We highlight the top 10 highest-funded digital health startups in the US every year since 2015 — and dive into how the rankings have changed as the sector grows.
The digital health space — which includes everything from disease diagnostics and management, to health insurance built on a new tech infrastructure, to AI tools for drug discovery — has been growing quickly.
Digital health startups raised a record $14.8B across nearly 1500 deals in 2018 — a 113% uptick in funding since 2015.
Using CB Insights data, we mapped out the 10 most well-funded US-based digital health startups each year since 2015.
We define digital health to include companies in the healthcare space that use technology and software as a key differentiator. Our analysis includes equity funding to private, active companies only. We exclude dead and acquired companies.
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Funding & valuation trends
The top-funded company in our graphic is cancer detection startup Grail, with $1.6B in total disclosed equity funding. Grail first appeared in the top 10 highest-funded digital health startups list in 2017, when it raised 3 tranches of Series B funding totaling $1.2B. ARCH Venture Partners and Kleiner Perkins participated in all 3 tranches. Grail has secured the top spot on the funding list ever since.
In addition to Grail, only one other company in our graphic has surpassed $1B+ in total equity funding: tech-focused health insurer Oscar, with $1.3B. Both Oscar and Grail are currently valued at $3.2B.
Biotech data company Tempus Labs ($3.1B valuation), D2C genetics startup 23andMe ($2.5B), and medical appointment booking platform Zocdoc ($1.8B) round out the top 5 highest-valued companies in our graphic.
Notably, in 2015, the top-funded digital health startup was care coordination platform Privia Health, with $414M in disclosed equity funding. As funding has flowed into the sector, those numbers have dramatically gone up: the #10 company in 2019 YTD (Bright Health, with $440M) has more funding than Privia did as #1 in 2015.
Funding to the top-funded company has jumped 286% over the same time period.
Health insurance is a common category on our graphic, especially in more recent years.
Three of the 10 top-funded digital health startups in 2019 YTD fit into this category: Oscar, a tech-enabled health insurer with a focus on telemedicine; Clover, which offers Medicare Advantage plans; and Bright Health, with offers both individual & family and Medicare Advantage plans.
Genomics is another popular focus, being explored by startups like Grail, 23andMe, and Human Longevity.
Another popular category is health record management: Kareo, Accelera, Modernizing Medicine, and Essence Group Holdings all focus at least in part on EHR management. However, these companies have seen relatively less funding than their top-funded counterparts, and none have made it into the top 5 in any year shown.
Company & investor trends
Our graphic only includes 19 companies total, reshuffled each year to create a new top 10 ranking. Of those, 4 have made the top 10 list every year: Oscar Health, 23andMe, non-invasive heart disease diagnostics company Heartflow, and therapeutic devices startup Proteus Digital Health.
Tempus Labs is the most recent addition to the chart: the biotech and data analytics company currently sits at #7 for in 2019 YTD, following a $200M Series F round in May.
NEA is followed by Google Ventures, with 13 deals, and the US Department of Health with 10.