2019 Digital Health Funding Drops From Record-Breaking 2018, Report Finds

In 2019, U.S. digital health startups raised a total of $7.4 billion—the second largest funding year ever—but for the first time since 2011, the number of investments in this space fell year-over-year (YoY), according to a new report from Rock Health.

Rock Health, a venture fund dedicated to digital health, has been tracking such deals since 2011. Last year, 359 U.S. digital health startups raised the $7.4 billion from 627 investors. After jumping 32 percent across 2017 to 2018, the average deal size dipped to $19.8 million in 2019. Overall, digital health entrepreneurs continue to have access to near-historic levels of funding, the firm’s analysts noted.

As Rock Health analysts anticipated at the close of 2018, which was a record-breaking year, the growth trajectory of venture investment in digital health slowed in 2019. Total venture funding was 10 percent below 2018’s record-setting high of $8.2 billion.