Health systems' venture arms are among the biggest investors in the digital health space, according to an Oct. 28 report by CB Insights.
Five insights:
- General Catalyst was the biggest investor of digital health companies, backing 14 startups in the third quarter.
- Health systems and their venture arms were in the top 10 health IT investors spots. Milwaukee-based Froedtert, Seattle-based Providence Ventures, Pittsburgh-based UPMC Enterprises, Long Beach, Calif.-based MemorialCare Innovation Fund, Phoenix-based Banner Health and Nashville, Tenn.-based HCA Healthcare each backed two companies in the third quarter.
- The largest equity deals in the third quarter were Cityblock Health, Olive and XtalPi, which all raised $400 million in series D funding.
- Year-to-date funding for digital health companies has surpassed that of 2020, with $39.6 billion raised in the first nine months of 2021. Digital health companies raised $31.1 billion in 2020.
- Digital health deals set a record with 727 deals recorded in the third quarter of 2021. The previous record was 701 in the second quarter of 2021.