Close this search box.

Investments in digital health start-ups reach 3,9 bln dollars in first half 2016

Investments in digital health companies and start-ups reached a new high in the first half of 2016. According to, 3,9 billion dollars were invested in the digital health market worldwide. Seed and Series A financing rounds are substantially equal in number, demonstrating a still thriving early-stage innovation landscape.

Most funding dollars are being funnelled to Series A rounds, creating opportunities for companies with validated solutions. Startuphealth sees a clear pattern in the deployment of capital forming with slower periods at the beginning of the year and during the summer months, with May and September as hot months for funding.

The company earlier predicted a steady rhythm and stride moving into 2016 and as we continue past the halfway mark of the year, the rhythm continues to hold strong. More than 7,600 startups around the world are developing solutions in digital health.

2016 demonstrated the strongest first half of a year, to date, with $3.9B total invested compared to the previous record of $3.5B in the first half of 2014 (with 7 billion for the full year). In the first half of 2015 there was a decrease to 2.9 billion dollars.

Higher investments, less deals

In alignment with past trends, funding continues to increase as deal count decreases. The number of deals reached a peak in 2013 (624 deals), to decrease to 566 in 2014 and 498 in 2015. In the first half of 2016 the number of investment deals reached 234.

Though funding looks like it took a significant dip in June of this year, this was largely due to the $500M Series A investment in Ping An Good Doctor in May. China-based insurance company spinout Ping An Good Doctor was the largest non-U.S. deal this year. It’s an atypical healthcare startup since it came out of a large, established business large. It launched a mobile health app last year to help patients to schedule healthcare appointments and interact with physicians through text messaging, images and video.

Some other notable digital health companies raising money were:

Codoon: produces fitness wearables and connected devices in the consumer wellness space. Based in Chengdou in China, the company raised $50 million in a Series C round.

eGym: Led by Philipp Roesch-Schlanderer, Munich-based eGym develops personalized workout regimens by connecting gym goers with trainers. It raised a $45 million Series C round led by HPE Growth Capital.

EarlySense: a Tel Aviv-based company that raised $25 million in a Series G round to bolster the customer base for its continuous monitoring tech to support remote patient monitoring.

Babylon: a UK-based telemedicine company that raised $25 million in a Series A round led by Investment AB Kinnevik. Its iOS and Android app allow members to connect with physicians and therapists through video consultations, photos and text messages to get answers to questions and store health information.

Blue Bee:  a life science technology startup in the Netherlands, raised $11.6 million (€10 million) to address bottlenecks in DNA analysis, simplify collaboration between scientists and to facilitate global roll-out of genetic testing, according to its CEO Hans Cobben.

Rethinking health insurance

Companies rethinking the way we experience insurance are high in funding as Oscar (400 million in investments), Clover (160 million) and Bright Health (80 million) scale their solutions. In the top 10 most active markets with digital health investments we find patient/consumer experience with 958 million dollars invested and 51 deals, wellness (854 million in investments and 25 deals) and Personalized health / quantified self (524 million dollars, 19 deals).

Some 450 companies invested in digital health in the First half of 2016, which shows that interest of investors in this sector is not waning. 21 investors made more than three deals. In full year 2015 there were 611 investors, as compared to 602 in 2014. And 506 in 2013. 


ICT&health World Conference 2024

Experience the future of healthcare at the ICT&health World Conference from May 14th to 16th, 2024!
Secure your ticket now and immerse yourself in groundbreaking technologies and innovative solutions.
Engage with fellow experts and explore the power of global collaborations.

Share this article!

Read also
Innovation Adoption: How to Traverse The Valleys of Death
Pioneering Cardiac Arrest Detection for Enhanced Survival.
CardioWatch Revolutionizes Cardiac Arrest Detection
Dr. Oscar Díaz-Cambronero, Head of Perioperative Medicine Department at La Fe Hospital, spearheads innovative telemonitoring initiatives revolutionizing patient care
Smartwatches Saving Lives Inside and Outside the Hospital
EIT 2024
EIT Awards 2024. Two European startups are revolutionizing the treatment of cardiovascular diseases
Bertrand Piccard, Swiss explorer and founder of the Solar Impulse Foundation
EIT Summit 2024. What are the trigger points that drive or inhibit innovation?
MMC pioneers wireless monitoring for premature infants with the innovative Bambi Belt, revolutionizing care with improved comfort and mobility.
Wireless Monitoring of Vital Signs in Premature Infants at Máxima MC
Data protection-critical incidents resulting from human error are often rooted in stress, routine, negative attitudes toward IT, and deficits in employees' identification with the healthcare facility.
How cyberpsychology helps prevent human errors leading to data leaks
What technologies will enter our homes in a few months? ICT&health checked it out at the CES 2024.
CES 2024: Meet the exciting innovations for health and well-being
An article on a new study on e-health assessment tools
eHealth success lies at the intersection of technology, people, and organization
Unlocking the Future: Professor Sylvia Thun, a trailblazer in healthcare interoperability, discusses the crucial role of seamless data exchange in revolutionizing medicine and empowering individuals with comprehensive access to their health data.
Seamless data exchange will unlock the long-awaited benefits of digitalization
Follow us