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 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%). Another subsector that received considerable funding in 2016 was Clinical Workflow: $55 million (30%). This subsector includes companies that enable hospitals, clinics, labs, and other healthcare stakeholders to work more efficiently. Also the Wearables and Sensors subsector 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 subsector. 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 subsector has skyrocketed, becoming the most prominent subsector, with 174 companies (45% of the sector). 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. 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 subsectors 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, subsectors are becoming more interconnected, centering around individuals and empowering them.
Start-Up Nation Central chief marketing officer Guy Hilton said, "With one of the most advanced healthcare systems in the world, coupled with extensive experience in the areas of information, communications and cyber, Israel has become in recent years a promising center for technologies that analyze and process medical information. 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. Most of the investments in Israel in the past two years have focused on these technologies, while the global industries have focused on other areas. Furthermore, since many of the solutions developed in Israel are based on software and target the end-user, they can be widely implemented. Taking advantage of these trends can position Israel as a meaningful player in the global healthcare industry."
MIXiii BIOMED co-chairperson and Medstrada founder and CEO Ruti Alon said, "The positive trend of growth in the digital health industry in Israel, as evident from the report, is indeed encouraging. In order to fully realize the potential of the technologies in this field, there is a need to understand global healthcare systems and markets. To this end, the Biomed conference offers a perfect platform for meetings and networking between researchers, physicians, senior executives in hospitals and life science companies, academia and industry from Israel and around the world. Among the co-organizers of the conference are the Cleveland Clinic and the Mayo Clinic, both among the leading medical centers in the US and worldwide. In addition, we are expecting delegation from East Asia and Europe. One of the main subjects this year is aging and age related diseases. Today, healthcare systems focus especially on the area of trauma and sicknesses relating to the elderly. Most of the companies presenting at the conference in general, and specifically in the digital health track, will try to address the needs and solves problems relating to the treatment of this group."
MIXiii BIOMED co-chairperson and managing general partner Tel Aviv Venture Partners Dr. Benny Zeevi said, "Digital health will dramatically change the way in which we consume and receive healthcare services, leading to better medical results and substantial savings in healthcare expenses. Israel as a leader in information, communication and cyber technologies, with more than 25 years of experience in implementing information systems and analysis in its public healthcare system, an openness and willingness on behalf of its hospitals and HMOs to implement these technologies, and close to 400 digital health companies, has the potential to be a world leader in this industry. The companies in this sector have to prove that they bring true value to healthcare systems by preforming controlled clinical trials, just like any other medical product."
Published by Globes [online], Israel business news - www.globes-online.com - on March 30, 2017
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