We are pleased to share an encouraging snapshot of the current investment climate for medical devices and digital health for our community and new and existing investors.
In their 2019 Midyear Digital Health Market Update, Rock Health highlighted that “exits are heating up” and an overall positive investment climate for digital health companies (like VoCare). Of note, Rock Health is the first venture fund dedicated only to digital health companies.
The update noted that over $42 Billion was raised for 180 deals so far in 2019 and that this pace in the space was on track to exceed the record levels of 2018. Another interesting finding was the increased activity in “gobbling up sector startups” by non-healthcare giants like Amazon, Google, Apple, Best Buy and Walmart (see more below).
The article also notes that investors primarily seek two business model features in digital health – both of which the Vitals360 delivers in spades: 1) a B2B focus selling to payors, providers and employers, and 2) creating and sustaining value by overcoming the complexities inherent in healthcare.
Here are some other highlights from the Rock Health Market Update:
- There were 43 acquisitions of digital health firms in the first half of 2019 – mostly by other digital health firms
- IPO activity is “picking up” and digital health companies are raising historically large rounds
- The US is the “largest medical device market in the world” at around $156B, about 40% of the global market
- The sector is experiencing a “surge of cash from new investors and even more repeat investment”
- The core strategy of non-healthcare firms entering the industry, as seen in Apple’s buy of Tueo Health, includes acquiring startups with talent and IP
- Another example is Google “buying external innovation” via acquisition to fulfil their smart home strategy
If you are interested in learning more, you can also check out: Top Mergers and Acquisitions in the Medical Device Industry in 2018 here.The Vitals 360 is a Medical Grade remote patient monitoring/point of care device that collects and transmits critical health data anywhere at any time. As such, the Vitals360 device will represent a tremendous value to health care providers that can immediately improve patient care by utilizing patient data to provide better outcomes at lower costs, while immediately utilizing the new revenue stream approved by CMS. The Vitals360 also provide tremendous value to patients in the form of an easy to use, fully mobile, all in one, diagnostic device that fits in your pocket.