Healthcare startup funding is at an all-time high, surpassing about $3.9 billion in mid-year funding, based on a Startup Health report, according to Tech.Co.
Here are five observations from the report.
1. In 2016, theses startups ranked as the top five deals:
• Ping An Good Doctor (Chinese patient scheduling app): Investors put forth $500 million.
• Oscar (health insurance with millennials in mind): Raked in $400 million.
• Human Longevity (health issues faced by the aging population): GE Ventures gave $220 million for big data research.
• Flatiron Health (oncology technology and treatment): Roche offered $175 million.
• Clover (affordable alternative to Medicare): Received $160 million.
2. Those startups immersed in the "patient/consumer experience" sphere have received the most funding in 2016 so far, with $958 million in investments and 51 deals.
3. "Wellness" startups ranked second, with $854 million in investments and 25 deals; and startups in the "personalized health" arena came in third, with $524 million in investments and 19 deals.
4. Although healthcare startups are raking in the funding, they still face get tripped up by regulatory issues. To get the startup off the ground, entrepreneurs may be temped to cut corners with FDA and HIPAA regulations, but this will not bode well.
5. Additionally, the first startup in any arena will likely be the most popular if successful, because it will be expensive and challenging for organizations to switch to an alterative product after the fact.
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