Digital Health Funding Is Up, But Growth Slows, Says Rock Health

Ki Mae Heussner | GigaOM | June 21, 2013

Summary: Investors continue to fund digital health startups at a healthy clip, but growth is slowing, reports San Francisco-based startup accelerator Rock Health.

Funding for digital health startups is on the rise, but growth is slowing overall, startup accelerator Rock Health said in a mid-year report on the industry.

On Monday, the San Francisco-based program for health technology startups, which tracks digital health investments that are more than $2 million, said startups in the field attracted $849 million in the first half of the year. That marks a 12 percent increase over the same period last year but suggests growth is slowing down: last year, funding climbed 73 percent in the first six months of the year, the accelerator said.

Rock Health’s report only includes data for three years and digital health is a relatively young industry, so it’s too early to say if this decline is truly an indicator of a broad investment trend. [...]