• According to a new report from Rock Health, this year it has already broken records for financing digital health. In the third quarter, $ 9.4 billion was raised. This has already broken the previous record for most dollars raised in a year: $ 8.2 billion in 2018.
The average transaction size in 2020 was $ 30.2 million, also a record – and about 1.5 times the average of $ 19.7 million last year, given continued interest in the pandemic. Encourage digital health consumers and invest more US dollars in the industry.
• Mega deals have skyrocketed. 24 digital health companies entered into deals worth $ 100 million or more in the third quarter, primarily focused on telemedicine, R&D, fitness, and wellness services. In this category, Zwift had the largest fundraising round with $ 450 million in a C series.
As it becomes clearer that the new realities created by the pandemic will not be short-lived, investors are investing money in digital health, one of the few sectors that have actually benefited from COVID-19. US startups raised $ 4 billion in the third quarter and at least $ 2.4 billion in each prior quarter.
Rock Health said the industry was “on the verge of momentum” following unprecedented consumer demand. “As the pandemic continues to spread, we look forward to the industry uniting to build on the progress already made this year and continue on this path,” the report said.
The analysis coincides with others on digital health financing and with speakers at last month’s CB Insights conference. There, analysts noted a particular interest in mental health platforms, as people report increased anxiety and depression during the pandemic.
CB Insights also said health care investments were robust overall in 2020. Global industry funding hit a record $ 18.1 billion in the second quarter.
So far this year, on-demand health services like prescription delivery and emergency home care have closed a total of 48 deals and invested $ 2 billion, according to Rock Health. The largest single transaction was $ 250 million for Alto’s prescription delivery service.
The funding guarantee comes from several digital healthcare companies that have gone public in recent months, trying to seize the moment to stimulate growth.
Telemedicine provider Amwell filed an IPO of Google in August for a $ 100 million prize. Other telemedicine companies Hims & Hers and SOC Telemed have submitted blank check offer to the stock exchange this year.
This comes on top of the industry’s first emergency in August when telemedicine giant Teladoc announced it had acquired Livongo’s chronic care management platform for $ 18.5 billion. This agreement is expected to be concluded by the end of the year.