According to the quarterly funding report from StartUp Health, the global growth platform for entrepreneurs transforming healthcare (StartUp Health Insights: Digital Health Funding Rankings Q3 2014), capital in the sector is on track to nearly double year-over-year.
In details, the report highlights that funding in the first three quarters of the year has already overcome the total invested in 2013 ($5B in 2014 YTD vs. $2.8B in 2013) while deal volume is lower (347 in 2014 YTD vs. 533 in 2013), as more capital is invested in fewer startups. Funding in the third quarter of 2014 nearly doubled over the same period last year, from $946M to $1.7B. 111 deals closed in Q3 2014, compared with 156 closed in Q3 2013.
The largest deals include Privia Health , Preventice , Proteus Digital Health , NantHealth and Flatiron Health; most active subsectors include big data/analytics, navigating the care system, practice management, sensors/diagnostics and patient engagement; most active metro areas include the San Francisco Bay Area, New York City, Washington, DC, Los Angeles and Minneapolis; most active investors include Founders Fund, Khosla Ventures, Sequoia Capital and Venrock, each with six investments.
Q3 also saw 15 acquisitions by companies including Google, Practice Fusion, Cerner and WebMD/Medspace.
The full report is downloadable for free at http://www.startuphealth.com/Q3.