Thanks to data in a new report, we now have confirmation that the market for medical apps is white hot and growing faster than ever. Last year across the globe, the health IT sector rebounded from a slight decline in venture capital funding in 2015. This information comes via Mercom Capital Group a public relations, investment, and marketing firm that has a particular focus on health care.
The biggest beneficiaries of this VC largess include the Shanghai-based Ping An Good Doctor, a subscription platform that gives access to one-on-one consultations, booking appointments and filling prescriptions, received $500 million. Cloud-based cancer support software company Flatiron Health saw $175 million. And fitness tracker pioneer Jawbone added $165 million in funding.
2016 funding rose to around $5 billion internationally with mobile health technology accounting for $1.3 billion of that. In total, 622 VC deals were reached over that period.
Where is all of this money going?
In a statement last year, the CEO and Co-founder of Mercom stated that: “International funding deals continue to be strong, especially in China, boosting overall totals.” We highlighted China recently on iMedicalApps as they have been struggling to gain traction even with large digital health investments. And while worldwide funding grew, the United States health IT accounted for a large part of that $5 billion, cashing in at $3.4 billion.
According to Fortune, the biggest investors were Khosla Ventures, GE Ventures and BlueCross BlueShield Venture Partners, to name a few.
This proves that medicine is now leaning in a more mobile-first direction. And that’s a good thing for providers and patients.