Digital Health Continues to Break Funding Records as Global Companies Raise $30.7 Billion in Funding venture capital 2021, according to Digital Health Business & Technology.

Investments in 206 deals in the fourth quarter were $7.6 billion, down 6% from the record $8.1 billion raised by digital health companies in the previous quarter. But venture capital funding rose 68% year over year, as digital health companies raised just $4.5 billion in 139 deals in the fourth quarter of 2020.

Venture capital investors have poured $89 billion into digital health companies since 2010. More than a third of those investments took place in the last year.

Here are the five digital health industries that will receive the most VC funding in 2021.

1. Telemedicine: $9.5 billion (up 111% year over year). Telehealth continues to lead digital health financing, attracting 28% of investment across 230 deals.although telemedicine utilization Having declined since the early stages of the COVID-19 pandemic, healthcare executives still expect telehealth to stabilize at a higher rate than before the pandemic. The largest telehealth deal of the quarter was a $500 million Series D round raised by Ro, a direct primary care provider and platform that started selling hair loss supplements and erectile dysfunction drugs to men.

2. Data analysis: $3.2 billion (up 76% year over year).This sub-sector is the most well-funded in the broader category of software companies that help healthcare providers manage health data. The implementation of federal data-sharing regulations designed to facilitate the exchange of information between healthcare organizations has spurred more investment in this area. Komodo Health, an AI-based supplier data analytics platform, led a $220 million Series E round of funding.

3. Mobile Health Apps: $2.6 billion (up 86% year over year). Apps account for nearly half of the larger mobile health category, which also includes wearable sensors and mobile devices. The category has taken off as the pandemic intensified the need for virtual care. A growing number of employers looking to improve employer benefits have embraced mobile health tools, also contributes to growth. Digital pharmacy startup Capsule has raised its largest funding round of $300 million in 2021.

4. Health: $2.4 billion (up 209% year over year). Fueled by nine funding rounds of more than $100 million, health startups are growing faster than all other digital health companies. Investors have poured money into health companies hoping to profit from rising consumer health spending. Unlike digital health startups, which primarily sell to suppliers, payers, and manufacturers, health companies can get to market quickly, burn less cash and provide a faster return on investment. Noom, a psychology-based weight loss startup, has raised the largest Series F round of $540 million in its category.

5. Wearable sensors: $2.2 billion (up 170% year over year). Companies in this category participated in 33 deals in 2021, just one more than in 2020. But the average deal size was more than two-and-a-half times that, a sign of investor excitement about wearables’ potential to transform healthcare. Hinge Health, a physical therapy startup that uses wearables to provide remote care, raised the most funding among wearables startups last year, made $600 million in Series E funding. Its $6.2 billion valuation makes it one of the most valuable digital health companies.