VC Firms Invested More Money in Fewer Digital Health Deals

By Fred Donovan

July 17, 2019 - Global venture capital (VC) firms invested more money in fewer digital health deals in the first half of 2019 compared to the same period last year, according to the latest stats from Mercom Capital Group.

VC firms invested $5.1 billion in 318 digital health deals in the first half compared to the $4.9 billion in 383 deals in first half of 2018.

Large digital health deals in the 2019 first half included Dassault Systemes' acquisition of Medidata for $5.8 billion, Golden Gate Capital's purchase of a 51 percent stake in Ensemble Health Partners for $1.2 billion, Nordic Capital's purchase of a majority stake in ArisGlobal for $700 million, JPMorgan Chase's acquisition of InstaMed for more than $500 million, Thomas H. Lee Partners' acquisition of Nextech Systems for $500 million, and Hill-Rom Holdings' purchase of Voalte for $195 million.

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The top-funded digital health categories in first half of 2019 were analytics with $1.1 billion, telemedicine with $896 million, mHealth apps with $627 million, wellness with $341 million, healthcare booking with $336 million, clinical decision support with $287 million, wearable sensors with $285 million, mobile wireless with $264 million, and healthcare benefits with $208 million.

In the second quarter of 2019, VC funding totaled $3.1 billion in 169 deals compared to the $2 billion raised in 149 deals in first quarter.

In the second quarter, total corporate funding in digital health companies, which includes VC, debt, and public market financing, reached $3.3 billion compared to $2.2 billion in the first quarter.

In the first half of 2019, there was one initial public offering for $179.4 million.

There were 73 early stage deals in the second quarter of 2019 compared to 48 deals in first quarter.

More than 820 investors participated in digital health funding deals in the first half of 2019. There were 450 investors that participated in funding deals in second quarter of 2019 compared to 371 investors in the first quarter.

In first half of 2019, there were 91 digital health merger and acquisition (M&A) transactions compared to 116 in the same period last year. In second quarter of 2019, there were 46 M&A transactions compared to 68 M&A transactions in the same period last year.

In total, digital health companies have received over $40 billion in VC funding deals since 2010, according to Mercom.

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VC Firms Invested More Money in Fewer Digital Health Deals

Global venture capital (VC) firms invested more money in fewer digital health deals in the first half of 2019 compared to the same period last year, according to the latest stats from Mercom Capital Group.

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