Health IT, Startups

Report: As Q1 digital health investment rises to $1.8B, new names appear in top 6 investor ranks

Deal volume slowed in the first quarter of the year, but the amount of the investments climbed with$1.8 billion invested over 100 deals.

This post has been updated from an earlier version.

Source: StartUp Health

Source: StartUp Health

In the first three months of 2016, StartUp Health’s digital health report notes that two venture investors surged to the top six for the first time: University of Pittsburgh Medical Center with four investments and JAZZ Venture Partners with three. It comes as deal volume slows but investment rounds climb, with a total of $1.8 billion invested over 100 deals.

Although health insurance startup Oscar’s $400 million investment was the largest in the quarter and accounted for more than 20 percent of the total amount raised for the quarter, it was one of four deals that topped $100 million. Oncology analytics business Flatiron Health raised $175 million.  Genomic sequencing business Guardant Health, mindmaze, which uses virtual reality to treat neurologial disorders, and Healthline, a consumer health information business, each raised $100 million.

Big data analytics, illustrated by companies like Flatiron, generated the most investment with eight deals raising $286 million. Medical devices came in second with 11 deals raising $198 million. This either illustrates the continued crossover of medical device companies with digital health or maybe the need for a rethink of including these deals in a digital health report since they frequently have a longer path to market and their products are often more complex. The patient experience category had the most deals at 20, which raised $195 million.

Digital therapeutics dominated JAZZ Venture Partners’ investment priorities in the first quarter. The company’s website articulates its interest in investing in experimental technology that improves human performance crossing into areas such as virtual and augmented reality and neuroscience. It invested in Pear Therapeutics, which has made treatment of substance abuse with digital therapeutics a priority, as well as Akili Interactive Labs, and Halo Neuroscience.

UPMC invested in Lantern, a company using technology to integrate mental health into primary care, big data analytics business Health Catalyst, and remote care platform Vivify Health. It also took a majority stake in clinical decision support software business medCPU.  In an interview in February, UPMC Chief Innovation Officer Dr. Rasu Shrestha said it invests in technologies that will have a significant impact as far as how the future of healthcare will be written out.

Source: StartUp Health

Source: StartUp Health

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