Venture capital funding in healthcare AI pops in Q2
Venture capital funding continues to rise in the healthcare artificial intelligence space
A new report from CB Insight shows that venture capital investment surged in startups for healthcare artificial and mental health and wellness.
Funding for both sectors hit new records in the second quarter.
During the first half of the year, investment in healthcare companies globally hit $26.9 billion. That figure jumped $400 million compared to the first half of 2019.
The report shows that Q2 investment in healthcare AI hit $864 million. That represents about a $100 million increase during the same period in 2018. CB Insights linked a $200 million round led by Tempus, an AI-enabled precision medicine software firm.
The same report showed that investment in mental health and wellness companies hit $321 million across 26 deals during Q2 2019. That represents a $94 million increase from the same period in 2018.
The report shows that the top investors included Centene, Google Ventures, Norwest Venture Partners, and Y Combinator.
Venture Capital Health Spending Dips; Unicorns Rally
On a macro level, the report says that venture capital funding in the spaces declined across Asia, North America, and Europe. Despite an overall rise compared to the first half of 2018, funding to Asia-based startups fell 39% in Q2. Meanwhile, funding for North American and European firms also declined.
The report also noted there are 38 unicorns in these sectors. All combined, these Venture capital-backed startups are worth $90.7 billion. U.S. unicorns include Hims, One Medical, ZocDoc, Calm, 23andMe, and Tempus.
Female Healthcare Startups
Finally, the report showed that venture capital funding for women’s health deals showed strong growth during the second quarter of 2019.
Women’s health companies saw a 246% increase in funding in the first half of 2019 compared to the same period in 2018. Companies listed include Kindbody and Modern Fertility, which target traditional fertility services.
A free copy of this report can be obtained at CB Insights.
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