Rock Health’s 2012 Digital Health Funding Report Shows Significant Growth, Significant Gender Gap

1-9-2013 3-07-32 PM

2012 was a powder keg year for digital health investing, according to a year-end report released by Rock Health. The report analyzes investing activities in the digital health marketplace and contrasts them with 2011 activities. While mHealth initiatives have generally sputtered with regard to patient adoption, this did not dampen the outlook of investors during 2012. Key points from the report include:

  • There was a 46 percent increase in dollars invested from 2011 to 2012
  • Digital health investments outpaced investments in overall healthcare, software, medical devices, and biotechnology.
  • 134 digital health companies raised more than $2 million in 2012.
  • Health consumer engagement and solutions that help consumers with healthcare purchases led the digital health investing landscape.
  • $150 million was invested in personal health and tracking tools.
  • Castlight’s $100M Series D funding round was the largest investment of the year. The five largest deals made up 20 percent of the funds invested over the whole year.
  • Only eight investors funded three or more separate deals, suggesting a still small group of active VCs in the market.
  • Boston and California represent the epicenters of funded digital health startups, followed by Austin, Seattle, Chicago, Memphis, and Los Angeles.

While the future looks promising for entrepreneurs wading into the digital health market, a persistent and alarming trend is already being established. Ninety-three percent of funded startups have male CEO’s. As a younger, socially-conscious industry, one would not expect a gender gap of this magnitude. The digital health industry was built on the idea that together we can change negative behaviors and overcome destructive social trends.

If you are a woman running a digital health startup, e-mail me and I’ll write a spotlight on your company.


Lt. Dan, Mr. H, Inga, Dr. Jayne.

More news: HIStalk, HIStalk Practice.

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