Genomics and Digital Medical Devices Lead Health Technology Funding

We’ve previously found that health technology funding is on an overall upward trend. Now we are taking a closer look on our health technology research platform to compare funding by category. Our analysis reveals two observations:

  • The Genomics category leads the sector in Q2 funding
  • The Digital Medical Devices category leads the sector in all-time funding

We’ll highlight these observations with some graphics and discussions below.

The Genomics Category Leads Health Technology In Q2 Funding

To start off, let’s review the amount of funding raised this quarter by each category within health technology.

Health Technology Latest Quarter Category Funding
Health Technology Latest Quarter Category Funding

The above graphic highlights that the Genomics category leads the sector in Q2 funding with just under $1B. Its funding is 1.4 times the funding of the next category, Digital Medical Devices at $700M.

Genomics companies utilize human genome data for analytics, prevention, and treatment. Some example companies in this category are 23andMe, Helix, and Counsyl.

Let’s now investigate how these categories’ funding compare with each other historically.

The Digital Medical Devices Category Leads the Sector in All-Time Funding

The graph below shows the all-time funding for different health technology categories. The Q2 funding and growth rates of these categories are also highlighted.

Health Technology Total Category Funding
Health Technology Total Category Funding

As the bar graph indicates, the Digital Medical Devices category leads the sector in total funding at almost $14B. The Genomics category follows in a close second place with an all-time funding of $13.6B. These two categories’ funding are more than twice the funding of the next category, IoT Fitness at $6.6B.

Digital Medical Device companies build IT-enabled medical and diagnostic devices for doctors. These devices include detection equipment, monitoring equipment, and surgical tools. Some example companies are Signostics, MediBeacon, Stimwave, and AliveCor.

In summary, it’s clear that the Genomics and Digital Medical Devices categories are leading the sector in funding. Let’s see how the the rest of 2018 shapes up for health technology!

To learn more about our complete health technology report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Health Technology Startup Highlights  – Q2 2018

Here is our Q2 2018 summary report on the health technology startup sector. The following report includes a sector overview and recent activity.

To learn more about our complete health technology report and research platform, visit us at www.venturescanner.com or contact info@venturescanner.com.

Health Technology Sector Starts Maturing

As we previously noted, health technology funding is experiencing robust growth. We’ve now gone one level deeper in our analysis on our Health Technology Report and Research Platform and determined that the health technology sector is starting to mature.

This conclusion comes from two key observations:

  • Funding amount percentages showed a slight shift to later stages
  • Funding count percentages showed a clear shift to later stages

We’ll explain these key observations with some graphics and discussions below.

To help set the stage, the graphic below highlights health technology funding amounts over time. As you can see, the sector’s overall funding demonstrated consistent growth.

Health Technology Funding by Quarter
Health Technology Funding by Quarter

Health Technology Funding Amount Percentages Shifting Slightly to Later Stages

Let’s examine the health technology funding amounts by round as a percentage of the total funding amount by year.

Health Technology Funding Amount Percentages
Health Technology Funding Amount Percentages

The above graph indicates that there has been a slight shift to later-stage funding. In 2012, Seed and Series A funding amounts accounted for around 25% of total funding. By 2017, that total had dropped to under 20%. Consequently, the funding amounts from Series B onward grew from around 75% of total funding to over 80%.

Would the funding count percentages confirm this trend? Let’s examine in the the next section to find out.

Health Technology Funding Count Percentages Clearly Shifting to Later-Stage Events

The below graph shows the health technology funding event counts by round as a percentage of total events.

Health Technology Funding Count Percentages
Health Technology Funding Count Percentages

This graph paints a clearer picture of the funding shift than the previous funding amount graph. In particular, Seed funding count percentage decreased by more than half its size from 53% to 23%. The funding count percentages in all other rounds increased by various magnitudes from 2012 to 2017.

Conclusion: Health Technology Sector Matures As Funding Shifts to Later Stages

In summary, we have seen health technology funding amounts and funding event counts shift from the early-stage rounds to mid and late-stage rounds. These observations led us to conclude that the health technology sector is starting to mature.

To learn more about our complete health technology report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

The State of Health Technology in Six Visuals

We cover many emerging markets in the startup ecosystem. We previously published posts that summarized Financial Technology, Internet of ThingsBitcoin, MarTech, Artificial Intelligence, Retail Technology, and Connected Transportation in six visuals. This week, we do the same with Health Technology. At this time, we are tracking 863 Health Technology companies across 23 categories, with a combined funding amount of $15.5B. To see all of our Health Tech related posts, click here!

The six Health Technology visuals below help make sense of this dynamic market:

  1. Market Overview: Breakdown of Health Technology into categories.
  2. Number of Companies Per Category: Bar graph summarizing the number of companies in each Health Technology category.
  3. Average Funding By Category: Bar graph summarizing average company funding per Health Technology category.
  4. Venture Funding in Health Technology: Graph comparing total venture funding in Health Technology to the number of companies in each category.
  5. Global Breakdown of Health Technology: Heat map indicating where Health Technology companies exist.
  6. Median Age of Health Technology Categories: Bar graph of each Health Technology category by median age.

This sector covers companies that combine IT with healthcare to enhance well-being. This includes digital technologies and services such as mobile connectivity, biometric sensors, cloud computing, social networking, robotics, etc. that are affecting all fronts of healthcare such as hospital management, doctor-patient relationships, peer-to-peer support groups, and personal fitness.

Below you’ll find our Health Tech sector map as well as the categorical breakdown of the sector.

1. Health Technology Market Overview

healthtech1

Clinical Administration and Backend: Services that foster management of administrative tasks such as scheduling, patient transfers, billing, compliance, etc.

Digital Medical Devices & Diagnostics: New generation of IT-enabled medical devices and diagnostic tools for use by doctors and other clinical staff.

Population Health Management: Services to manage healthcare issues for groups of people such as corporate employees.

Genomics and Personalized Medicine: Services that utilize human genome data for analytics, disease prevention, and the like.

Electronic Health/Medical Records: Services that create or manage EHR/EMR (Electronic Health/Medical Records) to improve efficiency/effectiveness of medical practice.

Doctor Network and Resources: Social services that allow doctors to connect with each other to get in dialogue and/or access their expertise.

Medical Big Data: Big data and analytics for medical applications.

IoT Health Care: Internet of Things (IoT) focused on consumer and/or at-home health care solutions.

Doctor and Healthcare Service Search: Services that allow patients to search for doctors, healthcare plans, and other healthcare services.

Remote Monitoring and Family Care Management: Services that allow families and medical professionals to monitor and manage those in care (ie. senior citizens).

teleHealth: Services that allow remote treatment and/or consultation between doctors and patients.

Online Health Destination Sites: Websites providing health-related information and resources.

Health Insurance and Payments: Health insurance exchanges, benefits and patient payment management platforms focused on providing more efficient workflow and greater transparency.

Patient Engagement and Education: Services and platforms such as In-Hospital multimedia systems and patient relationship management services.

Mobile Fitness/Health Apps: Mobile apps that keep track of fitness activities, provide health resources, training programs, etc.

IoT Fitness: Internet of Things (IoT) focused on personal fitness and wellness solutions.

Online Health Communities: Social services among patient groups and medical professionals.

Healthcare Marketing and Campaign Management: Services for hospitals, insurance agencies, and other healthcare services to identify and target potential customers.

Healthcare Mobile Communications/Messaging: Mobile communications services dedicated for hospital use by doctors, nurses, etc.

Gamification of Health: Application of game elements to promote behavior-changing health and wellness.

Healthcare Robotics: Robotics application for healthcare such as prosthetics, remote treatment, etc.

Healthcare Startup Incubators and Accelerators: Investor programs that fund and support Digital Health startups.

2. Number of Companies Per Category

health2

The bar graph above summarizes the number of companies in each Health Technology category to show which are dominating the current market. Currently, the “IoT Health Care” category is leading the way with a total of 123 companies, followed by “IoT Fitness” with 97 companies.

3. Average Funding By Category

health3

The bar graph above summarizes the average company funding per Health Technology category. The “Health Insurance/Payments” category leads the way with an average of $58.5M per funded company. The Health Insurance/Payments category includes health insurance exchanges, benefits and patient payment management platforms focused on providing more efficient workflow and greater transparency.

4. Venture Investing in Health Technologies

health4

The graph above compares total venture funding in Health Technology to the number of companies in each category. The “Genomics & Personalized Medicine” and “Health Insurance/Payments” categories seem to be the ones with the most traction.

5. Global Breakdown of Health Technology

health5

The following infographic is an updated heat map indicating where Health Technology startups exist across 30 countries and 327 cities. Currently, the United States is leading the way with 706 companies. The United Kingdom is in second with 25 companies followed by Canada with 24.

6. Median Age of Health Technology Categories

health6

The bar graph above summarizes Health Technology by median age of category. The “Electronic Health Records” category has the highest median age at 9 years, followed by “Clinical Admisnitration” and “Online Health Destination Sites” at 8 years.

As Health Technology continues to develop, so too will its moving parts. We hope this post provides some big picture clarity on this booming industry.

Venture Scanner enables corporations to research, identify, and connect with the most innovative technologies and companies. We do this through a unique combination of our data, technology, and expert analysts. If you have any questions, reach out to info@venturescanner.com.