Rock Health unveiled digital health funding figures for the first three months of the year.
Companies looking for cash managed to secure more than $630 million, which may be an impressive figure, but it’s not on par with Q1 2014. For what it matters, at more than $4 billion raised, 2014 was a record-breaking year for the industry.
Looking at all the disclosed US deals over $2 million, the average deal size during the quarter was around $10 million, with Seed and Series A rounds accounting for the 60% share (of the deals). Twenty-one percent of funding went towards Series B rounds with ClassPass’ $40M and Collective Health’s $32M leading the pack.
The top six categories accounted for 61% of the quarter’s funding; these include analytics / big data, healthcare consumer engagement, digital medical device, population health management, digital diagnostics, and EHR / clinical workflow tools.
When it comes to the M&A activity, this was a record quarter for the industry, with 42 deals announced, 11 of which had a disclosed aggregate value of over $1.1 billion. Digital health companies were the leading acquirers with 19 deals that ranged from EHR and clinical workflow to clinical trial management. Deal highlights include Under Armour – MyFitnessPal for $475 million, Athenahealth – RazorInsights and webOMR, and Fitbit – FitStar for at least $17.8 million.
According to Rock Health, this flurry of exits will keep attracting investor (and buyer) attention.
Meanwhile, Startup Health revealed its own findings, which are neatly presented in the slides below.
