forward Health, a provider of an intelligent biometrics monitoring system, announced $225 million in a Series D funding round.

Komodo Health, an AI-enabled data analytics software platform for healthcare providers, announced a $220 million Series E funding round.