Accenture: Funding for digital health startups to hit $6.5 billion in 2017

By Aditi Pai

Accenture Digital Health fundingFunding for digital health startups will reach $6.5 billion by the end of 2017, up from $3.5 billion in 2014, according to a recent report from consulting firm Accenture. Digital health funding last year topped $2.8 billion.

“A digital disruption is playing out in healthcare that will change social interactions, alter consumer expectations and, ultimately, improve health outcomes,” Accenture Managing Director of patient access initiatives Dipak Patel said in a statement. “This momentum will be sustained if digital healthcare startups apply capabilities that create a seamless patient experience and result in both medical cost savings and improved outcomes.”

All projections were based on funding data from 2,000 digital health startups that raised money between 2008 and 2013. The total funding raised during this time was $10.2 billion. 

The greatest amount of funding, $2.9 billion, went into startups that were working on infrastructure issues, like interoperability and health analytics. Digital health startups that work on engagement offerings, which Accenture says includes wearable devices and incentive programs, received $2.6 billion. Telehealth services also raised $2.6 billion and remote patient monitoring raised $2.1 billion.

Other funding reports have also shown a rapid increase in digital health funding. In the first half of 2014, digital health funding reached $2.3 billion, according to a report from accelerator Rock Health. This report included data from 143 digital health companies that had raised more than $2 million during the previous six months.

Rock Health also said that the largest share of funding during the first half of the year, $211 million, went to companies developing management and administration tools for payers. After that, companies that make digital medical devices designed to treat certain conditions raised a total of $206 million, companies focused on data analysis and aggregation products raised $196 million, companies that offer tools that help consumers purchase healthcare services raised $193 million, and population health management platforms raised $162 million.