Compared to its corresponding months in 2015, this past January and February has seen nearly double the digital health funding, indicating confidence in healthcare technology, according to StartUp Health.
New York City-based accelerator, incubator, and seed fund, StartUp Health kicked off the Venture+ Forum at the HIMSS 2016 (@HIMSS) conference, with new updates on the digital venture capital and funding landscape for healthcare technology start-ups.
“The conditions are aligned for the reimagination of healthcare.” Hanin indicates that five factors are causing 2016 to be particularly rosy for healthcare technology:
- Healthcare reform
- Needs in chronic disease, aging & cost
- The rise of digital health technologies
- The golden age of entrepreneurship
And, there are new players, too.
“Engineering firms are now going into venture capital,” said Hanin. “They look into how to scale, how to grow, but don’t necessarily know about healthcare.”
Hanin said that investments are rising, particularly in series C funding, indicating a shift in venture capital maturity. And, more deals have occurred in Los Angeles than biotech stronghold Boston. It remains to be seen, however, whether this $391M is a one-year blip or the launch of a new healthcare technology investment hub in the United States to join the ranks of San Francisco’s $2.0B, New York City’s $612M, and Boston’s $378M in deals.
With approximately 129 companies and 250 founders, StartUp Health has a diverse array of companies. They declared that they are “transforming the entire care continuum.”
Many of the slides presented were based on their most recent publicly-available report at http://www.startuphealth.com/content/insights-2015. These insights include:
- Deal distribution shifting to mid- and late-stage deals indicates a maturing market, with funding in larger amounts.
- The most active investors are still supporting early-stage innovation. StartUp Health counts approximately 600 organizations providing financing and expertise.
- Funding is supporting more business-to-consumer (B2C) and business-to-business-to-consumer (B2B2C) ventures vs. ventures that paid attention only to enterprises.