Digital health bounces back in Q2, sees record funding in 2020

Overall digital health funding in Q2 2020 was $2.4 billion, 33% higher than the quarterly average for the prior three years. (Graphic: Chris Nicholls)

With doctors’ offices closed due to COVID-19 or open but patients reluctant to be seen in person for fear of infection, the demand for digital health care has never been greater — a fact that is not lost on investors. Despite the overall economic uncertainty brought on by the pandemic, digital health care companies in the U.S. are on pace to have their best funding year ever.

According to a new study by Rock Health, digital health companies raised $5.4 billion in venture funding through the first half of 2020, which projects out to $10.2 billion for the full year, according to the study. The previous high for the first six months of any year was $4.2 billion in 2019. For the study, Rock Health spoke with leading health care companies and investors at prominent health care-focused venture funds.