2020: The Digital Health Boom
It looks like 2020 was a real game‑changer for folks eyeing the digital health scene. If you’re still wondering what made the year pop, here’s the low‑down: during the first nine months, the sector pulled in $10 billion in deals. That’s a stonk‑tastic jump over the $7.4 billion that came in 2019, and even higher than the $8.2 billion of 2018.
Credits to Q3 2020
- 109 deals that lit up the quarter, totaling $4.6 billion—three times the Q3 2019 haul.
- 24 mega‑deals, each bringing in $100 million or more. That’s double the 12 hot tickets that made the cut in 2019.
It’s not just numbers; it’s a tide of innovation rushing through the industry. Investors are throwing cash at a wave that’s reshaping healthcare, and the confidence is plain to see.
Average deal size hits $30.2m, 1.5x higher than 2019
What the Numbers Say: Digital Health Deals in 2020
When 2020 rolled around, the digital health space was feeling pretty good. 82 deals snagged a cool $2.9 billion in Q1, and even though the deal count jumped to 89 in Q2, the total value wobbled down to $2.4 billion. Either way, every quarter tossed in more cash than the average of $2.1 billion.
Deal Count & Value Highlights
- Q1 2020: 82 deals → $2.9 billion
- Q2 2020: 89 deals → $2.4 billion
- Both surpassed the quarterly average of $2.1 billion
Mega Deals & the Biggest Rounds
From the first to the third quarter, the average deal size jumped to $30.2 million—that’s a 1.5× bump from the 2019 average of $19.7 million. Mega deals were the real heavy‑hitters, representing 41% of the total value. The crown jewel? Bright Health, which hauled in a whopping $500 million during its Series E.
On‑Demand Healthcare – The Money Magnet
When it comes to sky‑high funding, on‑demand healthcare takes the cake: 48 deals poured in $2 billion. Here’s the line‑up of the biggest pulls:
- Alto Pharmacy – $250 million
- RO – $200 million
- AmWell – $194 million
And AmWell didn’t just stop there; the company went public in September, selling 41.2 million shares at $18 each, raising a proud $742 million. The average deal size in this niche is a whopping $42.1 million, which is 40% larger than the overall digital health industry.
R&D – The Money Magnet Behind Innovation
Research & Development was a close second, boasting 25 deals worth a grand total of $1.32 billion. Its average deal size lands at $52.7 million, a solid 75% higher than the industry average. Fun fact: in 2019, R&D was only the seventh most heavily funded sector.
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