Digital Health Investment Picks up Pace

By October 12, 2012 4 comments
Keywords : Smart city, Health, Europe
HealthXL Startupbootcamp Dublin

Professional investors – especially corporate venture units – are increasingly eyeing up business initiatives combining healthcare and digital technologies.

Investment in the digital health sector is expected to double over the next twelve months. That was the conclusion of a study* presented in London on 4 October to investors, healthcare professionals and medical sector executives at an event marking the launch of HealthXL, an accelerator programme set up under the umbrella of the Dublin-based accelerator Startupbootcamp to find innovative startups using technology in the health industry.  Investment in Digital Health, now regarded as a key emerging sector for investors, has already overtaken the Tools & Technologies and Diagnostics segments in attracting funds, presenters at the event revealed.

An emerging investment sector

Another recent report from Burrill & Company, which specialises in channelling venture capital into life sciences companies, points to a 194% leap in total financing for Digital Health companies, defined as a “segment fuelled by the convergence of information, wireless and healthcare technologies,” in first-half 2012, versus the same period last year. And the lion’s share of this capital is flowing in from the venture units set up by major corporates. Among the most active investors we find Philips, Abbott, Boston Scientific and Johnson & Johnson. One third of all buyouts in the Digital Health sector over the last year received funds from corporate-based venturing units. Total exit valuations in this sector are now three times as high as those from social networks and twice as high as from mobile applications, presenters told the audience.

Time to call on Big Data to aid diagnosis and prescription?

New technologies have a vital role to play in improving medical care, says the Vital Signs report. Its authors point out that nowadays “consumer technology is outpacing the health delivery system.” Meanwhile, “medicine has become too complex”, with information doubling every five years, most of it unstructured, warned Steven Shapiro, Chief Medical and Scientific Officer at the University of Pittsburgh Medical Centre. So doctors are struggling to keep up and “only 20% of the knowledge clinicians use today is evidence-based,” he estimated. This means that fully one in five medical diagnoses in the United States is currently “inaccurate or incomplete”, leading to 1.5 million errors in the prescribing or delivery of medicine in the US each year, speakers at the HealthXL event alleged.  

*Vital Signs: Startups in Digital Health

Page top

4 Comments

It was about time for this to happen. So many people need this kind of support. I was beginning to think that we cannot rely on our health system. I am glad I was wrong. Now I am really hopeful that I'll have coverage for Januvia.

Submitted by sally - on August 28, 2013 at 02:05 pm

Professional investors now know that the easy way to increase the profit of their business is by investing on initiatives combining healthcare and digital technologies. As this field is the most booming one the investors will face no investment loss.
for more details

Submitted by Magrose (not verified) - on November 19, 2013 at 09:07 am

I have gained a lot of knowledge from your post. You have done a good job. Thanks for sharing this post. -

Submitted by RingKing (not verified) - on November 21, 2013 at 07:40 am

Your article is excellent and i can find the important information which i'm looking for on the internet.You really do a good job!Investment in the digital health sector is expected to double over the next twelve months. That was the conclusion of a studypresented in London on 4 October to investors, healthcare professionals and medical sector executives at an event marking the launch of HealthXL, an accelerator programme set up under the umbrella of the Dublin-based accelerator Startupbootcamp to find innovative startups using technology in the health industry. Thanks for your introduction.This is a wonderful content. I will bookmark this site and visit again. It is very informative. Thanks for sharing.

Cheap American Idol Season 11 DVD|NCIS Season 11 DVD |The Closer Season 7 DVD | The Closer Seasons 1-7 slae

Submitted by Angela (not verified) - on November 27, 2013 at 09:07 am

Legal mentions © L’Atelier BNP Paribas