Monday, October 20, 2014

Digital Health Funding is Accelerating beyond that of Traditional Healthcare

During USC's 2014 Body Computing Conference, experts agreed that digital health funding is accelerating beyond that of traditional healthcare. According to Rock Health (a company that provides startups with funding and full-service support), digital health is one of the fastest growing niches overall in venture funding today and is attracting investors from several different areas. Unexpectedly, it is surpassing medical devices in aggregate funding.
Casper de Clercq, a partner at Norwest Venture Partners, a leading investor in medical device firms, pointed to a trend in data collection. “There are other industries that are way ahead. Walmart, Target, Amazon, and Google know way more about our healthcare and our health situation than probably most of our providers do.” He mentioned the famous case of a Target store discovering that a customer was pregnant simply by monitoring her buying habits.   
Malay Gandhi, managing director of seed fund Rock Health, stated that large medical device companies are transforming their business models from a pure hardware business into a services business. “Technology enabled services in this category, where the medical device becomes a data acquisition mechanism, and you have software, analytics, and a services or patient management platform is really the future of medical devices.”


References: http://www.mddionline.com/article/venture-investment-digital-health-surpasses-medical-devices-141006

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