Digital health funding has pass the $3 billion mark in the first three quarters of the year, up from $2.3B since midyear. According to Rock Health’s data, total 2014 dollars raised has steadily increased in Q3 with over 100% YoY growth, though the growth slowed in the third quarter compared to Q2, and is more in line with Q1.
The average deal size for the year dropped $2.5M per deal to $13.1M since the midyear mark. However, the average deal remains 31% larger than 2013 (when looking at venture funding data that includes deals above $2M).
The top three deals in the third quarter were diverse and included Proteus Digital Health ($52.0M), Teladoc ($50.3M) and Chunyu ($50.0M).The top three deals in the third quarter were diverse and included Proteus Digital Health ($52.0M), Teladoc ($50.3M) and Chunyu ($50.0M).
In the US, California continues to dominate the digital health funding space, representing 37% of all funding year to date. Together, New York and Massachusetts account for the following 20% of funding dollars, taking the silver and bronze after California.
When it comes to the M&A, we’ve seen three major deals announced in Q3: Cognizant – Trizetto, Google – Lift Labs, and HCA – PatientKeeper.
The 2014 is expected to finish off strong and continue to provide digital health companies with capital to make an impact in healthcare.