MASSDEVICE ON CALL — Medtech’s loss was digital health’s gain in 2013, with a slump in medical device funding potentially contributing to a major boost in investment for digital health startups.
Digital health funding grew faster than for any other sector, including software, according to a Rock Health analysis. The report included only companies who raised $2 million or more, counting 186 in total.
The biggest digi-health winners were those supporting electronic health records and work-flow support, which accounting for $245 million, followed by big data applications, which accounted for $161 million. Digital medical devices came in 3rd with $146 million raised, and wearable biosensing devices came in 4th with $136 million raised. Lower on the list were population health management platforms, with $126 million, and healthcare consumer engagement programs, with $119 million.
Early-stage deals dominated the year, with 51% of funding granted during seed stages or series A raises, and serial investments tripled in 2013, compared with 2012, according to the report.
More than 300 separate investment firms or angels participated in digital health deals last year, and California’s Silicon Valley established itself as the undisputed hub of digital health innovation and investment.
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