Venture capital funding for digital health companies reached an unprecedented level in 2014, continuing to significantly outpace traditional healthcare sectors.

With more than $4 billion in VC funds pouring into the space, this year set an all-time record for total dollars raised, according to information technology incubator Rock Health. In fact, 2014 was such a banner year for digital health that VC funding through the first half of the year actually exceeded the entire 2013 total.

Rock Health says 287 companies were funded this year—107 more than last year, representing 58 percent year-over-year growth. The most popular categories for funding in digital health included analytics/big data, healthcare consumer engagement, digital medical devices, personalized medicine, telemedicine, and population health management.

Categories that Rock Health believes will continue to see significant growth in 2015 include telemedicine, payer administration, and personal health tools/tracking, digital therapies, healthcare consumer engagement, and hospital administration. Payer administration, in particular, is well positioned for growth as payers increasingly turn to technology for improved solutions and cost savings.

Rock Health, which funds and supports early stage healthcare companies, provided Health Data Management with a preview of its 2014 year-end digital health funding data. The firm, which has tracked digital health funding since 2011, will release its year-in-review report on January 1, 2015.

The report will include the leading investors in the space, deals by stage, the largest mergers and acquisitions, geographic distribution of dollars raised, and take a look at the public digital health markets, among other topics.

For its part, Rock Health reveals that it has recorded 120 percent year-over-year growth for total dollars invested, with absolute growth of more than $2.2 billion. The company also tells Health Data Management that its compound annual growth rate over the past four years is 44 percent. Currently, Rock Health has more than 50 start-ups in its portfolio.

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