Digital Health Funding Hits $600M in Q1 2015


2014 was a milestone for digital health as it was a record year for funding worth over $4 billion. It is hard to anticipate if this growth trend for digital health will continue in 2015. Venture capitalists invested $630 million in the first quarter of 2015. Seed and Series A rounds (a company's first significant round of venture capital investment) accounted for 60% of the deals. Series B rounds (the next round of financing after series A) accounted for 21%. The top six categories of analytics/ big data, healthcare consumer engagement, EHR/ clinical workflow, digital diagnostics, population health management, and digital medical device were responsible for 61% of the quarter funding.

2015 also had a record quarter for mergers and acquisitions with 95 deals total. Some key mergers and acquisitions are the following:

  • Under Armour acquires MyFitnessPal for $475 million. MyFitnessPal has over 80 million users with which Under Armour hopes to develop brand loyalty.
  • Athenahealth acquires RazorInsights and webOMR in 2015 in order to enter the field of hospital EHR.
  • Fitbit acquires FitStar for $17.8 million. FitStar's two coaching apps had 3 million downloads and shares overlapping target demographics with Fitbit.

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