Despite simmering down after a sizzling first half, digital health funding remains near all-time highs, according to Rock Health.
Startups in the space are reportedly on track to raise an estimated $7.3 billion this year, a billion short of 2018’s $8.3 billion but more than double that of 2017’s.
Megadeals were once again the main driver of the trend, with 2019 seeing nine deals worth over $100 million. New York-based digital pharmacy Capsule had the biggest deal in the third quarter, raising $200 million in a Series C round back in September.
Among the subsectors, behavioral health was among the most popular. Sixteen digital behavioral health companies raised a total of $416 million in Q3, and average deal size has climbed over 70% from the year before.
Behavioral health wasn’t the only popular subsector though:
Funding for digital women’s health companies increased 812% across 2014-2018, with sixteen rounds of funding closed in 2018—two years after behavioral health companies raised the same number in 2016. Through Q3 2019, 10 women’s health companies raised a total of $177M.