CB Insights reported record funding for global healthcare and digital health, among other milestones during the third quarter.
Global healthcare investments to private companies hit a new quarterly record of $21.8 billion in the third quarter of this year, with a total of 1,539 equity investments in the three-month period growing 18% from the previous quarter. North American companies raised almost $13 billion in the quarter, marking the highest total on record and a 21% increase from the previous quarter.
Digital health, which was thrust into the fore because of its relevance during the COVID-19 pandemic, grew in equity funding by 73% to reach $8.4 billion in the third quarter, which is another record. An all-time high of 23 mega-rounds played a large part in that, according to the analysis.
However, New York saw a 20% decline in digital health deal activity, with Massachusetts growing by 33% and California increasing by 12% in that space.
Medical devices also hit a quarterly high during the three-month period, with medical device companies raising $5 billion over 478 deals, marking a 20% jump from last quarter and a new quarterly high, while it’s a whopping 63% growth year-over-year.
Amid the race to develop vaccines and therapeutics for COVID-19, drug research & development funding saw 38 deals in the quarter, with nearly $1.5 billion in financing driven by five mega-rounds over the three months.
The quarter saw 38 deals and nearly $1.5B in funding to the space. This funding total was largely driven by 5 mega-rounds, including AI drug discovery company XtalPi’s $319M round and clinical research platform Taimei Technology’s $176M round.
Analysts highlighted robotic surgery as a space that continued to raise capital despite the deferral of elective procedures that has been brought on by the pandemic, while novel neuromodulation devices also received a mention for gaining steam with investments and clinical milestones.
Medtronic’s dealings over the last quarter were another major highlight, according to analysts, with big plays in the diabetes and neurosurgery markets. The medtech giant’s acquisition of Medicrea was highlighted, as was the announcement of its intention to acquire insulin pen maker Companion Medical.
