Venture Funding for Web 2.0, Mobile Health Apps Jumped 44 Percent in 2011

It’s been revealed that more than $439M has been poured into 70 different Web 2.0 healthcare startups that develop mobile health apps and tools for online social networking and collaboration in 2011.

In 2010, a little more than $305M was raised for 43 different deals, meaning 2011 showed a 44% increase in dollars invested and a 63% increase in deals funded compared to 2010.  “We are at the very early stages of an evolution in the entire healthcare system,” Jessica Canning, global research director for Dow Jones VentureSource, told InformationWeek Healthcare. “We are essentially witnessing the democratization of healthcare where detailed information is being collected both from healthy people as well as individuals trying to improve their physical wellness.”

Investment in so-called “Web 2.0” startups represent a wide variety of healthcare technology companies, ranging from patient tracking and personal fitness to technology to help share information between patients and doctors, and even secure communication platforms.  Some higher-profile investments from 2011 include $30M injected into AirStrip Technologies, and a $6.5M series B round injected into Keas — a startup developing a social game for the workplace to promote health and wellness.

“These companies are opening up a whole new world that people are just beginning to explore,” Canning said. “This is a huge market with relatively little competition and it will be interesting to see how quickly health delivery organizations and consumers adopt the technology. I think it’s safe to say that this area will only continue to grow relatively quickly.”

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