$183 million was invested in the sector in 2016, up 30% from $144 million in 2015.The Israeli digital health sector grew significantly in 2016, both in terms of funding and in terms of the number of companies, according to a report issued by Start-Up National Central ahead of the MIXiii BIOMED 2017 conference and exhibition in Israel, which will take place in Tel Aviv, May 23-25.
Investments in Israeli digital health rose to $183 million in 2016, up almost 30% from $144 million in 2015. Personal Health Tools and Health Analytics accounted for over 70% of deal volume in 2015 and 2016. The Health Analytics sub sector, 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%). Another sub sector that received considerable funding in 2016 was Clinical Workflow: $55 million (30%). This sub sector includes companies that enable hospitals, clinics, labs, and other healthcare stakeholders to work more efficiently. Also the Wearables and Sensors sub-sector received considerable funding in 2016: $46 million (25%).
The digital health sector worldwide is rapidly transforming passive patients into active healthcare consumers and the sector in Israel is participating in this global trend of patient empowerment, with Personal Health Tools becoming the largest sub sector 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.
According to the report, the number of digital health companies in Israel has risen substantially in recent years, reaching 385 companies. The Personal Health Tools sub sector has skyrocketed, becoming the most prominent sub sector, with 174 companies (45% of the sector). This sub sector includes companies that provide end-users with software-based tools to track, manage, and even treat their own health conditions. The second largest sub sector is Health Analytics with 85 companies. These companies play an important role in the ability to predict, prevent, diagnose and treat medical conditions.
As the Israeli digital health sector concentrates on patient empowerment, the borders between sub sectors begin to blur, converging under Personal Health Tools. Wearables, sensors, big-data analytics, and telemedicine platforms integrate to form powerful B2C and B2B2C healthcare products. The data collected from wearables and sensors is being leveraged more and more by the rapidly-growing market of Health Analytics and Personal Health Tools software. The user is not only tracked and monitored passively, but receives real-time feedback, turning him/her into an active participant in the process. Overall, sub sectors are becoming more interconnected, centering around individuals and empowering them.