2015 Midyear and Q2 Summary
The digital health market continues to mature as evidenced by several defining deals in the first half of 2015, including Zenefits’ $500M round and Fitbit’s pivotal IPO. The market is rallying around consumer health, wellness and the rise personalized health. Startups hoping to succeed should focus on personalized solutions that move beyond “me-too” features.
- Signs of a Maturing Market: Although we are seeing approximately the same amount of capital flow from investors to startups this year as we did in the first half of 2014, overall median funding amounts have increased with dollars directed at startups in hot markets in later stages. As expected, digital health investors are learning what works and what doesn’t.
- A Diverse Investor Landscape: Continuing the trend of 2014, corporate VCs and traditional venture investors are placing significant bets within digital health with two of the top four investors this year being corporate venture arms. Additionally, the investors seem to be stage agnostic, with the top investors participating in Seed to Series D rounds.
- Personalized Medicine Gains Traction: With the advent of the $1,000 genome and new government initiatives positioned to support the greater precision medicine mission, a surge in genomic analytics companies has emerged focused on databasing, analyzing and discovering actionable insights pertaining to congenital disease treatment.
- The 50+ Market Stands Its Ground: Despite a slow start to 2015, the 50+ market has continued to stay proportional relative to all digital health funding. As chronic disease grows more prevalent within the aging population, digital health solutions continue to play a significant role in meeting healthy living needs of all ages.
- 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 blur to spur real change in medical systems at home and abroad.