Since my company, Rock Health, began researching and tracking funding into the digital health space in 2011, we've reported steady growth nearly every year. 2018 was no different, with a massive $7.9 billion in venture filling start-ups' coffers. But the signals we're seeing — large, late-stage rounds at high valuations and shorter periods between early rounds — are those of an investment cycle nearing its peak.
Does this peak signal a "bubble?" The so-called b-word has been sneaking into conversations with our fellow investors, so we dedicated our year-end number crunching to measuring the froth.
In our view, digital health is not in a bubble. But we've heard opposing views on that from other investors, and so we welcome a healthy debate as this cycle unfolds.