StartUp Health Insights 2016 Midyear Report

The digital health market broke historic records for midyear funding as investment reached $3.9B. Seed and Series A financing rounds are substantially equal in number, demonstrating a still thriving early-stage innovation landscape. Most funding dollars are being funneled to Series A rounds, creating opportunities for companies with validated solutions. 

1. Rethinking Insurance: Oscar has continued to blaze an innovative trail through traditional health insurance as a new generation of mobile-literate, “young invincibles” look for affordable, engaging and simple solutions for their insurance. Similar models, successful in their own ways, have followed suit as three of the top 10 deals year to date focused on tech-centered insurance.

2. Asia & the Middle East Make Their Mark: China, India and Israel have been adopting digital health solutions in significant ways over the last several years, rolling out massive technologies for populations facing nuanced, yet substantially similar, health challenges around the world.

3. Early-Stage Ecosystem: There was an almost even amount of Seed and Series A deals in the first half of 2016, making up almost 65 percent of all funding rounds, though Series A deals garnered more capital. Companies receiving Seed financing are burdened with proving their model works on little capital, while opportunities for Series A financing remain abundant.

4. Publicly Traded Pioneers: As Evolent Health climbs back to its original IPO price, shareholders wonder what this means for other publicly traded digital health companies and those considering public exits. While the real value of what these companies do may still be left for most to realize, the perceived value still remains lower than anticipated for many of these early innovators.

5. Global Innovation: More than 7,600 startups around the world are developing solutions in digital health, based on StartUp Health Insights data. Innovation continues to thrive as borders between technologies, talent and nations disappear to spur real change in medical systems at home and abroad.

Download the 2016 Midyear Report