At Fenwick’s recent Digital Health Investor Summit, Bill Evans—CEO and managing director of Rock Health—noted to attendees that private investment in digital health showed signs of leveling off in the third quarter of 2019. As of November 8, 2019, the year-to-date total through the third quarter is $5.5 billion, putting the sector on track to raise $7.3 billion this year, slightly below 2018’s high watermark of $8.3 billion. He also noted that megadeals, those valued at $100 million or more, continue to drive the topline and are clustered in the later stage.
Half of the 10 largest deals in the third quarter were valued at $100 million or more. The quarter’s largest deal clocked in at an impressive $550 million, and all but two of the deals were classified as late stage, according to our analysis of PitchBook data.
The largest deals also reflect the key digital health trends that Evans outlined at the summit, including the growth of behavioral health, women’s health and direct-to-consumer prescription services.