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Wednesday, November 4, 2015

Should Venture Capital Be Concerned With Digital Health Investments?

Large Series A financings are a worrying digital health investment trend


(from MedCity News)

The recent large Series A financings in digital health caught my attention. Clover grabbed $100 million in equity and debt financing, Color Genomics raised $15 million, Cure Forward raised $15 million, Honor raised $20 million and Lyra Health raised a whopping $35 million.

One could argue that a data-driven insurance company like Clover will absolutely need every penny of the $100 million, but handing $35 million to a brand new company targeting behavioral health solutions, like Lyra, doesn’t make a lot of sense to me.