- Since 2010, digital health companies have received $35 billion
in VC funding in over 4,000 deals
- $9.5 billion raised through 698 deals in 2018
- Digital Healthcare Sector is
dominated by companies from the USA
A recent publication from Mercom Capital
reports that the Global venture capital (VC) funding in digital health in 2018
was $9.5 billion raised through 698 deals and saw a 32% increase from the
previous record set in 2017 of $7.2 billion in 778 deals. However, the majority of the funds raised was in the USA that was close to
$7 billion and the remaining $2.5 billion came from other countries. Of these 18
companies raised one-third of the capital.
What this means
is that the global healthcare digital market is dominated by the USA and the
rest of the market remains relatively insignificant. Most of the funds were
raised by Consumer-centric companies (about $5.2 billion in 447 deals).
‘In 2018, Global venture capital (VC) funding in digital health was $9.5 billion raised through 698 deals and saw a 32 percent increase from the previous record set in 2017 of $7.2 billion in 778 deals.’
companies raised close to $4.3 billion in 251 deals. Other companies that were
funded belonged to Health Data Analytics ($2.1 billion), mHealth Apps ($1.3
billion), Telemedicine ($1.1 billion), Mobile Wireless Technology companies
($847 million), Clinical Decision Support systems ($714 million) and Wearable
Sensors Technology companies ($703 million).
Apparently, since 2010, digital
health companies have received $35 billion in VC funding in over 4,000 deals
and almost $12 billion in debt and public market financing (including IPOs),
bringing the cumulative funding total for the sector to $47 billion reports the
remains relatively a small percentage of global
investment. What irks the Indian healthcare market is the lack of regulation
and antiquated healthcare laws. The recent battle in the courts ( In Delhi
& Chennai) about the sale of online medicines is an example of this
struggle. The government dithers for too long before any meaningful policy or
regulations rolls out in this field.
of ambiguity is the online consultation. So many websites offer this service
but there are again no guidelines or law governing this virtual consultation
and the apex body for a doctor called the Medical Council of
has never issued any statement for or against such a practice.
A handful of digital healthcare companies have raised significant capital for
promoting these various models in our unregulated market. Companies that raised
money on 'Practice management software'
have now added many other
services including customer lead generations through lab diagnostics and home
care delivery of health services.
healthcare space will continue to struggle and so will many other developing
countries for VC funding and of those who have raised significant capital are
likely to go down under unless they step out of India and
reinvent their business model.
- About Mercom - (http://www.mercomcapital.com)