Funding to gamified health startups has jumped 136% YoY and makes up 61% of aggregate funding to the overall gamification space in the last two years.
Over the last year, companies that leverage game mechanics and design into traditionally non-game contexts have raised nearly $239M across 67 deals. Occupying the space broadly referred to as gamification, these venture-backed startups span a wide variety of applications ranging from workforce management and recruiting (Hoopla Software, True Office, Zao) to sales and marketing (LevelEleven, Influitive) to pure-play gamification vendors (Badgeville, Big Door, Gigya).
But like other buzzwords before it like hyperlocal and location-based services, is investor buzz around the gamification concept starting to wear off?
On a year-over-year basis, venture funding to gamification-related companies has dropped 17% while deal activity has dipped 14%, as shown in the chart below. While Q2’12 saw a jump in funding behind follow-on deals to the likes of Badgeville, Gigya and SessionM, over 77% of deals in the past year have come at the Seed or Series A stages.
Not shown in the decline in deals and dollars to the gamification space as a whole is the notable funding growth to the gamified health sub-category. In fact, YoY funding to gamified health startups has jumped over 136%. Just last quarter, over $78M went to digital health companies applying gamification techniques such as Keas (Atlas Venture & Ignition Partners) and NEA-backed Welltok while in the last year $145M has gone to health-related gamification companies as shown below. Though that’s only a small slice of the $1.5B in funding to the digital health industry, it’s nearly 61% of aggregate funding to gamification overall.
This report was created with data from CB Insights’ emerging technology insights platform, which offers clarity into emerging tech and new business strategies through tools like:
- Earnings Transcripts Search Engine & Analytics to get an information edge on competitors’ and incumbents’ strategies
- Patent Analytics to see where innovation is happening next
- Company Mosaic Scores to evaluate startup health, based on our National Science Foundation-backed algorithm
- Business Relationships to quickly see a company’s competitors, partners, and more
- Market Sizing Tools to visualize market growth and spot the next big opportunity