StartUp Health: Digital health startups attract $6.6B in Q3 2020

It brings 2020's year-to-date funding total to around $16B, more than any previous full year on record.

StartUp Health Q3 2020

StartUp Health released its findings for the third quarter of 2020 and they are promising. The company’s CEO Steven Krein even said that this is “a tipping point for digital health.”

Despite the ongoing pandemic, digital health startups have managed to attract the interest (and money) from investors. The top deals during the quarter were:

  • Zwift (home fitness) – $450M
  • Grail (cancer detection) – $390M
  • VillageMD (value-based primary care) – $275M
  • Freenome (cancer detection) – $270M
  • Recursion (AI drug discovery) – $239M

In addition to these mega deals, there were also around 40 deals that were under $10M per round during the quarter — or 95 deals YTD.

We have also seen a few companies going public during Q3 2020 — including Accolade, GoHealth, Oak Street Health, Outset Medical, Amwell, and GoodRx.

Furthermore, there were a few notable partnerships such as the one Teladoc struck with Livongo to extend the telemedicine giant into the chronic care arena, Walmart with pharmacy benefits manager Capital Rx, while Amwell deepened its partnership with remote diagnostic company Tyto.

According to Krein, what we are seeing is “an industry coming of age.”