Big Data Healthcare Analytics Startups See 161% More Funding than All of 2013 in First 6 Months of 2014

Within Big Data, the Healthcare Analytics space is very hot with funding on pace to potentially hit $1 billion in 2014. In February of this year, we highlighted the growth in the space in 2013, and in just the first half of 2014, the space is attracting even more funding. Through the first half of 2013, Healthcare Analytics startups have taken in over $400 million in investor funding versus $155 million in all of 2013.  This represents 161% funding growth already.

For reference, healthcare analytics refers to startups providing “verticalized predictive and prescriptive data and analytics solutions for the healthcare sector.”

The funding growth has been driven by a number of sizable financing deals including to Google Ventures-backed Flatiron Health and Sequoia Capital-funded Health Catalyst.

But outside of the few mega-financings in the space, there is a lot of early stage activity in the space. As healthcare providers and associated parties increasingly work with critical troves of data, the diversity of investor-backed startups in the healthcare data analytics space has grown immensely. Below is a cross-section of data analytics companies that have received funding this year tacking different areas of the healthcare data analytics sector.  Predictive healthcare analytics in particular seem to be a burgeoning area of investment.

Ambient Clinical Analytics  – Analytic software tools for CU, operating and emergency rooms backed by Mayo Clinic, The Social+Capital Partnership and Rock Health.

Apixio – Data analytics solution using NLP and machine learning to make sense of healthcare patient risk. Investors include Bain Capital Ventures.

Lumiata – Medical science-based graph analytics for hospital networks and insurance carriers. Backed by Khosla Ventures.

Healthcare Interactive – Software for insurance providers, health systems and third-party admins to identify potential health risks and cost drivers. Investors include Grotech Ventures and Harbert Venture Partners.

Trinity Pharma Solutions – Mobile analytics and cloud data management for life sciences. Investors include Health Enterprise Partners and Milestone Venture Partners.

Zephyr Health– Data analytics tools and apps for research and development of therapies backed by Kleiner Perkins Caufield & Byers and JAFCO Ventures.

The chart below highlights the funding spike in the healthcare data analytics space on a per year basis since 2012.  2014 will clearly be a record-setting year.

For more healthcare analytics financing and exit data and interactive rankings, check out the CB Insights Venture Capital Database. Sign up for free below.