Rock Health’s latest report highlights that higher value deals, not increased frequency, are driving the record funding. Rock Healths latest funding report reveals that the first three quarters of 2018 have already surpassed the total amount of funding that was spent on digital health startups in 2017. So far this year, digital health startups have raised $6.8 billion, with $3.3 billon of that coming from the third quarter alone, compared to a total of $5.7 billion in 2017. The quarterly report suggests that while the average deal has increased incrementally since 2011, within the last year the average spiked by $10.2 million, from $16.4 million in 2017 to $23.6 million in 2018. Larger deals rather than number of deals account for this bump, with the average deal size on the year soaring to $23.6M, the authors of the report wrote. Even excluding the six deals in 2018 over $200M, average deal size is still greater than last year ($17.6M compared to $16.4M).So far this year ten companies have raised over $100 million. Those companies include Livongo, Collective Health, Tempus and Outset Medical. Helix, HeartFlow, American Well and Butterfly Network have all raised more than $200 million. But the top two amounts go to 23andMe, with $300 million, and Peloton Interactive, with $550 million.

Source: Click here