A look at the growth of digital health funding over the past five years. Photo source: StartUp Health
Over the past five years, the digital health industry has grown exponentially. According to StartUp Health, in 2010 the digital health sector generated about $1 billion in investments, while 2015 is expected to bring in a total of $6 billion in funding. StartUp Health released its annual health insights report for 2015 earlier this year where it analyzed major developments in the digital health industry. Here are some of the biggest takeaways from the report:
- The digital health industry has hit its stride: 2015 saw a significant shift towards validated innovation, causing total funding to be lower than last year. Today’s capital investors are supporting companies with proven leadership and strategies to make more impact per invested dollar.
- More companies are going public: A record-breaking six digital health companies took the IPO path this year. Companies include Fitbit, Natera, Teladoc, Evolent Health and more.
- The most active markets for digital health in 2015: Compared to the 2014 report, some markets made drastic jumps in the ranks. The top three markets for digital health reported in 2015 include patient/consumer experience, wellness/benefits, workflow and more. These markets helped raise $1.3B, $1.22B and $641M in digital health funding respectively.
- Funding is coming from investors outside of Silicon Valley: While a majority of funding still is coming from Silicon Valley, other cities are emerging as investment hubs. New York City, Los Angeles, Boston, Miami, Chicago, and Denver are among the most active.
- Raising funds is expected to be less difficult in 2016: Based on StartUp Health’s survey, the general consensus among CEOs and entrepreneurs is that it will be easier to raise money for digital healthcare investments.
In Denver, the health technology industry grew immensely last year. According to an article on Confluence Denver, several health tech startups, including RxRevu, RxAssurance, CirrusMD, Kindara and Prima-Temp, all received digital health funding last year. There’s also the development of the new Catalyst Health-Tech Innovation that will accelerate innovation and drive change for the healthcare industry. The organization plans to transform Colorado into the top digital health cluster in the nation by 2020.
The healthcare system is changing, empowering patients to take control of their own care. This has led hundreds of companies to enter the healthcare market to develop products that help these patients.
Denver and Kansas City-based custom software development firm, Twentyseven Global, helped client, Play-It Health, create a health tech mobile app called Plan-it Med last year. The mobile app helps patients accurately stay on track with their medical plan. It also provides reminders and education so that users can improve health engagement. Play-it Health founder, Dr. Kimberly Gandy, got inspiration for the app after watching patients struggle with engaging and adhering to their medical regimen.
Creighton O’Neal, vice president of client services for custom software development company Twentyseven Global, says, “The energy and enthusiasm in the digital healthcare industry in Colorado was tremendous in 2015 and that momentum is rolling right into 2016.”
To see the full StartUp Health report, click here.