In Record-Setting Quarter, These 5 Telehealth Startups Raked in $1.6B in Funding

Despite investor fears of a telehealth slowdown, the market banked a record-setting $5 billion in 163 funding deals in the second quarter of 2021.

Global telehealth investment rose for the fourth consecutive quarter, growing 17% quarter over quarter and 169% year over year, according to a new report from market intelligence company CB Insights.

The nascent telehealth space is beginning to show signs of maturity, as, so far in 2021, early-stage deals are tracking at a historical low while late-stage deal share is at a high, the report said.

In the second quarter, the top five deals alone were worth $1.6 billion, representing 30% of quarterly funding.  

At the top of the list, Noom, an app that helps people lose weight by focusing on behavior change, bulked up with $540 million in a series F funding round led by new investor Silver Lake. Other new investors participated in the round including Oak HC/FT, Temasek and Novo Holdings. Existing investors Sequoia Capital, RRE and Samsung Ventures also participated.

The digital health company saw rapid growth in 2020 as people looked to shed pandemic-fueled pounds, and it's now looking to expand beyond weight loss to areas such as stress and anxiety, diabetes, hypertension and sleep.