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1 Copyright 2010-2016 | Mercom Capital Group | www.mercomcapital.com | [email protected]
Executive Summary
Digital Health Funding and M&A 2019 Fourth Quarter and Annual Report
Funding and merger & acquisition activity for the
Digital Health / Healthcare IT sector
http://www.mercomcapital.com
2019 Fourth Quarter and Annual Digital Health Funding and M&A Executive Summary
2 Copyright 2010-2020 | Mercom Capital Group | www.mercomcapital.com | [email protected]
About Mercom’s Digital Health Funding and M&A Report
Mercom was one of the first research firms to track funding and M&A activity in the Digital
Health/Healthcare IT sector, starting in 2010.
Here is how our report is different: Our report includes deals of all sizes, globally, to present a
complete picture of Healthcare IT funding and technology trends. As an independent research
firm, we have no conflicts of interest with companies covered in this report.
• This is the most comprehensive report covering funding and M&A deals of all sizes,
globally. The trends revealed in this report give a more complete picture of the industry.
• This report does not cover bioinformatics and medical devices.
• All charts, graphs, and trends are clearly categorized and defined by technology and sub-
technology groups.
• This report includes concise deal information for every transaction.
• This report covers historical trends.
• As the industry evolves, our report evolves with it and we continuously improve the
information, analysis, charts, and trends covered every quarter.
Our subscribers include companies and executives from venture capital, private equity,
investment banking, healthcare, healthcare IT (aka digital health and eHealth), insurance,
healthcare associations, universities, tech firms, and more.
Audience Why they like our reports
Venture Capital/Private Equity leads from early-stage deals, technology trends
Investment bankers leads for funding and M&A deals, investor leads
Healthcare IT, Digital health sector trends, investor targets (by funding behavior, including
technology, technology partnership targets, and more)
Insurance companies acquisition leads, investment leads, technology partnerships
Large healthcare & Tech firms acquisition leads, R&D partnerships, investment leads
The report covers the technologies listed below and the sub-technologies under them.
2019 Fourth Quarter and Annual Digital Health Funding and M&A Executive Summary
3 Copyright 2010-2020 | Mercom Capital Group | www.mercomcapital.com | [email protected]
Technologies Covered in This Report
2019 Fourth Quarter and Annual Digital Health IT Funding and M&A Executive Summary
4 Copyright 2010-2020 | Mercom Capital Group | www.mercomcapital.com | [email protected]
• In 2019 global VC funding for the Digital Health sector came to $8.9 billion in 615 deals, a 6%
decrease, compared to $9.5 billion in 698 deals in 2018.
• Total corporate funding into Digital Health – including VC funding, debt, and public market
funding - dropped 18% to $10.6 billion in 2019 compared to $13 billion in 2018.
• Global VC funding for Digital Health companies came to $1.7 billion in 142 deals in Q4 2019,
an 18% increase compared to $1.4 billion raised in 142 deals in Q4 2018.
• Healthcare practice-focused companies raised $3.6 billion in 261 deals in 2019 and
accounted for about 40% of the total $8.9 billion funding raised.
• Consumer-focused companies raised $5.3 billion in 354 deals and accounted for 60% of the
total $8.9 billion in funding raised in 2019.
• Top VC funded deals in Q4 2019: $70 million raised by Weave, $56 million raised by Healx,
$55 million each raised by Seer and Whoop, $50 million each raised by OM1, and Viz.ai.
• The average funding deal size in 2019 was $14.4 million, compared to $13.6 million in 2018.
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: Mercom Capital Group
Digital Health VC Funding 2010-2019 (By Category)
Healthcare IT Security
Revenue Cycle Management
Social Health
Service Providers
Personal Health
Scheduling, Rating & Shopping
Telehealth
Mobile Health
Health Information Management
$11M
$1,173M
$480M
$2,192M
$4743M$4,637M
$5,055M
$9,460M
$7,169M
$8,850M
SELECT KEY
FINDINGS
2019 Fourth Quarter and Annual Digital Health Funding and M&A Executive Summary
5 Copyright 2010-2020 | Mercom Capital Group | www.mercomcapital.com | [email protected]
• There were 30 countries that logged Digital Health VC funding activity in 2019. Most of the
funding was recorded in the United States, where nearly $5.9 billion was raised in 426 deals.
• Within the United States, California companies again received the highest level of funding
and signed the most deals in 2019, bringing in $2.1 billion in 124 deals.
• A total of 1,288 investors participated in VC funding rounds for Digital Health companies in
2019, compared to 1,396 investors in 2018.
• Five IPOs brought in a total of $1.4 billion in 2019.
• Digital Health M&A activity saw 169 transactions, compared to 223 transactions in 2018.
There were 32 disclosed transactions in 2019 compared to 46 disclosed transactions in 2018.
• Top M&A transactions in 2019 were: the acquisition of Medidata for $5.8 billion by Dassault
Systemes, followed by The EQT VIII Fund (EQT) and Canada Pension Plan Investment
Board (CPPIB) majority stake acquisition in Waystar valued at $2.7 billion, Fitbit’s acquisition
by Google for $2.1 billion, Golden Gate Capital’s acquisition of Ensemble Health Partners
(51% stake) for $1.2 billion, Agfa-Gevaert Group’s agreement to acquire Dedalus Holding for
$1.07 billion, and Baring Private Equity Asia’s agreement to acquire CitiusTech for over $1 billion.
Top Digital Health M&A Transactions in 2019 By Disclosed Amount
Company Terms/Amount ($M) Acquirer
5,800
2,700
2,100
1,200
1,070
1,000
Source: Mercom Capital Group
2019 Fourth Quarter and Annual Digital Health Funding and M&A Executive Summary
6 Copyright 2010-2020 | Mercom Capital Group | www.mercomcapital.com | [email protected]
……………
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Source: Mercom Capital Group
Digital Health VC Funding By Amount in Q4 2019 (US$ in Millions)
2019 Fourth Quarter and Annual Digital Health Funding and M&A Executive Summary
7 Copyright 2010-2020 | Mercom Capital Group | www.mercomcapital.com | [email protected]
Introduction……………………………………………………………………….……...……….… 4
Key Findings……………………………………………………………………….……… 6
2019 Digital Health Funding and M&A ……………………………….……………….. 10
VC Funding 2010-2019………………………………………………………….….……………… 10
VC Funding …………………………………………………………………..….….……………… 11
Q4 - VC Funding………………………………………………..………….………..…… 11
VC - Funding by Category…………………………………………….……..………… 12
VC - Funding by Category 2010-2019……………………………………..…….……… 17
VC - Funding by Sub-Category …………….…………………………..…..….……… 18
Health Information Management…………….……………..….……………. 19
Mobile Health…………….……………..….………………………………….. 25
Telehealth…………….……………..….…………………………………..…. 29
Scheduling, Rating & Shopping…………….………………...….…………. 31
Personal Health…………….…………………………………..…..…………. 33
Social Health…………….……………..….…………………………..………. 35
Q4 - VC Funding by Category …………………………………….……….…..…….. 37
Q4 - Health Information Management…………….……………..…….……. 39
Q4 - Mobile Health…………….……………..….…………………………….. 43
Q4 - Telehealth…………….……………..….……………………………..…. 49
Q4 - Personal Health…………….…………………………………..….……. 51
Q4 - Scheduling, Rating & Shopping…………….…………..….……….…. 52
Q4 - Social Health…………….……………..….…………………….………. 53
VC Funding by Stage……………..………………………………..…….….……..….…. 54
Q4 - VC Funding by Stage………………………………………………...….………..... 56
VC - Activity by Country…………..………………………………................................. 58
2019 VC Funding by U.S. State……………………………...…..……………….......... 61
Q4 - VC Activity by Country…..………………………………………..….……….......... 63
Q4 - VC Funding by U.S. State…………………….……….…………....……….......... 64
Top VC Funding Rounds….………………………………….……………................... 66
Q4 - Top VC Funding Deals …..…………………...…………….….……...………….. 67
2010 - 2019 Top VC Investors……..………….….……….…...…………………..…… 69
2019 Top VC Investors……..………….….……….…...……………..…………..…….. 70
Q4 - Top VC Investors….……………………..…………...….…………………………. 71
Q4 - VC Deals………………………..……………………………….………..….….…… 72
Q4 - VC Investors by Technology Areas….………………..……...………...….……… 85
Top Accelerators/Incubators…………..………….……………………………………… 101
Debt and Public Market Financing……………………….………………….…………………… 102
Top 5 Debt and Public Market Financing Deals……….………….…………………… 103
Q4 - Debt and Public Market Financing Activity………….…………………………… 104
Initial Public Offering (IPO)…………………………….……………….…………..………..…… 105
TABLE of
CONTENTS
2019 Fourth Quarter and Annual Digital Health Funding and M&A Executive Summary
8 Copyright 2010-2020 | Mercom Capital Group | www.mercomcapital.com | [email protected]
Merger and Acquisition (M&A)…………………………….………………………………...…… 110
Q4 - M&A by Quarter……………………………………………………………………… 111
M&A by Category ………..…………………………………………….….…..…….…… 112
M&A by Category ………..……………………………………….…….……..…….…… 117
M&A by Sub- Category ………..…………………………………..………….…….…… 118
Multiple Acquirers………..……………………………………….……..….……............ 119
M&A - Activity by Country…………..………………………………............................. 125
Top M&A Transactions….……………………………………….………….................. 127
Q4 - M&A Transactions….………………….…………………………………………… 130
Q4 - New Healthcare Funds….………………….……………………………………… 134
Q4 - Restructuring and Downsizing….………………….……………………………… 135
2019 Fourth Quarter and Annual Digital Health Funding and M&A Executive Summary
9 Copyright 2010-2020 | Mercom Capital Group | www.mercomcapital.com | [email protected]
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