The latest CB Insights report shows that corporate investments into digital health and health IT companies reached $2.2 billion in funding through the first half of 2014. According to the research firm, digital health startups skyrocketing funding record is in direct correlation with big corporate players such as Google, Merck, and BlueCross BlueShield getting into the game.
Qualcomm Ventures is the biggest investor followed by Merck, BlueCross BlueShield, Google Ventures, and Intel Capital.From 2010 until today, corporate investors pumped over $2.34 billion into digital health and health IT companies, participating in over 210 deals. With 2014 not being over yet, all statistics show that this year will set a new record regarding corporate investments in digital health deals. This year top corporate investments include Flatiron Health’s $130M Series B (Google Ventures), Health Catalyst’s $41M Series B (Kaiser Permanente Ventures) and Telcare’s $32.5M Series C (Qualcomm Ventures).
2014 digital health/health IT deal activity by corporations already tops that of 2012 by 89% and 2011 by 183%. Since 2010, 41% of corporate investments in the market is to early-stage deals, whereas 36% goes to the mid-stage. Among the late-stage companies that have taken corporate investment are Practice Fusion (Qualcomm Ventures, Salesforce Ventures), Voluntis (Sham Innovation Sante, Qualcomm Ventures) and HealthSense (Merck Global Health Innovation Fund).
State-wise, California is dominant leader followed by Massachusetts and New York. Qualcomm Ventures is the biggest investor followed by Merck, BlueCross BlueShield, Google Ventures, and Intel Capital.