The Longevity

Digital Healthcare Funding Predicted to Reach $7 Billion in 2017

November 9, 2017 |

A recent report by Accenture predicted that digital healthcare funding would reach $7 billion in 2017, up from $6.4 billion in 2016. The report also showed that digital health funding has consistently exceeded predictions ever since the company began predicting funding for the industry in 2014. The report found particularly strong growth for international companies and existing businesses.

The technology consultancy has raised its 2017 forecast for digital health investment to $7 billion, according to a document shared with BI Intelligence via email. That’s up from a previous forecast of $6.5 billion. The forecast suggests that digital health funding is bouncing back after a slower 2016. Digital health funding peaked at $7 billion — far above its forecast value in 2015. Funding then dropped down to $6.4 billion in 2016.

•The updated estimate is largely driven by international growth, mainly from China, India, and Israel. In these markets, overall funding has grown five times since 2013, Accenture notes. For instance, Israel’s digital health funding grew 30% year-over-year in 2016 alone.

•Companies are expanding in areas that have shown success, rather than in new services. This signals that the investors are looking to begin monetizing on startups’ products. Since 2014, funding in Series B, C, and D rounds has grown 12%, while seed and Series A funding fell 13% during the same period.

Established healthcare businesses are investing in digital health initiatives to diversify their revenues and stay at the cutting edge of innovation. Solutions that address affordability, access, and care quality are piquing the most interest from investors. Seventy-six percent of funding in 2016 went to startups that focused on these areas. For example, tools that aimed to enhance provider efficiency accounted for $1.2 billion of overall funding.


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