Israel’s digital health sector grew significantly in 2016, both in terms of funding and in terms of the number of companies, with investments jumping almost 30 percent to $183 million in 2016 from 2015, a report released by the nonprofit Start-Up Nation Central organization shows.
Personal health tools and health analytics accounted for over 70% of deal volume in 2015 and 2016, the report said. The health analytics subsector, relating to companies that collect and analyze data to solve medical problems for businesses and consumers, received the most funding in the past two years: $84 million in 2015, 59% of total investments, and $58 million in 2016, 32% of total investments.
Also receiving considerable funding in 2016 is Clinical Workflow, a subsector that includes companies that enable hospitals, clinics, labs, and other healthcare stakeholders to work more efficiently. This sector received investments of $55 million, or 30% of total investments. The Wearables & Sensors subsector also received $46 million, or 25% of total investments, in 2016, the report said.
Start-Up Nation Central released the report highlighting Israel’s digital health industry ahead of MIXiii BIOMED 2017, an international life science conference and exhibition to be held in May 23-25 in Tel Aviv.
The digital health sector worldwide is helping transform patients who have been traditionally passive into active healthcare consumers.
“Israel’s unique capabilities in information, communication, mobile, and cyber technologies, together with more than 25 years of expertise in implementing health IT, electronic medical records, and business analytics, offers Israel the opportunity to become a truly influential player in the global digital health arena,” the report said.
Some 385 companies now operate in the digital health field in Israel, with 174 of them , or 45% of the sector, in the Personal Health Tools field.This subsector includes companies that provide end-users with software-based tools to track, manage, and even treat their own health conditions. The second largest subsector is Health Analytics, with 85 companies, which help clinicians predict, prevent, diagnose and treat medical conditions.
“Israel has become in recent years a promising center for technologies that analyze and process medical information,” said Guy Hilton, chief marketing officer at Start-Up Nation Central, in a statement. “These technologies enable institutions and health consumers to effectively and creatively address heavy challenges, and as such, play a significant role in shaping digital health.”