Digital well being funding hit $7.2B in Q1

Digital well being corporations globally raised a collective $7.2 billion on this yr’s first quarter, a sizeable bounce from each the earlier quarter and 2020’s first quarter, in keeping with a brand new report from market analysis agency Mercom Capital Group.

Listed here are 4 funding developments to remove from the quarter:

1. Q1 2021 represented a large bounce from earlier quarters. By way of funding {dollars}, 2021’s first quarter marked a 60% rise quarter-over-quarter from $4.5 billion raised in 139 funding offers in 2020’s fourth quarter. It additionally marks a 100% rise year-over-year from $3.6 billion raised in 142 offers in 2020’s first quarter.

2021’s first quarter represents the biggest funding quarter to this point for digital well being since 2010, in keeping with the report.

2. Extra buyers are pouring more cash into digital well being. Almost 550 buyers participated in 179 funding offers in 2021’s first quarter, in keeping with the report. Within the year-ago quarter, 433 buyers participated in 142 funding offers.

That mentioned, it is unclear whether or not that fast progress will proceed.

“Nearly half of all funding raised in 2020 was matched inside simply the primary quarter of 2021,” mentioned Raj Prabhu, CEO of Mercom Capital Group, mentioned in a press release. Digital well being corporations raised a collective $14.8 billion in full-year 2020. “Whereas it actually appears like digital well being is positioned for a record-breaking yr, the subsequent two quarters will inform whether or not the COVID-19 fueled funding surge is peaking or has peaked.”

3. Curiosity in telehealth continued to surge. Telehealth was the top-fund digital well being class in 2021’s first quarter at $2 billion, representing a 100% improve in funding quarter-over-quarter. Telehealth was adopted by cell well being apps ($912 million), analytics ($906 million), scientific determination help ($661 million), and wellness ($559 million).

4. Mergers and acquisitions additionally elevated. In whole, there have been 63 mergers or acquisitions of digital well being corporations in 2021’s first quarter, up from 41 such transactions in 2020’s first quarter and 52 such transactions in 2020’s fourth quarter. Fourteen of the transactions disclosed monetary particulars, the most important of which was Optum’s plan to accumulate Change Healthcare in a deal valued at $13 billion.

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