With Q1 2016 behind us, health tech industry has continued to attract investments as it did in 2015. A total value of $1.4 billion was raised in private equity and venture capital in the first half of 2016 alone, according to Tom Sullivan of Healthcare IT News. This represents a 27% increase over the last quarter of 2015. Wearables again dominated the industry against common speculations, raising a total of $260 million. Big Data Analytics for Health IT raised $197 million and telemedicine raised $120 million. For both analytics and telemedicine, these series of investment helped them cross $1 billion funding raised to date.
Health & Fitness Wearables are increasingly becoming popular, more as a health regulation accessory than as a fashion fad. The wearable market is expected to see 10x increase and amount to $50 billion by 2020. Almost 77% of users say that they use wearables to exercise in a smarter way and another 75% admit using them to collect and track medical information. With the seamless integration of smartphones with wearables, it is easy to store data in the Cloud and share it with your physician. The global smart wearables revenue is increasing at a CAGR of 50%, with 94 million units expected to be sold by 2020. Notable among the funding were Jawbone that raised $165 million from the Kuwait Investment Authority and Cala Health, a startup earlier known as Resido Medical that created a wearable gadget to treat hand tremors. The latter raised $18 million. The major Health IT M&As include Nokia that announced plans to buy a French wearable firm Withings for $191 million.
The future of healthcare is expected to be an equal dose of biomedical science and data analytics. With Business Intelligence (BI) and statistical computing entering the healthcare domain, companies will be able to create a full 360-degree patient profile, with all health records and reports being available online. This will help eliminate an annual loss of $1.5 million due to duplicate records being created. Among health analytics companies, SnapMD has raised $5.3 million for its virtual care system whereas Bivarus, a new entrant offering patient experience analytics program, raised $2 million.
Telehealth and mHealth technologies have also raised investments worth of $120 million and $100 million respectively. Today, mHealth technologies are limited to the smartphone mainly and include mobile apps, patient remote monitoring devices, patient decision aid tools, video and audio players for enabling virtual communication, etc. Telehealth technologies are expected to increase their revenues by 48% CAGR, which is the highest among all the healthcare sectors.
The most famous companies that have raised capital in the first quarter of 2016 include:
- MindMaze, a Swiss company that uses VR to treat stroke victims, has raised $100 million;
- mPulse Mobile has raised $8.3 million;
- Pear Therapeutics has raised a total of $20 million, and
- Higi, a health kiosk company, has attracted investments worth of $40 million.
And what other Health IT startups would you to our list? Please share your thoughts in Comments below or send us a tweet to @Intersog!
Sources used: Healthcare IT News, 2016; Mobile Health News, 2016; PR NewsWire, 2016