Digital Health investments are at new peak levels for 2017, and they show no signs of slowing down in the coming year. Digital health investments across the United States reached around $5.8 billion for 2017. This is a drastic increase from 2016 where the majority of the funding came from a $1.41 billion venture funding boost in the first quarter.
Digital health is climbing because many new startups are beginning to follow this trend and shape the future of the healthcare industry. With over 191 deals throughout Q1 that took place in 2017, the total amount of funding from Q1 in 2017 versus 2016 was over double.
Investors are becoming much more confident in the idea of digital health, and this means more rounds of funding for many startup companies in their late-stage rounds. There were over eight deals that totaled more than $100 million in funding for the year 2017. Perhaps one of the greatest examples is a disease diagnosis application that received over $279 million in funding.
Deals are also being made through investments and acquisitions. Roche, for example, acquired Flatiron Health for over $1.9 billion and there are a number of companies like Practise fusion that was also bought out for 100 million. Eclinical works went for a $155 million settlement just last year.
Health-care providers do continue to seek out funding and are you are future of workflow and more. The majority of health-care startups are actually selling their technology to many providers today, and this will lead to investment in the future.
Around 60% of the companies that were founded in 2016 were immediately sold to providers, so the rate at which companies are investing shows no signs of slowing down.
The investment isn’t all happening in the United States either. International hubs and companies are working to improve their own emerging markets for the future of digital health. Israel, for example, was responsible for the creation of over $146 million in funding over 17 deals. Technology hubs like Toronto, Paris, new York, Bengaluru and others have also emerged as an emerging leader with over 100 million in funding too.
The number of investors worldwide that are seeking out this type of technology is growing considerably. In the year 2017 worldwide investors increased over 37% from the previous year with over 1200 various investment deals. These investors are categorized as individuals who are interested in large-scale million dollar ventures concerning digital health. With the same trends set to continue and nearly another 40% increase in investors expected over the next year, the world is turning its focus to digital health and investment in the future of our longevity.
Digital health investments are a trend that we cannot afford to ignore especially if you are entering into the healthcare industry. Proper training and development of future applications could lead to the chance that your skills to be adapted or that your creation could be one of the next great improvements to the healthcare industry.
Asif Razzaq is the CEO of Marktechpost Media Inc.. As a visionary entrepreneur and engineer, Asif is committed to harnessing the potential of Artificial Intelligence for social good. His most recent endeavor is the launch of an Artificial Intelligence Media Platform, Marktechpost, which stands out for its in-depth coverage of machine learning and deep learning news that is both technically sound and easily understandable by a wide audience. The platform boasts of over 2 million monthly views, illustrating its popularity among audiences.