A record amount of money surged into digital health start-ups last year and, so far in 2015, the capital continues to rush into these private companies.
Specifically, venture funding of digital health companies, or those firms focused on the intersection of health care and technology, surpassed $2 billion through the first half of this year, according to a report released Tuesday by Rock Health, which provides seed funding for start-ups and conducts research in this area.
In 2014, these companies attracted a total of $4.3 billion in funding.
Digital health funding continues to grow faster than overall venture funding, as well as funding in the software, biotech and medical-device sectors. The categories attracting the most money include wearables, analytics and big data, and consumer tools for purchasing health-care products.
Why are venture capitalists enthusiastic about this space?
Malay Gandhi, Rock Health's managing director, points to two broad trends. For one, he says there is the powerful regulatory tailwind of the Affordable Care Act, which is allowing more people to access the health-care system.