This article was contributed by our content partner, Nexchange Now.
Despite simmering down after a sizzling first half, digital health funding remains near all-time highs, according to Rock Health.
Startups in the space are reportedly on track to raise an estimated $7.3 billion this year, a billion short of 2018’s $8.3 billion but more than double that of 2017’s.
Megadeals were once again the main driver of the trend, with 2019 seeing nine deals worth over $100 million. New York-based digital pharmacy Capsule had the biggest deal in the third quarter, raising $200 million in a Series C round back in September.
Among the subsectors, behavioral health was among the most popular. Sixteen digital behavioral health companies raised a total of $416 million in Q3, and average deal size has climbed over 70% from the year before.
Behavioral health wasn’t the only popular subsector though:
“FUNDING FOR DIGITAL WOMEN’S HEALTH COMPANIES INCREASED 812% ACROSS 2014-2018, WITH SIXTEEN ROUNDS OF FUNDING CLOSED IN 2018—TWO YEARS AFTER BEHAVIORAL HEALTH COMPANIES RAISED THE SAME NUMBER IN 2016. THROUGH Q3 2019, 10 WOMEN’S HEALTH COMPANIES RAISED A TOTAL OF $177M.”
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