AUSTIN, Texas--(BUSINESS WIRE)--Mercom Capital Group, llc, a global communications and research firm, released its report on funding and merger and acquisition (M&A) activity for the Digital Health (Healthcare Information Technology) sector for the first quarter of 2021. Mercom's comprehensive report covers deals of all sizes from across the globe.
Download executive summary: https://mercomcapital.com/product/q1-2021-digital-health-healthcare-it-funding-ma-report
Global venture capital (VC) funding, including private equity and corporate VC into Digital Health companies in Q1 2021, came to a record $7.2 billion (B) in 179 deals, up 60% compared to $4.5B in 139 deals in Q4 2020. VC funding in Q1 2021 increased 100% compared with $3.6B from 142 deals in Q1 2020.
This was the single largest funding quarter to date for Digital Health.
Total corporate funding for Digital Health companies – including VC, debt, and public market financing – reached $8.3B in Q1 2021.
CHART: Digital Health VC Funding Q1 2020 – Q1 2021
Since 2010, Digital Health companies have received nearly $66B in VC funding in over 5,500 deals and almost $22B in debt and public market financing, bringing cumulative investments to $88B.
In Q1 2021, 27 large funding deals of $100 million (M) or more accounted for 67% ($4.8B) of the total funding.
The top-funded categories in Q1 2021 were: telemedicine with $2B, followed by mHealth apps with $912M, analytics with $906M, clinical decision support with $661M, and wellness with $559M.
CHART: Top VC Funded Digital Health Categories in Q1 2021
CHART: Q1 2021 Top Funded Digital Health Categories (By Growth)
The top VC deal in Q1 2021 was the $500M raised by Ro (Roman).
CHART: Top 5 VC Funding Rounds in Q1 2021
"Q1 2021 was the largest funding quarter ever for Digital Health. Almost half of all funding raised in 2020 was matched within just the first quarter of 2021, and Q1 VC funding was more than venture funding raised in any one year between 2010 and 2017. Telehealth was the biggest beneficiary with a 100% increase in funding quarter-over-quarter. Increased M&A activity was another positive takeaway from the quarter. While it certainly looks like Digital Health is positioned for a record-breaking year, the next two quarters will tell whether the COVID-19 fueled funding surge is peaking or has peaked," said Raj Prabhu, CEO of Mercom Capital Group.
The telehealth category, including telemedicine and remote monitoring, received a total of $2.4 billion in 53 deals.
CHART: Telehealth VC Funding Q1 2020 – Q1 2021 (By Quarter)
A total of 547 investors participated in funding deals in Q1 2021.
Digital Health VC funding deals were distributed across 21 countries in Q1 2021.
Six companies went public in Q1 via IPOs and SPACs, raising a total of $1.1 B: Signify Health ($610M), Hims & Hers ($279.5M), Dialogue Health Technologies ($79M), Movano ($43M), Mednow ($29M), and MCI Onehealth ($21M).
In Q1 2021, there were 63 M&A transactions involving Digital Health companies. Telemedicine companies led M&A activity with ten transactions.
CHART: Top Five Digital Health M&A Transactions in Q1 2021 By Disclosed Amount
849 companies and investors are covered in this 106-page report.
To learn more about the report, visit: https://mercomcapital.com/product/q1-2021-digital-health-healthcare-it-funding-ma-report
About Mercom Capital Group
Mercom Capital Group, LLC is a global communications and research firm focused on digital health, cleantech, and financial communications. Visit http://www.mercomcapital.com to signup up for our market intelligence reports.
