By: Michael Esquivel
Digital health investing started the year on a high note with four $20+ million rounds of funding in January alone for MD Live, TigerText, MC10 and WellDoc. That’s a very promising continuation of the tremendous funding growth we saw last year when digital health investment set a new record. Rock Health reported that the sector netted nearly $2 billion – a 39% increase over the previous year and more than double the aggregate investment made in 2011. Below is an overview of the biggest reported deals of 2013.
EHRs and Big Data
Our analysis of the largest investments of 2013 shows that most of the dollars went into electronic health records (EHR) companies and big data plays. That’s consistent with recent history; these are subsectors that are capital intensive, but also the most likely to reduce costs in the short-term.
The biggest deal of the year was an $85 million Series D round for Practice Fusion, a provider of EHR and practice management software that also supports a consumer-facing platform. Business and tech reports have speculated that Practice Fusion is anticipated to go public in the next year or so.