Welcome to the newsletter. Digital Health activity slows. Life insurance + Digital Health.
Welcome to the first ever CB Insights Digital Health newsletter! I’m Nikhil, one of the research analysts at CB Insights who covers digital health.
With healthcare costs increasing (about ~17% of US GDP and growing) and regulations in the space constantly in flux, digital health continues to grow in importance.
Digital health promises to increase access, improve precision, and scale down the cost of care. Using our trends tool (which maps news chatter) we can see how more and more people are discussing the topic.
This newsletter will examine the different ways technology/software is changing health, contextualize major shifts in the industry with data, and hopefully help to sort hype and reality.
A good way to start is to see what digital health activity has looked like up to this point. You can see the full analysis and numbers here, but some highlights:
Digital health funding broke the $7B mark in 2016 despite a deal activity dip. It was the first time activity actually fell after a 6-year run, though it’s worth noting that tech as a whole slowed down in 2016.
Deal activity into digital health started picking up significantly in 2010, notably after the passage of the Affordable Care Act in the US and a couple of years after the HITECH act (when digitization of health records began).
Mega-deals (above $100M) have become increasingly prevalent in the space, with 2016 seeing 8 adding up to more than $1.9B.
In the future we’ll be taking a look at:
New emerging technologies like genomics, synthetic biology, artificial intelligence in healthcare, and more.
We’ll analyze corporate activity in the space.
Look at where existing parts of healthcare are shifting (EMRs, Wearables, etc.).
Understand what current events mean for the digital health space as a whole.
And many other topics that we think you’ll find interesting.
If you have feedback on the format of the newsletter or specific topics you’d like to hear more about, feel free to let me know.
P.S. Interesting trend to watch, life insurance corporates are entering the digital health space. Human Longevity and MassMutual signed a partnership, and Guardian Life Insurance invested in PokitDok. I can think of a few reasons why life insurance companies want us to live longer.