Even with the situation of the pandemic – or more accurately because of it – 2020 a milestone year for digital health. By the third quarter, funding had already hit an annual record, according to Rock Health, a venture fund that tracks investments in the sector. Several factors fueled the massive deal flow. After Covid-19 hit, digital health adoption accelerated, while the stock market’s rebound and pandemic-initiated policy and regulation changes facilitated big competitive moves and commercialization activities, according to a Rock Health report.
Amid this funding explosion, the Bay Area remained a hot spot for digital health. VCs poured $5.5 billion into local companies last year, reflecting 39% of national funding total in the sector.