Venture funding for digital health startups plummeted in both the quantity of deals and the size of those deals in 2019, marking a steep drop from 2018's record-high funding, according to a Rock Health report.
Three things to know:
1. U.S. digital health startups collectively raised $7.4 billion in 2019, approximately a 10 percent drop from the $8.2 billion raised in 2018.
2. The 2019 funding spans 374 deals averaging $19.8 million each, compared to the 380 deals completed in 2018 with an average value of $21.6 million. Per Rock Health, 2019 was the first year the number of deals dropped since the digital health venture fund began tracking investments in 2011.
3. The majority of digital health investors in 2019 were repeat investors: nearly 60 percent, a new high. More than half of venture capitalists have continually invested in the sector since 2014, representing growing confidence in digital health as a whole.
View the full report here.