Digital health funding reached $2.3 billion in the first half of 2014--an unprecedented level of venture capital exceeding the 2013 total--according to Rock Health, which funds and supports early stage healthcare companies.

"Not only are there more companies receiving funding, but the average deal sizes are also up to $15.6M compared to last year’s $10.0M," writes Teresa Wang, strategy manager at Rock Health, in a blog. "This explosive growth in digital health funding represents 168 percent year-over-year growth."

Venture funding of digital health in 2014 is continuing to outpace traditional healthcare sectors. And, nearly 50 percent of all funding so far this year came from six categories of digital health: payer administration ($211 million), digital medical devices ($206 million), analytics and big data ($196 million), healthcare consumer engagement ($193 million), population health management ($162 million), and personalized medicine ($150 million).

“The most popular category, payer administration, was under the radar last year with only $47M in funding. However, it saw a whopping 354 percent growth as payers increasingly turn to technology for improved solutions and cost savings,” reports Wang. “Healthcare reform is a strong tailwind into the space, underpinning at least four of the top six categories here as the entire industry needs to rethink its business models.”

Year-over-year deal growth reached 64 percent and continues to be driven by early stage healthcare companies. At the same time, while 143 companies raised more than $2 million in the first half of 2014, the eight largest deals made up more than one-third of all funding so far this year.

Addressing concerns of a potential venture bubble, Wang comments: “it’s always hard to tell from the inside, but for context, we’re still a ways off from the frothy 1999-2000 period” and the bubble.

Rock Health’s digital health funding 2014 midyear report can be found here.

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