How Digital Health Apps are driving investment trends in the year 2021?

Howdy!

We are back with our weekly newsletter on Digital Health apps. This week we are following and covering some of the interesting trends around record investments that are already creating a buzz in the year2021.

Covid 19 has created a paradigm shift to investments in digital health. 3 months into 2021, the tide is not slowing down with record investments. Around the middle of March, there were four mega-deals that equated to a total of $805 M in funding, as reported by Rock Health. Today we are covering some of these deals and some key takeaways from the trends in our weekly.

Clarify Health: Clarify Health Solutions raised $115,000,000 / Series C from Concord Health Partners and 6 other investors.

A Brief on Clarify Health: Clarify Health Solutions develops analytics and software solutions that enable health systems to deliver satisfying and higher-value care. Through their Health Analytics platform Clarify delivers precise insights into provider performance, patient journeys, and therapy adoption.

UniteUs: Unite US has raised a series C for $150 million financings backed by Iconiq Growth. With companies like Optum, Emerson Collective, Transformation Capital, Define Ventures backing them along with their existing investors Salesforce and Townhall, Unite Us has a strong coordinated care network that empowers a trusted community to take ownership of their health. 

A brief on them: With UniteUs one can build and scale their coordinated care network, track outcomes together, identify service gaps and at-risk populations.  This is achieved using a 5 step process of Entry, Screening, Referral, Resolution, and Feedback that is continuously tracked through their shared technology platform.

Strive Health: A national leader in value-based kidney care raises $140 Million Led by Alphabet’s CapitalG

A brief on them:

Strive Health is a built-for-purpose, value-based kidney care solution for innovative healthcare payors and providers. Through a unique combination of high-touch care teams, advanced technology, seamless integration with local providers, and next-generation dialysis services, Strive develops integrated kidney care systems that support the entire patient journey from chronic kidney disease (CKD) to end-stage renal disease (ESRD).

Insitro :

Insitro an AI-powered drug discovery company raises a massive series C round for $400M for machine learning-powered drug discovery efforts to carry forward its development efforts and Big Pharma partnerships with the likes of Gilead and Bristol Myers Squibb.

More about them:

Insitro is a data-driven drug discovery and development company that leverages machine learning and high-throughput biology to transform the way medicines are created to help patients. Insitro leverages the new approach to drug development – one that leverages machine learning to every phase of process target identification, lead discovery, and unique in vitro strategies for modeling disease state and designing new therapeutic interventions.

Investment trends show what is in store for the digital health future:

As reported by Crunchbase, investors already backed $4.1 billion to work across 24 supergiant-related rounds this year. With approx. 10 early-stage deals, biotech deals are dominating the list.

Read more here

Another News highlighted for 2021, the areas that will continue to grab investor attention are Data Interoperability, Mental health and Personalized Care

“Investors in the space poured record investment dollars into digital health startups in 2020: $14.2 billion globally and $9.2 billion domestically, according to Crunchbase data. Investments in 2021 could rival 2020 as investors expect innovation to come from areas such as data interoperability, mental health and personalized care.”

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Some more news that are trending -

The global digital health market size is expected to reach USD 295.4 billion by 2028 and is projected to expand at a CAGR of 15.1% over the forecast period.

Rising smartphone penetration & integration of advanced technologies, such as the internet of things (IoT) & artificial intelligence (AI), and increasing implementation of mHealth technologies for self-management of chronic diseases, such as diabetes, are some of the major factors driving the market. In addition, increasing demand for enhancing workflow efficiency in clinics, hospitals, and other healthcare centers is further boosting the demand for mHealth services thereby, aiding the market growth.

-          Reported by Research and Markets.com

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Key Takeaways –

As we conclude, some of the key takeaways from the trends in Digital Health investments:

-          Biotech Deals are dominating with lot of M&A activities targeting investments around Drug Discoveries and workflow efficiencies

-          Adoption of IoT, AI and adoption of mHealth amongst consumers is driving lot of investments around virtual care, predictive and personalized experiences

-          On the payer side, deals are focused around creating connected network and improving personalized experiences of consumers using coordinated care strategies

-          As the health systems continue to pivot with Virtual Care, adoption of Value based care will continue to rise amongst health systems integrating with payers

Let us know what you think and if you have a similar story to share, please write to us at healthviva@taliun.com

Adios!

HealthViva Team