State Of Digital HealthGLOBAL | 2021Global data and analysis on dealmaking, funding, and exits by private marketdigital health companies Guess Less. Win More.CB Insights helps the world’s leading companies make smarter technology decisions with data, not opinion. Our Technology Insights Platform provides companies with comprehensive data, expert insights and work management tools that enable them to discover, understand and make technology decisions.Sign up for a free trial2 Identify, shortlist and benchmark companies across the entire market using Mosaic. We aggregate all the information you need about any startup and distill it into a single score.Mosaic Scores We get a perspective on healthcare tech that we can’t get anywhere else with CB Insights research.Anne WellingtonManaging Director, Cedars-Sinai Accelerator 5Digital HealthDigital TherapeuticsMental Health/Wellness TechClinical Trials TechTelehealthHealth ITDig Deeper.CB Insights clients can find and track companies using our analyst-curated Expert Collections. 6Our Top 2021 Healthcare ReportsTech Market Map Report —Digital Therapeutics in HealthcareTech Market Map Report —Clinical Trials in HealthcareDiabetes Digital Therapeutics for Healthcare Payers —ESP Vendor MatrixThe Digital Health 150: the Top Digital Health Companies of 2021Electronic Prior Authorization for Healthcare Providers —ESP Vendor MatrixBetting on Magic: Funding for Psychedelics Startups Reaches a Record HighState Of Health IT Q3’21State of Digital Therapeutics Q3'21MVP Technology Framework —Revenue Cycle Management for Healthcare ProvidersThe Hospital of the Future: 100 Companies Reimagining How Healthcare Is DeliveredOur Most Popular Client-Exclusive Digital Health Research ContentsGlobal Trends20Investment Trends21Unicorns & Valuations55Exit Trends64Investors72Collection Spotlights83Digital Therapeutics84Mental Health/Wellness Tech96Clinical Trials Tech108Telehealth119Health IT131Geographic Trends143US144Canada153Asia161Europe170LatAm1797STATE OF DIGITAL HEALTH What you need to know about digital health in 2021$57.2BGlobal digital health funding. Record year.Digital health startups pulled in a record-breaking $57.2B in funding in 2021, up 79% from 2020 totals. Funding in all geographies hit record levels in 2021, fueled by the growing need to provide digital solutions and delivery models to patients during the pandemic.8154Mega-rounds ($100M+).In 2021, the number of mega-rounds ($100M+) to digital health startups nearly doubled to 154. Mega-rounds accounted for the majority (57%) of total funding in Q4’21 —the second-highest quarter ever after Q1’21 (61%).80% of the top 10 mega-rounds were to companies based in the US.$37.9BUS funding. The highest on record.The US digital health market continues to dominate, reaching a record $37.9B in 2021. US funding hit $10.8B in Q4’21 alone —more than the second-largest global market, Asia, recorded in all of 2021 ($10.7B).US deal count dropped to 303 in Q4 –the lowest on record for 2021. This comes as smaller financings were overtakenby mega-rounds, which accounted for 63% of total USfunding in Q4'21.3XMedian late-stage deal valuation increases.Late-stage digital health startups are closing much larger deals at much higher valuations.Themedianlate-stage deal sizeincreased 87% from 2020levels to $73M in 2021. At the same time, median late-stage dealvaluationjumped to $1.5B, nearly 3x 2020 levels.15 mos.Median time between Series C and D raises shrinks.Digital health startups are taking less time than ever to progress from mid-to late-stage financing. Moving from Series C to D, which took 22 months in 2017, has taken only 15 months (at the median) in 2021. Companies at later stages are progressing even more rapidly.STATE OF DIGITAL HEALTH What you need to know about digital health in 202185Totalunicorns. Up 49% YoY.13 new digital health unicorns –valued at $18B in aggregate –were born in Q4’21, as the total hit 85.Nearly 77% of the new unicorns are US-based and 6 out of 13 provide telehealth offerings.9574M&A deals. A new record.Consolidation in the digital health sector took off in 2021. Despite a QoQdecline, 2021 saw record M&A activity –with 574 total deals, up 44% from 2020.As dominant players emerge in this highly fragmented market, we expect to see this consolidation trend continue.$3.4BRecord global digital therapeutics funding.Digital therapeutics (DTx)startups secured a record-breaking $3.4B across 122 deals in 2021.DTxenable the treatment of chronic conditions at scale and are demonstrating improved patient outcomes in clinical trials. This is driving investor interest in the technology's future.139%Mental health funding climbs.Funding to mental health tech startups jumped 139% YoY in 2021. This was driven largely by the need to build out digital solutions targeting mental health –an area of healthcare that has gained momentum during the pandemic.68% of 2021 deals were early-stage –indicating room for further growth in the mental