Rock Health Reports $3.3B in Digital Health Funding Through Q3 2015 Amid Surging Late-Stage Investment

According to data from Rock Health’s latest research report, digital health financing reached $3.3 billion in 2015 through the third quarter, following a record-breaking year in 2014, accounting for 30% of the growth over the consecutive 12-month period. As reported by Rock Health in its related article, although the number of transactions in 2015 decreased by 9% compared with 2014, the average deal size was the largest on record at $15.8 million; moreover, eight digital health companies accounted for more than 50% of the total financing in that quarter.

This report was prepared by Teresa Wang and Rita Rajan, with Malay Gandhi assisting in compiling data sourced from Capital IQ, the SEC website, Crunchbase, NVCA, press releases, and the Rock Health funding database. Notably, Rock Health’s digital health funding report includes only U.S.-based disclosed transactions exceeding $2 million, excluding companies not directly related to the healthcare vertical. Consequently, the data presented in this report and its projected trends for healthcare industry funding may differ from those of other sources such as StartUp Health. Key findings of the report include:

- Financing rounds at Series 4 or later accounted for 16% of the total transaction volume, compared to 11% in Q3 2014;
- The six internet healthcare categories with the most financing in Q3 2015 are detailed in the table below:

- Digital diagnostics and life sciences commercialization tools saw significant growth in Q3 2015, with year-over-year increases of 195% and 110%, respectively;
- From 2015 to the present, there have been a total of 146 mergers and acquisitions (M&A) deals, with electronic health records and clinical workflow solutions accounting for 25% of the transaction value.

Summary Catalog of Domestic and International Investment and Financing Reports

Compiled by Chen Xin
Editor: Mo Renying