This blog post examines the different components of the health technology ecosystem. We will illustrate what the categories of innovation are and which categories have the most companies. We will also compare the categories in terms of their funding and maturity.
Digital Medical Devices Is the Largest Health Technology Category
Let’s start off by looking at the Sector Map. We have classified 2250 health technology startups into 22 categories that have raised $81 billion. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.
We see that Digital Medical Devices is the largest category with 307 companies. These companies build IT-enabled medical and diagnostic devices for doctors. These devices include detection equipment, monitoring equipment, and surgical tools. Some example companies include Signostics, MediBeacon, Stimwave, and AliveCor.
Let’s now look at our Innovation Quadrant to find out...
As we previously noted, health technology funding is experiencing robust growth. We've now gone one level deeper in our analysis on our Health Technology Report and Research Platform and determined that the health technology sector is starting to mature.
This conclusion comes from two key observations:
- Funding amount percentages showed a slight shift to later stages
- Funding count percentages showed a clear shift to later stages
We’ll explain these key observations with some graphics and discussions below.
To help set the stage, the graphic below highlights health technology funding amounts over time. As you can see, the sector’s overall funding demonstrated consistent growth.
Health Technology Funding Amount Percentages Shifting Slightly to Later Stages
Let’s examine the health technology funding amounts by round as a percentage of the total funding amount by year.
The above graph indicates that there has been a slight shift to later-stage...
The following two graphs summarize the rounds of funding going into the Health Technology space. Please note these graphics are made using data through August 2017.
The graph above shows the total amount of VC funding broken out by round. From 2006 to 2016, we saw a general increase in the overall sector funding, with the total amount peaking in 2015 and declining slightly thereafter. Earlier stage rounds (Series A, B, and C) make up a larger share of the total amount.
The graph above shows the total count of funding events broken out by round. From 2006 to 2016 we’ve seen an upward trend that peaked in 2014 and declined slightly thereafter. Earlier stage funding such as Seed, Series A, and Series B events make up the majority of funding event counts.
We are currently tracking 2040 Health Technology companies in 22 categories across 57 countries, with a total of $52.3 Billion in funding. Click here to learn more about the full Health Technology market report.
The above graph compares the total venture funding in each Health Technology category to the number of companies in the category. The Internet of Things (IoT) Fitness category is leading the sector in funding, coming in around $3.7B. The IoT Healthcare category leads in company count, with around 175 startups in that category alone.
We are currently tracking 1,459 Health Technology companies in 21 categories across 52 countries, with a total of $29.6 Billion in funding. Click here to learn more about the full Health Technology landscape report and database.
The above graph summarizes the total funding raised by Health Technology companies each year. 2015 was the best year in Security Technology funding thus far with over $6.2B raised, followed by 2014 at a close second with just under $6B raised. 2016 is already further along this year than the entire year of 2013.
We are currently tracking 1,285 Health Technology companies in 21 categories across 48 countries, with a total of $26.5B in funding. Click here to see the full Health Technology landscape report and data.