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Rise in funding reflects 'rapid growth in activity' in the digital health market, says expert


Investments in digital health companies rose in 2015 to total $5.74 billion, according to newly published research.

Investment data analysts CB Insights said that it had seen a 20.6% increase in the volume of investment deals involving digital health companies last year. There were 889 deals in 2015 compared to 737 in 2014. The investments made in 2014 were worth $5.17bn in total.

In 2010 there were just 160 investment deals struck involving digital health businesses totalling $952 million in value, the analysts said.

"These new figures confirm what we are seeing in the market, namely consistently rapid growth in activity, coupled with a wider menu of investment options created by a marked increase in the number of larger scale digital health players," expert in digital health Matthew Godfrey-Faussett of Pinsent Masons, the law firm behind Out-Law.com, said. "Whilst the gold rush in this sector is very much on-going, a natural balance is being established which should help increase the quality of the products and services that eventually reach the market."

CB Insights said that investors in digital health companies during 2015 came from a number of different sources.

"The most active digital health investors in 2015 saw a variety of different entities participate: including accelerators like Y Combinator and Techstars, corporate tech ventures like Qualcomm Ventures and Google Ventures, corporates from other sectors like Merck and GE, and venture capital firms like Norwest Venture Partners and Lux Capital," CB Insights said.

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