Q1 2014 brought with it a new record in digital health venture funding.
According to the latest data from Rock Health, not only did January set a record month in both deals and dollars, the first quarter of 2014 set an all-time record for digital health funding in a single quarter.
“Nearly $700M in funding poured into the space, paving the way for the biggest year ever for the industry,” the report summary reads. “Q1 2014 experienced a mind blowing 87% year-over-year growth versus Q1 2013.”
Investors are growing increasingly comfortable with digital health, and the deal sizes are growing in response. The average deal size this quarter increased to $13.1M, up from an average of $10.0M for all 2013 deals. Some new categories broke onto the top charts this quarter, joining the returning heavyweights, analytics and big data. Key themes we saw thrive in the first quarter were improving patient care and enterprise cost-savings.
Rock Health’s end-of-year report for 2013 published three months ago confirmed that $1.92 billion in funding poured into digital health last year. All told, funding has climbed over 100% since 2011.
There were 195 digital health deals last year worth over $2 million each.