StartUp Health: Digital health companies raised $5.8B this year

StartupHealth 2015 chart

After Rock Health, now we have StartUp Health releasing its numbers for the whole year. According to their findings, with $5.8 billion raised, this year compares well with record-breaking 2014 ($7.0B), while the total dollar funding is still double that of 2013 ($3.0B).

In 2015, we saw fewer deals (477) than in 2014 (561), but companies that are raising are able to do so faster than in 2014. Also the shift towards mid- and late-stage deals was noted, increasing 27% and 50%, respectively.

Nevertheless, investors continue to support early stage innovation, with nearly 600 organization providing both the money and expert advice to startups.

With 111 deals and $1.30 billion raised, Patient / Consumer Experience topped the list of most active digital health markets of the year.With 111 deals and $1.30 billion raised, Patient / Consumer Experience topped the list of most active digital health markets of the year. Wellness / Benefits followed closely with $1.22 billion spread across 54 deals. Workflow, Personalized Health / Quantifies Self, and Medical Device round up the top 5 list with $641M / 79 deals, $583M / 32, and $483M / 64 deals, respectively.

Top 5 deals of the year were Zenefits with $500M raised, followed by China’s Guahao.com ($394M), Oscar ($145M), ZocDoc ($130M) and 23andMe ($114M).

When it comes to most active US metro areas, San Francisco Bay Area continues to dominate with 104 deals totaling $2.0 billion. Other cities worth noting were New York City ($612M – 42 deals), Los Angeles ($391M – 22 deals), Boston ($378M – 36 deals) and Miami ($248M – 11 deals).

Top 5 venture investors this year include GE Ventures with 10 deals; Google Ventures, Khosla Ventures and NEA – each with 9 deals; Qualcomm Ventures, Rock Health, Tencent and Venrock – each with 8 deals; F-Prime and Sequoia each with 7 deals.

During 2015, we also saw a record-breaking six digital health companies going public, including Evolent Health, Fitbit, MindBody, Natera, Teladoc and Invitae.

Here’s StartUp Health’s presentation with few additional details.