Overview

In the first half of 2021, global venture capital funding for digital health companies reached a new high of $15 billion, mainly powered by telehealth investments.

Mercom Capital Group found out that the top-funded Digital Health VC funded categories in 1H 2021 were: Telemedicine with $4.2 billion, Wellness with $1.7 billion, mHealth Apps with $1.6 billion, Analytics with $1.5 billion, and Clinical Decision Support with $1.1 billion. Telemedicine, mHealth apps, and data analytics companies have raised most of the $1.6 billion early-stage venture capital funding in the first half of 2021.

According to Mercom, 1,254 investors participated in funding deals in 1H 2021 compared to 921 investors in 1H 2020.

The digital health sector had a spectacular first half of 2021. Venture investments in digital health during the first half of 2021 have already surpassed funding raised in all of 2020 and is the largest amount raised in a single year since 2010.

Raj Prabhu, CEO of Mercom Capital Group

Six telehealth startups joined the unicorn club in Q2’2, Noom (raised $540 million), Keep ($360 million), and $300 million each raised by Capsule, KRY, and Hinge Health. There are presently 27 telehealth unicorns in the world, with a total value of $55 billion.

This year has also witnessed a record amount of mergers and acquisitions, with 136 digital health deals compared to 83 at the same time last year. Some of the biggest ones so far are Microsoft’s acquisition of Nuance for $19.7 billion, Optum’s acquisition of Change Healthcare for $13 billion, Datavant’s acquisition of Ciox Health for $7 billion, KKR’s acquisition of Therapy Brands for $1.5 billion, and Boston Scientific’s acquisition of Preventice Solutions for $925 million. 

We have gathered a list of the most innovative companies, both new and established, that are setting trends in the digital health industry. 

Name Picks

Noom

Noom is a mission-driven psychology-based digital health platform that aims to assist people worldwide in achieving their physical health goals. The company provides personalized to each user’s body type and health state digital and professional guidance and care. Noom has raised a total of $657.3M in funding over ten rounds, the latest one on May 25, 2021, from a Series F round.

Doximity

Doximity is a medical professional’s internet platform. Over 80% of U.S. physicians are members of the company’s network, spanning all specialties and practice areas. Doximity delivers digital tools built for medicine to its verified clinical membership, allowing them to collaborate with colleagues, stay up to speed on the latest medical news and research, manage their careers, and perform virtual patient visits. Doximity has raised a total of $81.8M in funding by 6 investors over three rounds with Morgan Stanley and Threshold being the most recent ones.

Tonal

Tonal was founded in 2015 by Aly Orady and is based in San Francisco, California. The company manufactures strength training equipment ( digital weight machines) that combines artificial intelligence and expert-led coaching. The product offers workout routines tailored to specific needs, such as building muscle, balancing strength, and improving athletic performance. Backed by 32 investors, Tonal has raised a total of $450M in funding over six rounds.

Highlights

8 brands used « my » in their domain
When you entrust someone with your health, familiarity is important. Eight of the startups in this list used names like myowndoctor.com, myoncalldoc.com, myidealdoctor.com – adding “my” to the name helps when they can’t get the exact brand match .com domain but also makes the name sound more familiar.

Interesting use of country extension
Extensions meant for the health industry don’t seem very popular but still ranked higher than local extensions – .health has 6 and .care 2. Interesting to note is the use of .md – .md is the Internet country code top-level domain for Moldova but here used as it can be seen as an acronym of Medical.

Charts

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