Rock Health’s mid-year report on Digital Health funding for 2014 has been released, and the figures are astounding – funding for 2014 (up to June) is $2.3 billion, far exceeding the $1.9 billion total of last year’s haul. This represents a 168% year-on-year growth of funding deals that exceed $2 million each. The top 6 recipient categories digital medical devices, analytics and big data, healthcare consumer engagement, population health management, personalized medicine, and payer administration, which took the highest spot after surging 354%, from a mere $47 million last year. The report attributed the change to motivation from providers to clamp down on costs. On a regional scale, California continues to be the major hub for health tech companies, followed by New York and Boston.
Digital health has been tracked by Rock Health since 2011. Allaying concerns about a possible bubble within the industry, the report also compared the current state to the “frothy” 1999-2000 crash period.