Clinical decision-support software companies raised more than $1 billion during the first half of 2021—double the amount raised during the same period last year.
Investors poured $1.1 billion into companies that sell clinical decision-support tools—products that analyze data and provide recommendations on patient care—during the first six months of 2021, up from $545 million during the same period in 2020, according to a second-quarter report from market research firm Mercom Capital Group.
Clinical decision-support software companies have raised nearly $7 billion since Mercom began tracking digital health funding in 2010.
Businesses that sell clinical decision-support tools are part of a broader category of digital health tools designed to assist healthcare providers and practices with managing health data. As a whole, companies in that health information management subsector raised $3.7 billion during the first half of 2021, up from $2 billion in the same period last year.
Such software has been a particular area of focus as the Food and Drug Administration refines its strategy for regulating digital health technologies. Some clinical decision-support products are reviewed by the agency, while others aren’t—depending on whether they’re deemed low or high risk to patients.