Telehealth could be at the heart of a new beat in VC-backed healthtech
Summary
Healthtech truly broke out in 2013, surging to $2.5 billion invested across 504 deals, and the sector has steadily grown since then, with 2018 setting record highs that more than tripled 2013s total value; through 1H, this year is on pace to nearly quadruple that total.Particularly eye-catching in 2Q was ClickDiagnostics $100 million Series C from the Hutchison Port Group and Plug and Play Tech Center . ClickDiagnostics is developing a software platform to help doctors diagnose patients more efficiently.Heres a closer look at US VC investment trends in healthtech since 2009:The growth of the sector overall is largely attributed to an increase in expensive chronic health problems, the continued rise in healthcare costs and rapid consumerization in the space, particularly with the growth in mobile healthcare options. As such, a key element of healthtechs overall potential is the subsector of virtual health, colloquially known as telehealth, which focuses on connecting distant patients with doctors via multimedia communication. The niche scored nearly $895 million of capital at its peak in 2018.While telehealth is still somewhat nascent, accounting for only about 10% of healthtechs broader deal activity last year, the rapid advancement of technology is helping to make startups in the space possible. For example, in 2018, US health insurer Anthem refused to pay for emergency room visits it deemed unnecessary, instead advocating for lower-cost alternatives such as telehealth.