Why Digital Health Startups are Booming Right Now

As overkill as it sounds, the COVID-19 pandemic affected us in so many ways we don’t even know where to begin. But I want to place great emphasis on one area more than others — digital health.

In these trying times, let’s not also forget that other critical illnesses like cancer and heart diseases are still in need of healthcare. But all of our resources seem to focus on figuring out how to fight off a novel virus that’s spreading fast like wildfire. We realize our healthcare systems are in dire need of an upgrade. We need to keep up just like how mobile gadget companies are releasing out upgraded models now and then.

Sure enough, fundraising for digital health startups skyrocketed during the pandemic.

Photo by Fabian Møller on Unsplash

As stated in Q1 2021 Funding Report on Digital Health Venture Investment by Rock Health, the total funding of digital health venture accelerated from $7.4B in 2019 to $14B in 2020! And although the trends were quite the same during the early months of 2020 and 2021, the trend deviated and bunched up in March 2021 raising a total of $6.7B. According to Rock Health, it’s their most funded quarter recorded to date. Take note that the research study was only conducted for U.S. digital health startups.

According to IGI Global’s definition, a digital health startup is:

“A newly founded company that aims to provide some sort of technological product or resource to the medical market, typically targeting medical practitioners, patients, insurance providers, or corporate roundtables.”

It just goes to show that a lot of innovators are brewing something for digital healthcare. And that investors are seeing these as opportunities for massive growth in the coming years.

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