While NY is often seen as a hub for ad tech, fin tech, ecommerce and fashion, the digital health revolution appears to have also made its way to the Big Apple. From tech-enabled healthcare savings and insurance providers to medical software and healthcare data analytics platforms, a range of tech companies in the digital health market (also referred to as health IT or healthcare IT) have established themselves in New York. And they have plenty of investor cash in tow.
Counting ZocDoc‘s projected $150M fundraise (which would make it the most valuable VC-backed private company in NY), three of the top 10 most well-funded VC-backed NY companies are from the digital health space.
NYC currently has best cluster of health informatics startups: @solvebio @flatironhealth @oscarhealth among others. #Investors
— David Lee (@davidlee) May 15, 2014
According to CB Insights data, digital health companies in New York have raised over $335M in the first six months of 2014. To put the figure in perspective, digital health companies in NY have raised more funding in H1 2014 than the past 12 quarters leading up to this year. Over the past 12 months, funding has increased 257% while deals have risen 20%.
NY Digital Health Ecosystem Still Early
Of course, digital health is itself still an emerging market, and NY’s market illustrates this. While NY now has several well-funded digital health companies, the majority of activity in the space is taking place at the early-stage. 3/4ths of all deals over the past 24 months have occurred at either the seed/angel or Series A stages. About 1/5th of deals over the two-year period have gone to the Series B stage including oncology data startup Flatiron Health‘s huge $130M round led by Google Ventures.
To illustrate the range of tech companies tackling digital health solutions in NY, a cross-section of companies that have received early-stage funding in the last year are highlighted below:
- Sherpaa Health – Healthcare delivery startup for non-emergency medical and health services backed by SoftBank Capital and O’Reilly AlphaTech Ventures
- SolveBio – Clinical-grade genomics data platform backed by investors including SV Angel and Andreessen Horowitz
- Noom – Fitness programs for smartphone users backed by RRE Ventures, TransLink Capital & Qualcomm Ventures among other investors
- LuminateHealth – Web-based service providing visually enhanced lab results to patients backed by KEC Ventures
- eCaring – Cloud-based healthcare coordination system and software backed by Ascent Biomedical Ventures
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