Quick reads

For new and evolving industries, established players come to the forefront quite quickly. However, digital health has proven to be an exception to this trend, as allocations of funding dollars by subcategory have shifted year-to-year and even quarter-to-quarter. The six most popular subcategories in digital health in 2016 are: Analytics/Big Data ($309M), Wearables/Biosensing ($217M), Population Health Management ($184M), Personal Health Tools/Tracking ($132M), EHR/Clinical Healthflow ($127M), and Digital Medical Devices ($122M). As it currently stands, these six subcategories constitute more than 50% of all digital health funding in 2016.

Top Subcategories of Digital Health 2016

Top Subcategories of Digital Health 2015

Most popular subcategories within Digital Health by Venture Funding: 2015 vs. 2016 [RockHealth]

While it is possible that certain areas of digital health continue to rise in popularity, as the Wearables subcategory has over the past few years, close observation of the list reveals a significant amount of volatility from year to year. For example, only half of the list (Analytics/Big Data, Wearables/Biosensing, and EHR/Clinical Health Flow) survived from 2015 to 2016. The volatility is even more evident when comparing quarterly trends from 4Q15 and 1Q16, where only two of the six subcategories (Wearables/Biosensing and Healthcare Consumer Engagement) carried over into the new year. Overall, Wearables was the only subcategory that managed to stay on the list for six consecutive quarters without losing much traction, as it still continues to see growth throughout 2016. The same cannot be said for other subcategories to the likes of Analytics/Big Data and EHR/Clinical Healthflow even though these are hot topic industries incentivized and promoted by government and other institutions.

Sources

Image Source: http://www.dreamit.com/journal/2016/9/6/what-were-reading-in-digital-health-news

Mom, Mitchell. “Q1 Update: Unlike Tech, 2016 Digital Health Funding on Record pace Again | Rock Health.” Rock Health. N.p., n.d.
Web. <hhttps://rockhealth.com/reports/q1-update-2016-digital-health-funding-on-pace-to-surpass-2015/>.

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