Despite forecasts that investments in health tech would dry up by mid-year, venture funding for digital health companies continues to surge, a new report finds.
The report, from health-tech-focused venture firm Rock Health, projects that 2020 will shatter annual records for investments, number of deals, and the average size of such deals. That projection counters previous predictions that the uptick in investments seen earlier this year would subside as the pandemic continued to take a toll.
But despite the unstable economy, health venture investments are on the upswing, mainly due to an infusion of cash into telehealth innovation. The sector’s funding trend line is now expected to hit a high of $10.2 billion — split over 432 deals at an average of $23.6 million each — by the year’s end. By comparison, annual funding only reached $7.4 billion in 2019, down from 2018’s then-record of $8.28 billion.
