Venture Investment in Digital Health Effectively Doubles in H1 2012

[author: Michael Esquivel]

Venture investment in healthcare convergence technologies soared in the first half of 2012. According to a recent report from Burrill & Co, digital health, into which they group healthcare IT, mobile health and wireless health, saw a 194* percent jump in financing in H1 2012 over the same period in 2011. [Burrill Report, Vol 2, Issue 8, August 2012]. According to Burrill, more than $500* million dollars in venture funding was invested in the space in the first half of the year, representing 46 transactions.

In addition to their reputation for saving costs and improving outcomes, healthcare convergence technologies - from electronic health records and practice management tools to mobile apps and analytical software for genomics - face a less onerous regulatory road than new molecular entities.

While many important questions remain, especially with regard to patent protection and potential FDA regulation, the overall trend is clear:  We are witnessing an unprecedented surge in investment and support of new companies and products addressing our healthcare challenges with information and mobile/wireless technologies.

*Correction: Originally this post stated the increase in digital health funding in H1 2012 was "threefold" (in the headline) and 317 percent in the text over the same period in 2011. The aggregate funding during that period was stated as $499 million. Those references have been updated in accordance with a correction issued by Burrill & Co from their initial release. [updated 7/30/12]