Why Don ’t Digital Health Investors Finance Tough Medical Issues?

Why did activity trackers flood the digital health market, while there’s barely a company dealing with menopause, arthritis, or rare diseases? How do digital health investors decide when it comes to funding a new project, and what are the specific factors to take into account in relation to the healthcare market? We looked around what could scare off financiers from funding tough medical issues, and have a suggestion on how to bring forward solutions for marginalized health problems. Read on. Investment in digital health for everyone? Investment in healthcare, especially in the digital health market, is growing steadily in the last years. In 2018, investment in digital health startups even hit a new high totaling $8.1 billion across 368 deals, although the market seems to be only slightly slowing down when looking at the first numbers from 2019. All in all, digital health companies raised a total of $4.2 billion in 180 deals during the six-month period, Rock Health found. This happens in spite of the fact that ninety percent of start-ups in the medical market will die or be ‘acqui-hired’ within 2 to 5 years from inception. According to Mercom’s annual report, the highest funded categories in 2018 included data analytics with $2.1 billion, mHealth apps with $1.3 billion, telemedicine with $1.1 billion, mobile wireless technology companies with $847 million, clinical decision support with $714 million, and wearable sensors technology companies with $703 million...
Source: The Medical Futurist - Category: Information Technology Authors: Tags: Business Future of Medicine companies company digital digital health digital health startups finance funding Healthcare investment technology Source Type: blogs