Digital health funding continues its strong trajectory in 2018 as providers eye strategic investments
Investment money continues to flow during the first quarter after a historic year of digital health funding.
In the US, digital health funding reached a record $1.62 billion in Q1, according to Rock Health. Venture funding surpassed last year’s $1.41 billion in the first three months. If this year’s pace continues, digital health investment will surpass last year’s numbers, which reached $5.8 billion by the end of 2017.
StartUp Health, a company that analyzes digital health deals, identified a record number of 191 deals during the first quarter of this year globally. The deals totalled $2.8 billion, equaling the pace of the year prior.
Rock Health also noted that investors “have become more confident investing in large, late-stage rounds.” Three mega-deals closed in the beginning of 2018 after eight deals representing more that $100 million were made in 2017.
Among the most notable deals was Roche’s $1.9 billion acquisition of Flatiron Health and Allscripts and Practice Fusion’s $100 million dollar deal. This comes after a larger $250 million offer for the HER vendor, which was revoked after a Department of Justice inquiry and eClinicalWorks $155 million settlement last year, previously reported by FierceHealthcare.
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