Investments in Digital Health More Than Doubled in 2014

Companies invested $6.5B on digital health in 2014, compared to $2.9B in 2013 - a 125% increase, according to a report issued by StartUp Health, LLC.

Using publically available data, StartUp Health analyzed the market's top deals in digital health funding in 2014. The report indicates that changes in health care regulations, including new incentives and penalties for providers, as well as rising health care costs are serving as catalysts for innovation.

The subsectors of digital health that received the largest amounts of private funding in 2014 include:

  • Big Data/Analytics $1.5B
  • Population Health $1.1B
  • Healthcare System Navigation $975M
  • Diagnostics $962M
  • Consumer Health $880M
  • Practice management $783M
  • Payer/Insurance $699M
  • Workflow improvement $681M
  • Genomics $632M
  • Clinical Research $624M

Five companies received almost 20% of the funding for the year and the top 10 deals represent one-third of all funding in 2014. The top five most active US metro areas in 2014 were:

  • San Francisco Bay Area: 81 deals - $1.04B  
  • New York City: 44 deals - $722M
  • Los Angeles: 12 deals -  $693M
  • DC/MD: 17 deals - $577M 
  • Boston: 36 deals -  $383M 

This significant uptick in funding shows that the ruptured health care industry presents a big opportunity for entrepreneurs and investors, as companies across the globe continue to develop and invest in innovative digital solutions.

If you have questions about this issue or other health care-related issues, please call Attorney Jillian Jagling at 401.824.5100 or email [email protected] We welcome your comments, questions and suggestions.

No Comments

Leave a comment
Comment Information

Contact Our Firm And Schedule A Consultation

Work with our experienced team of lawyers. Call 866-353-3310 or email us today to schedule a consultation.

View Office Locations

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Email Us For A Response

Rhode Island
Northwoods Office Park
1301 Atwood Ave.
Suite 215 N
Johnston, RI 02919

Toll Free: 866-353-3310
Phone: 401-824-5100
Fax: 401-824-5123
Map & Directions

One International Place
Suite 1400
Boston, MA 02110

Toll Free: 866-353-3310
Fax: 866-353-5020
Map & Directions

Boca Raton Office
Peninsula Plaza
2424 North Federal Highway
Suite 204
Boca Raton, FL 33431

Phone: 561-362-2030
Fax: 866-353-5020
Map & Directions

901 Main Street
Suite O
Osterville, MA 02655

Phone: 508-420-7159
Fax: 508-420-7162
Map & Directions

GPS Directions to this office: 555 Valley Street, Providence, RI 02908