Rock Health: Nearly one-third of H1 digital health investors were first timers

Of the 330 investors that allocated funding to digital health companies in the first quarter, just under one third or 108 were new to the sector.

Digital health startups had a pretty active first half as we previously reported. A new Rock Health report sheds some more light on deal flow. Here are some of the more interesting findings.

Of the 330 investors that allocated funding to digital health companies in the first half, just under one-third or 108 were new to the sector. It speaks to the level of interest in the healthcare sector, the fact that there are so many growth stage companies to choose from and confidence that areas such as telemedicine and big data are continuing to gain acceptance and will become a permanent part of the healthcare landscape.

There were lots of mergers and acquisitions in digital health in the first six months of the year — 95 to be exact. It reflects both the growing maturity of the sector, the fact that there’s enough talent ability of companies to acquire services interest in growth through acquisition and the inevitable consolidation in the sector. Although at 62, digital health companies dominated the among companies making these acquisitions, many came from outside of digital health. Medical device companies accounted for five of these acquirers and three providers made acquisitions. Technology companies were behind 10 of those M&A deals.

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About 136 digital health companies raised more than $2 million, although that only includes disclosed US deals over $2 million.

Despite the robust pace of digital health deals raising $2.1 billion total, the first half of 2015 has trailed last year’s record numbers.

Update The report maintained that single deals propelled some of the six categories that accounted for more than half of digital health deals in the first half. Jawbone, for example secured a $300 million loan from BlackRock in the wearables category. But, as one reader noted below, that’s quite different than an equity investment. Virgin Pulse was a big presence in enterprise wellness. Doctor on Demand also raised one of the largest Series B rounds in digital health history, the report noted.

Here’s a breakdown of investing by category.

Wearables: $387 million

Big data and analytics: $212 million

Consumer engagement: $176 million

Telemedicine: $169 million

Employer wellness: $128 milion

EHR and clinical workflow: $74 million

Photo: Flickr user Peasap