2020 saw digital healthcare hit a rather unexpected level, especially regarding corporate funding. The COVID-19 pandemic propelled the need for technology-based healthcare offerings, and one way that could work was by investments from corporations.
The total corporate funding for digital healthcare went as high as $21.6 billion through the year. This was 103% more than 2019 that had 10.6 billion in funding. Total corporate funding covered venture capital, debt, and public market financing. For the last ten years, venture capital funding for digital health companies totaled $59 billion, and $21 billion for debt and public marketing financing. Altogether, the digital healthcare industry accumulated about $80 billion in ten years.
In the last three months of 2020, total venture capital rounded up to $4.5 billion through about 139 deals. The first three months of the second half of 2020 rounded up $4 billion in 195 deals. Altogether, there was a 165% increase in the final three months of 2020 compared to the last three months of 2019.
COVID-19 was the major push for the funding of digital health in the last year. The majority of the digital health companies saw their best year yet regarding funding. About six major digital health companies also went public. However, the industry has more prospects of going public this year, 2021, if the trend continues.
Prospects for more digital health funding in 2021
The pandemic caused an uprising in the funding of the digital health industry last year more than ever. This has caused continuous encouragement of the adoption of digital health tools and products. Phox Health is one of the major digital healthcare providers making access to healthcare more convenient. Our platform works with partners all over the country to provide patients with deliveries – within two hours.