The global digital health and wellness company – Kilo Health – has released a Q3 market assessment report that suggests COVID is disrupting the traditional health tech markets and redistributing investor capital to outlier areas.
In a surprising twist, the Kilo Health analysis found Brentwood, TN; Boulder, CO; Irvine, CA; Austin and Brooklyn all raked in more money in September than Boston, which is historically a strong investor market for life science and digital health.
The Kilo Health market report also showed Brooklyn leapfrogging Manhattan as the second largest global investor market, bringing in $400 million during that same time frame. San Francisco remained at the top of the global list bringing in roughly $500 million from investors in September.
The CEO of Kilo Health, Tadas Burgaila, says his company conducted the analysis to get more insight on where the money is flowing and which specific industries within life science and healthcare are growing the fastest.
“Silicon Valley and Silicon Alley are synonymous with tech money but our research found that’s changing,” said Burgaila. “Austin has attracted many tech companies, including Tesla, but in September, the city brought in $400 million from investors. Right behind it was Irvine, California; Brentwood, Tennessee; and Boulder, Colorado – cities you don’t normally associate with VCs and private equity.”
As a whole, the health and wellness industry brought in $3.9 billion dollars in Q3, which was 52 percent higher than Q2. Analysts with Kilo Health gathered the data from public sources, including Crunchbase, Semrush, SimilarWeb as well as from industry reports from the Venture Capital community.
“This investor data reinforces how COVID is disrupting the way tech and healthcare companies will do business moving forward,” said Burgaila. “The data shows startups are launching new companies in new cities, and investors seem to be okay with it. And I don’t see this trajectory changing. As healthcare and wellness companies grow in their communities, they will continue to disrupt the workforce across the US.”
Healthcare and Wellness Industries Growing the Fastest
The fitness industry continues to dominate the airwaves with ads targeting consumers who want to get fit at home, but in another surprising twist, Kilo Health found that the industry is not growing like it did at the start of the pandemic.
Fitness companies like Peloton, Tonal and Mirror attracted investor, IPO and VC money as the shut down got underway, and consumers exercised at home. But as a group, the fitness industry raised only $17 million in September.
In comparison, mental health raised $250 million from investors in September. Meru Health, Eleos, and Iona Mind led the investor pack, raising $44 million as a group.
The healthcare system as a group attracted the most investor capital in September with $697 million flowing to digital products, $159 million to R&D, and $82 million going to physical products used in the healthcare system.
Self care raised $627 million or nearly 30 percent of the entire healthcare market in September. Kilo Health found the money flowed to digital products, physical products, as well as B2B and B2C companies.
Burgaila said COVID is redistributing the way investors and consumers see healthcare and wellness, so it’s not surprising that the money flow is changing too.
“Mental health and self-care have been overlooked in the past, but the pandemic has brought these industries into focus,” said Burgaila. “We are all realizing we need to take care of our mental and physical self in this pandemic. And it looks like investors are getting the message.”
Readers can download the Kilo Health market report by clicking here.
Top 10 Cities with the Largest Investor Infusion in September
San Francisco $.5B
New York $.32B
Irvine, Calif $.1B
Brentwood, TN $.09B
Boulder, CO $.07B
Boston, MA $.07B
Westminster, CA $ .05B
Haifa, Israel $ .04B
Top 8 Healthcare and Wellness Industries
Healthcare System $938 Million
Health and Selfcare $627 M
Mental Health $250 M
Health Diseases $202 M
Women’s Health $52M
ABOUT Kilo Health
Kilo Health is a leading global digital health and wellness company that helps entrepreneurs, co-founders and startups accelerate and scale their talents and visions across healthcare. Kilo Health was founded to design the most engaging and effective digital lifestyle interventions that lead to a healthier life by preventing, managing, or treating various health conditions.
Kilo Health is one of the leading digital health and wellness companies globally, not only attracting talents to join its fast-growing team but also co-founding and accelerating start-ups in a rapidly growing digital health industry.
With 4+ million paying users worldwide (the majority in the United States), strong technology, and a digital marketing platform, Kilo Health provides unparalleled opportunities for entrepreneurial talents and visionaries to build digital health products of the future.
Kilo Health was founded to design the most engaging and effective digital lifestyle interventions that lead to a healthier life by preventing, managing, or treating various health conditions.
Continuously seeking new opportunities, co-founding, and accelerating prospective next-gen products, Kilo Health has grown from 7 to 500 bright talents in three years and aims to become the most loved digital health and wellness product suite globally.