Quick reads

Since the early 2010’s, new government legislation, policy changes and technological advances have merged to accelerate change in the digital health and healthcare technology space. These influences come at a time when the traditional quantity-based care model is shifting towards a quality-based model, placing the emphasis directly on the needs of a patient or consumer rather than the services of a provider. The combination of these trends has paved the way forward for healthcare innovation, as old systems and processes are going digital to adapt to the new needs of an evolving healthcare marketplace.

As a result on this trend, private equity and venture capital firms are diversifying their portfolios and investing more heavily in digital health in recent years. There has been a massive accrual in the number of incubators and accelerators that are breeding successful digital health start-ups. Simultaneously, institutional players in the pharmaceutical, technology and insurance verticals are seeking out value-add investments and acquisitions in digital health more than ever before to stay ahead of the curve and create additional sources of revenue.

To get a better sense of the ongoing changes in digital health and capture insights into the industry’s funding trends, we identified four metrics that we believe are critical in assessing its growth over time:

1. Digital Health Venture funding over the past year
2. Exit Strategy: Quantity & quality of M&A deals vs. IPOs
3. Deal Staging: Venture funding as a function of company maturity
4. Deal volume by subcategory within digital health

Articles that follow will cover each topic in more depth.

Image source: http://healthbizinforma.com/digital-health-funding-2015-year-in-review/

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