Investments in healthtech startups are skyrocketing amid COVID-19

The healthtech industry across the world is evolving at a rapid pace. It is revolutionizing the healthcare industry, enabling easier and seamless health access to people. Healthtech has given the rise of various care methods to public health such as telemedicine, robotic surgery, and other digital healthcare processes. Thanks to its broader availability of access and growing healthcare demand, healthtech startups have attracted remarkable VC investments throughout the year 2020. According to the report, global digital health investment accounted for US$$4.2 billion in Q2 2020. And in the first half of the year, total health innovation funding hit US$9.1 billion, which is up around 19 percent against US$7.7 billion invested during the same period in 2019.

Here’s a look at the top 10 healthtech funding and investments made in 2020.

Grail

Grail, a developer of a pan-cancer screening test designed to detect cancers at an early stage, in May received US$390 million in a Series D funding round. The round will support the continued development and commercialization of GRAIL’s multi-cancer early detection blood test. Since early 2016, GRAIL has raised over US$1.9 billion in four rounds of equity financing to pursue reducing cancer mortality worldwide through multi-cancer early detection.

Alto Pharmacy

San Francisco, CA-based digital pharmacy for prescription drugs Alto Pharmacy in January bagged US$250 million in a Series D funding round. Led by SoftBank Vision Fund 2, with participation from existing investors, GreenOaks Capital, Jackson Square Ventures, Olive Tree Capital and Zola Global, the round will enable Alto Pharmacy to stimulate geographic expansion across the United States and product development.

Amwell

Amwell is a Boston, Massachusetts, U.S.-based telehealth platform that provides its patients with more affordable, higher quality health care. In May, the company raised US$194 million in Series C financing to expand its investment in technology and services that make it easy, convenient and effective for doctors and patients to connect securely at scale. The round was led by many early investors and strategic partners, including Allianz X and Takeda.

Karius

Karius, a life sciences company focused on generating genomic insights for infectious diseases, in February secured US$165 million in a Series B funding round. The round was led by SoftBank Vision Fund 21, with additional participation from General Catalyst, HBM Healthcare Investments, and existing investors Khosla Ventures and LightSpeed Venture Partners. Karius pioneered the discovery and application of microbial cell-free DNA, enabling non-invasive detection of pathogens throughout the body with its Karius® Test.

KRY

Sweden-based telemedicine company KRY in January raised US$155 million in a Series C financing to accelerate its ambitious growth plans in Europe and transform the way millions of patients access health services in a digital age. Founded in 2015, KRY allows users to consult with a qualified health professional in minutes, via their smartphone or tablet.

Oscar Health

Health insurtech company Oscar Health in December raised US$140 million in a venture round from Tiger Global Management. The funding comes as the company continues to experience significant growth, seeing a 74 percent increase in direct policy premiums over the past three years. The round was further seen participation from Dragoneer, Baillie Gifford, Coatue, Founders Fund, Khosla, Lakestar and Reinvent.

Doctor On Demand

An on-demand healthcare services provider Doctor On Demand in July raised US$75 million in a Series D round. Led by General Atlantic and other backers, this new funding gives the company's total funding of approximately US$240 million. With solutions for employers, health plans, retail clinics, and health systems, Doctor On Demand is redefining the industry with top-rated customer experience, highest clinical standards, and implementation and customer success directors, as well as 24/7 customer support.

Virta Health

Virta Health, a San Francisco, CA-based company that delivers reverse type 2 diabetes treatment, in December snagged US$65 million in a Series D funding round. Led by Sequoia Capital Global Equities with participation from Caffeinated Capital, the financing will support the growing demand for Virta’s reversal treatments for type 2 diabetes and other chronic metabolic conditions.

MDLIVE

MDLIVE, a telehealth provider of online and on-demand healthcare delivery services and software, in September bagged US$50 million in a private equity round from Sixth Street Growth. MDLIVE provides a telehealth platform staffed by a network of certified clinicians capable of delivering virtual urgent care, dermatology, therapy and psychiatry services. With this fresh capital, the company will accelerate the expansion of its Virtual Primary Care platform and will launch new supporting products and services for its members.

Eden Health

Eden Health, a primary care and insurance navigation company, in August closed US$25 million in a Series B funding round. The round was led by Flare Capital Partners with participation from Stone Point Capita; and existing investors Greycroft, PJC, Max Ventures and Aspect Ventures. Eden Health is known for its innovative direct-to-employer healthcare delivery model, bringing in-person and virtual healthcare together to deliver an exceptional patient experience to the employees of mid-market companies.