The health technology industry has seen $84B in total all time funding. Let’s analyze the investors financing the health technology sector and identify the most active firms.
The graphic below highlights health technology investors based on the number of investments made in the sector. If an investor participates in two investment rounds in the same company (such as a Series A and Series B), that would qualify as two investments for this analysis.
As the graphic demonstrates, New Enterprise Associates has made the most bets in the health technology sector with 88 investments. Khosla Ventures follows with 80 investments. Examples of companies that New Enterprise Associates has invested in include Bright Health, Paladina Health, 23andMe, and Collective Health. The two CVCs rounding out the list include GE Ventures and GV.
Now that 2018 is complete, let’s examine how funding in health technology compares to previous years. The graphic below shows the total annual health technology funding amounts over time.
As the graphic demonstrates, 2018 experienced the highest health technology funding on record at $17.2B. It constitutes a slight 1% increase from the previous year’s funding. Some of the largest funding events in 2018 include a $550M round for Peloton, a $500M round for WeDoctor, a $500M round for Moderna Therapeutics, and a $375M round for Oscar Health. Over the past 5 years, health technology funding grew at a CAGR of 35%. It’ll be interesting to see if its funding will dip in 2019 or reach even higher levels.
This blog post examines the different components of the health technology ecosystem. We will illustrate what the categories of innovation are and which categories have the most companies. We will also compare the categories in terms of their funding and maturity.
Digital Medical Devices Is the Largest Health Technology Category
Let’s start off by looking at the Sector Map. We have classified 2250 health technology startups into 22 categories that have raised $81 billion. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.
We see that Digital Medical Devices is the largest category with 307 companies. These companies build IT-enabled medical and diagnostic devices for doctors. These devices include detection equipment, monitoring equipment, and surgical tools. Some example companies include Signostics, MediBeacon, Stimwave, and AliveCor.
Let’s now look at our Innovation Quadrant to find out the funding and maturity of these categories in relation to one another.
The Pioneers Quadrant Has the Most Health Technology Categories
Our Innovation Quadrant divides the health technology categories into four different quadrants.
We see that the Pioneers quadrant has the most health technology categories with 10. These categories are in the earlier stages of funding and maturity. The Established quadrant has 7 categories that have reached maturity with less-than-average financing. The Disruptors quadrant contains 4 categories that have acquired significant financing at a young age. The Heavyweights quadrant contains one category, Healthcare Robotics. This category has reached maturity with significant financing.
Conclusion: The Digital Medical Devices Category Leads Health Technology
As the analysis above demonstrates, the Digital Medical Devices category leads health technology in total companies. We’ll see what’s in store for the health technology landscape in the new year!
We previously highlighted that health technology funding had the highest quarter on record in Q3 2018. This blog post will take a closer look at the funding trends within the individual health technology categories. Per our analysis, we notice two key takeaways:
The IoT Fitness category leads the sector in Q3 funding
The Digital Medical Devices category leads the sector in all-time funding
We’ll highlight these takeaways with some graphics and discussions below.
The IoT Fitness Category Leads Health Technology In Q3 Funding
To start off, let’s review the amount of funding raised this quarter per category within health technology.
The above graphic highlights that the IoT Fitness category leads the sector in Q3 funding with $0.9B. The Digital Medical Devices category follows in the second place with $0.8B.
IoT Fitness companies create connected devices that track fitness and exercise metrics. Such devices include healthy eating trackers, exercise tracking wristbands, and smartphone-controlled shoes. Some example companies in this category include Moov, Sensoria, Striiv, and Atlas Wearables.
Let’s now investigate how the healthtech 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 the various health technology categories. The Q3 funding and growth rates of these categories are also highlighted.
As the bar graph indicates, the Digital Medical Devices category leads health technology in total funding at $15B. The Genomics category follows in the second place with $13B in total funding.
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, the IoT Fitness category leads health technology in Q3 funding. The Digital Medical Devices category leads the sector in total funding.
The Health Technology sector contains companies focused on the digitization of healthcare across the value chain from the providers, to the payers, to the patients and consumers. They often optimize existing medical practices, provide health information to individuals, or create new frontiers in medicine.
In this post we examine the different components of Health Technology and how they make up this startup ecosystem. On our Health Technology research platform, we have classified the companies into 22 categories. This blog post will illustrate what these categories are and which categories have the most companies. We will also look at how these categories compare with one another in terms of their funding and maturity.
Digital Medical Devices Is the Largest Health Technology Category
Let’s start off by looking at the Sector Map for the Health Technology sector. As of March 2018, we have classified 2139 Health Technology startups into 22 categories that have raised $64 billion. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.
We see that Digital Medical Devices is the largest category with 288 companies. This category contains companies that build IT-enabled medical and diagnostic devices for doctors. These devices include surgical tools, monitoring equipment, and detection equipment. Some example companies are Signostics, MediBeacon, Stimwave, and AliveCor.
We have seen what the different categories making up this sector are and the number of companies in each. What about their funding and maturity in relation to one another? Let’s look at our Innovation Quadrant to find out.
Healthcare Robotics Is the Heavyweight Category in Health Technology
Our Innovation Quadrant divides the Health Technology categories into four different quadrants.
We see that the Pioneers quadrant has the most Health Technology categories with 15. The Pioneer categories are in the earlier stages of funding and maturity. The Established quadrant has three categories have reached maturity with less financing. These three categories are EHR/EMR, Clinical Backend, and Population Health Management.
The Disruptors quadrant also has three categories: Genomics, Health Payments, and IoT Fitness. These three categories have acquired significant financings at a young age. The Heavyweights quadrant contains the Healthcare Robotics category. This category has reached maturity with significant financing. On a relative basis, the companies in this Heavyweight category have reached more maturity and acquired more funding.
We’ve now seen the Health Technology categories and their relative stages of innovation. How do these categories stack up against one another? Let’s look at the Total Funding and Company Count Graph.
Digital Medical Device Startups Have the Most Funding and Companies
The graph below shows the total amount of venture funding and company count in each category.
As noted earlier, the Digital Medical Devices category leads Health Technology with 288 companies. The above graphic highlights that Digital Medical Devices also leads in funding with almost $13 billion. Some of the best-funded companies in this category are HeartFlow ($477M), Proteus Digital Health ($422M), and ViewRay ($418M).
Conclusion: The Digital Medical Devices Category Leads the Sector
From the above analysis, we can see that Digital Medical Devices dominates Health Technology in funding and company count. On the other hand, Healthcare Robotics stands out as the Heavyweight category in the sector, having reached maturity with significant average funding per company versus companies in other categories. It’ll be interesting to see how the Health Technology landscape will change and develop throughout the rest of 2018.
The following two graphs summarize the rounds of funding going into the Health Technology space. Please note these graphics are made using data through August 2017.
The graph above shows the total amount of VC funding broken out by round. From 2006 to 2016, we saw a general increase in the overall sector funding, with the total amount peaking in 2015 and declining slightly thereafter. Earlier stage rounds (Series A, B, and C) make up a larger share of the total amount.
The graph above shows the total count of funding events broken out by round. From 2006 to 2016 we’ve seen an upward trend that peaked in 2014 and declined slightly thereafter. Earlier stage funding such as Seed, Series A, and Series B events make up the majority of funding event counts.
We are currently tracking 2040 Health Technology companies in 22 categories across 57 countries, with a total of $52.3 Billion in funding. Click here to learn more about the full Health Technology market report.