Summary of the State of Digital Health 2021
Core Content
The State of Digital Health 2021 report provides a comprehensive overview of global digital health dealmaking, funding, and exits in the private market. It highlights the significant growth in the sector, driven by the need for digital solutions during the pandemic, and offers insights into key trends across various sub-sectors and regions.
Main Points
Funding Trends
- Global Digital Health Funding: Reached a record $57.2 billion in 2021, up 79% from 2020.
- US Funding: Dominated the market with $37.9 billion in 2021, the highest on record. Q4'21 alone saw $10.8 billion in funding.
- Mega-rounds: Increased to 154 in 2021, up from previous years. These mega-rounds accounted for 57% of total Q4'21 funding and 63% of total US funding.
- Late-stage Valuations: Median late-stage deal size increased by 87% to $73 million, while median late-stage valuation jumped to $1.5 billion, nearly 3x 2020 levels.
- Time to Raise Funds: The median time between Series C and D raises decreased from 22 months in 2017 to 15 months in 2021.
Unicorns & Valuations
- Total Unicorns: Reached a new high of 85 in 2021, with 13 new unicorns emerging in Q4'21.
- US Dominance: The US accounted for nearly 77% of new unicorns in 2021, with 6 out of 13 unicorns offering telehealth solutions.
- Top Unicorns by Valuation: Medable ($2.1B), SWORD Health ($2.0B), H2O.ai ($1.7B), Truepill ($1.6B), and others.
M&A Activity
- Global M&A Deals: Reached a record 574 in 2021, up 44% from 2020.
- Consolidation Trend: Expected to continue as dominant players emerge in the fragmented market.
Regional Highlights
- Asia: Second-largest global market with $10.7 billion in 2021 funding, but lagged behind the US in Q4'21.
- Europe: Recorded $1.8 billion in Q4'21, with 72% of deals in early-stage.
- LatAm: Achieved a record $340 million in 2021, up 128% YoY, with 72% of deals in early-stage.
Sub-sectors
- Digital Therapeutics: Secured $3.4 billion in 2021, more than doubling from previous years. These startups are demonstrating improved patient outcomes in clinical trials.
- Mental Health/Wellness Tech: Funding increased by 139% YoY to $5.5 billion, driven by the demand for digital solutions in mental health.
- Clinical Trials Tech: Showed strong growth, with a focus on improving patient outcomes and streamlining processes.
- Telehealth: Continued to be a major area of interest, with 6 out of 13 new unicorns in Q4'21 offering telehealth.
- Health IT: Experienced a 47% increase in average deal size in 2021, with the US leading in deal share.
Key Information
Top Equity Deals in Q4'21
| Rank |
Company |
Round Amount |
Round Date |
Round Valuation |
Select Investors |
Country |
| 1 |
Devoted Health |
$1.1B |
Series D 2021-10-08 |
$12.6B |
SoftBank Group, Uprising Capital, Andreessen Horowitz, General Catalyst, Premji Invest |
United States |
| 2 |
Medlinker |
$514M |
Series E 2021-12-13 |
$3.9B |
Sino Biopharmaceutical |
China |
| 3 |
Magic Leap |
$500M |
Series F 2021-10-11 |
$2.0B |
N/A |
United States |
| 3 |
Neumora Therapeutics |
$500M |
Series A 2021-10-07 |
N/A |
ARCH Venture Partners, Amgen |
United States |
| 5 |
Hinge Health |
$400M |
Series E 2021-10-28 |
$6.2B |
Coatue Management, Tiger Global Management |
United States |
Top Seed/Angel Deals in Q4'21
| Rank |
Company |
Round Amount |
Round Date |
Select Investors |
Country |
| 1 |
Insurights |
$22M |
Seed VC 2021-10-19 |
Group 11, Cresson, Good Company, Insurtech Israel |
United States |
| 2 |
Udo |
$20M |
Seed 2021-10-27 |
N/A |
United States |
| 3 |
Mayd |
$15M |
Seed VC 2021-10-14 |
468 Capital, Earlybird Venture Capital, Target Global |
Germany |
| 4 |
Lynx.MD |
$12M |
Seed VC 2021-12-13 |
MizMaa Ventures, TriVentures, UpWest, Amdocs Ventures, New York Life Ventures |
Israel |
| 5 |
Lyn Health |
$10M |
Seed VC 2021-12-06 |
Summer VC |
United States |
| 5 |
Practice |
$10M |
Seed VC 2021-10-28 |
Andreessen Horowitz, Tony Robbins |
Canada |
Top Series A Deals in Q4'21
| Rank |
Company |
Round Amount |
Round Date |
Select Investors |
Country |
| 1 |
Neumora Therapeutics |
$500M |
Series A 2021-10-07 |
ARCH Venture Partners, Amgen |
United States |
| 2 |
EasyHealth |
$100M |
Series A 2021-11-18 |
Anthemis, QED Investors, Brewer Lane Ventures, Healthy Ventures, Nationwide Ventures |
United States |
| 3 |
METiS Therapeutics |
$86M |
Series A 2021-12-07 |
China Life Insurance, PICC Capital, 5Y Capital, FreesFund, Lightspeed China Partners |
United States |
Top Series B Deals in Q4'21
| Rank |
Company |
Round Amount |
Round Date |
Select Investors |
Country |
| 1 |
Elemy |
$219M |
Series B 2021-10-06 |
SoftBank Group, General Catalyst, Bling Capital, Felicis, 8VC |
United States |
| 2 |
immunai |
$215M |
Series B 2021-10-27 |
Koch Disruptive Technologies, 8VC, Alexandria Venture Investments, Piedmont Investment Advisors, Talos |
Israel |
| 3 |
Owkin |
$180M |
Series B 2021-11-18 |
Sanofi Ventures |
United States |
Top Series C Deals in Q4'21
| Rank |
Company |
Round Amount |
Round Date |
Select Investors |
Country |
| 1 |
Cerebral |
$300M |
Series C 2021-12-08 |
SoftBank Group, Access Industries, Artis Ventures, WestCap Group, Prysm Capital |
United States |
| 2 |
Edge Medical Robotics |
$200M |
Series C 2021-11-06 |
Boyu Capital, Sequoia Capital China, Temasek, 3H Health Investment, Guoce Investment |
China |
| 3 |
Twin Health |
$140M |
Series C 2021-10-06 |
Sequoia Capital India, Corner Ventures, Helena Capital Partners, ICONIQ Growth, LTS Investments |
United States |
Top Series D Deals in Q4'21
| Rank |
Company |
Round Amount |
Round Date |
Round Valuation |
Select Investors |
Country |
| 1 |
Devoted Health |
$1.1B |
Series D 2021-10-08 |
$12.6B |
SoftBank Group, Uprising Capital, Andreessen Horowitz, General Catalyst, Premji Invest |
United States |
| 2 |
Medable |
$304M |
Series D 2021-10-26 |
$2.1B |
Blackstone, GSR Ventures, Tiger Global Management, Sapphire Ventures, Western Technology Investment |
United States |
| 3 |
Freenome |
$300M |
Series D 2021-12-07 |
N/A |
Perceptive Advisors, RA Capital Management, Andreessen Horowitz, Bain Capital, Fidelity Investments |
United States |
Top Series E+ Deals in Q4'21
| Rank |
Company |
Round Amount |
Round Date |
Round Valuation |
Select Investors |
Country |
| 1 |
Medlinker |
$514M |
Series E 2021-12-13 |
$3.9B |
Sino Biopharmaceutical |
China |
| 2 |
Magic Leap |
$500M |
Series F 2021-10-11 |
$2.0B |
N/A |
United States |
| 3 |
Hinge Health |
$400M |
Series E 2021-10-28 |
$6.2B |
Coatue Management, Tiger Global Management |
United States |
Top Companies by Mosaic Score in Q4'21
| Rank |
Company |
Mosaic Score |
Round Amount |
Round Date |
Round Valuation |
Select Investors |
Country |
| 1 |
Innovaccer |
940 |
$150M |
Series E 2021-12-15 |
$3.2B |
Mubadala Capital, B Capital Group, Dragoneer Investment Group, M12, Steadview Capital |
United States |
| 2 |
BetterUp |
930 |
$300M |
Series E 2021-10-08 |
$4.7B |
ICONIQ Growth, Lightspeed Venture Partners, Wellington Management, Sapphire Ventures, Plus Capital |
United States |
| 3 |
Cybereason |
920 |
$50M |
Series F 2021-10-19 |
N/A |
Google Cloud Platform |
United States |
| 3 |
H2O.ai |
920 |
$100M |
Series E 2021-11-07 |
$1.7B |
Commonwealth Bank of Australia, Celesta Capital, Crane Venture Partners, NVIDIA, Wells Fargo Strategic Capital |
United States |
| 3 |
Suki |
920 |
$55M |
Series C 2021-12-07 |
N/A |
March Capital Partners, Breyer Capital, Flare Capital Partners, Venrock, InHealth Ventures |
United States |
Conclusion
The digital health sector experienced unprecedented growth in 2021, with record funding, a surge in mega-rounds, and an increase in the number of unicorns. The US continued to lead in all aspects, while emerging markets like LatAm and India showed promising growth. The trend towards larger late-stage deals and faster progression from mid- to late-stage financing indicates a maturing market with increased investor confidence in digital health innovations.
