Health Technology Surprisingly On the Rise

Posted on Wednesday, February 27th, 2013 at 1:35 pm by shauli

As technology advancements are made in communication and media, so too is health technology broadening and progressing.  Wearable tracking devices and heart monitors are small, lighter, and better at recording information.  Technology used in the diagnosis and treatment of diseases has gotten more precise and in surgery and operations, technology means less invasive work and quicker healing times.  Now, healthcare providers are using mobile health apps that will allow patients with quick access to information.  This convergence of technology and healthcare is exciting on all levels.

You would think with all of the positive advances being made and the promise for the future that venture capitalists would be jumping on the HealthTech bandwagon to invest.  But this isn’t the case.  It has been really hard, actually.  According to Ernst & Young, investors are holding off on putting money into the early stages of companies and instead are looking into focusing on more mature businesses that have more substantial experience in the market.  But this may not always be the case.  Castlight Health is a company that is not backed by big name venture capital and successfully raised over $100 million in one month alone, which is so impressive it may have set a record for investments in a health technology company.

But as far as new startup companies go in raising money, they are doing a considerably good job.  By the end of the fiscal year 2012, HealthTech companies raised 26% more than they had the year before, a staggering 27.4 billion dollars.  Most of these investments were debt financed and only time will tell if this strategy is successful for companies.  Just as the music industry changed drastically in terms of financing when technology changed everything, the market for health technology also must adapt.  There is a focus on treatment, increased efficiency and the outcomes for patients.  This adaptability in the market will be a factor in funding for research and development and the future of HealthTech.


Leave a Reply