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.