Global venture capital funding for digital health companies hit a record high in the first three months of 2020, according to a report from Mercom Capital Group.
Five things to know:
1. Funding activity was up 43 percent year-over-year for the first three quarters of 2020, hitting $10.3 billion. During the third quarter alone, there were 195 deals among digital health companies raising $4 billion all together, up from 161 deals raising $2.8 billion in the second quarter.
2. The top funding categories in 2020 so far include:
• Telemedicine: $3.2 billion
• Analytics: $1.3 billion
• mHealth apps: $970 million
• Wearables: $703 million
• Clinical decision support: $660 million
• Healthcare service booking: $572 million
• Practice management solutions: $533 million
• Wellness: $523 million
3. Early venture capital funding made up $1.2 billion of overall funding and 601 investors participated in the funding deals during the third quarter. During the second quarter, there were 488 participating investors.
4. There were 132 digital health mergers and acquisitions in the first nine months of the year, compared to 125 in the same period last year.
5. In 2020 so far, Teladoc bought Livongo for $18.5 billion, Invitae bought ArcherDX for $1.4 billion and Blackstone acquired Ancestry for $4.7 billion.