Investors seem to be eyeing the consumer health startup sector more than in the past. A handful of startup investors have released reports and studies focused on this specific funding.
According to New York-based Startup Health, an investor and accelerator, $6.5 billion has been invested in digital health deals across the world since the beginning of 2016. That’s compared to last year’s total of $6.1 billion. San Francisco-based investor Rock Health says in just the U.S. alone, $3.3 billion in funding has been fueling new digital health funding just this year, through the third quarter.
As for where the majority of that funding is going location-wise, both reports point to the San Francisco Bay area. Startup Health reports that the total for that are is $1.2 billion, which is nearly twice as much as New York or Boston. That said, there are other cities vying for investors attention and getting it. The reports sites Philadelphia, Chicago, Minneapolis/St. Paul, Los Angeles, San Diego, Dallas, and Washington, DC, each receiving health startup investment. This year, DC scored $91 million through eight separate deals.
Health and the consumer are a pairing that investment has been eyeing much for over the past 5 years. And that ranges from Eccrine Systems receiving investment for its new sweat-focused data collecting technology, to businesses like the Handstand app that connects physical trainers to users looking to work out through an “Uber of X” model.
According to insight from Silicon Valley Bank, 55 percent of digital investment since 2001 have focused on companies that connect directly with consumers. With the price of healthcare being extremely expensive for many consumers, much of the pairing of this focus aims to bring costs and transparency to the healthcare industry.