Healthcare Apps Raise $220 Million in Q1 2015, Highlighting Surge in Digital Chronic Disease Management

Mercom Capital’s latest report shows that in the first quarter of 2015, apps designed to help manage chronic diseases and other conditions accounted for $220 million across 35 deals. VCBeat has compiled the key highlights from the report to provide insights into the development of internet healthcare app companies over the past few months.



Mercom pointed out that since 2010, app developers have raised a total of $900 million, and the different situations in different categories shown in the figure above reflect the maturity of technology. The report emphasizes that these apps, wearable sensors, and sensor-based implantable devices are serving the healthcare management field in various ways.

Advance Health’s internet-based application for home medical risk assessment and chronic disease care data collection has raised $40 million from Summit Partners and Noro-Moseley Partners.

Clinical Ink, an application for collecting electronic data via internet-enabled devices, has raised $20 million from MPM Capital, F2 Ventures, FCA Venture Partners, and other investors.

Glooko, with its FDA-approved internet-based diabetes management app and MeterSync device, raised $16.5 million from Medtronic, Canaan Partners, The Social + Capital Partnership, and Samsung’s venture investment arm. Part of the funding will be used to incorporate data from insulin pumps and continuous glucose monitoring systems into its platform to integrate personalized and predictive algorithms.

In the fitness and wellness sector, ClassPass is a membership-based app that allows users to access various fitness and wellness classes at different gyms and studios for a fixed fee; it has secured $40 million in investment from General Catalyst and Thrive Capital. Noom raised $16.15 million from Han-Sing Hi-Tech Fund, TransLink Capital, and RRE Ventures with its virtual health and fitness coaching app.

Wearable sensor companies attracted $42 million in investment across nine transactions. This quarter also saw several large-scale digital health deals involving implantable sensors and wearable devices. Orthosensor, which has developed a single-use orthopedic implant device to help surgeons optimize the placement of artificial knees and inform other clinical decisions, raised $19 million from Bridger Healthcare and Tullis Growth Fund. GlySens, a developer of implantable glucose monitors for diabetes patients, raised $12 million.

An internet wireless technology company raised $21 million over 12 trading days. Atheer Labs, which develops augmented reality smart glasses for physicians and other professionals, secured $8.8 million. Palo Alto Health Sciences, which has developed an FDA-approved home respiratory system to help patients diagnosed with panic disorder control their breathing, raised $3.9 million.