Venture capitalists continue pouring money into digital health

Wall Street may or may not be going through its long-awaited correction these days, but regardless, it still seems to have a hearty appetite for digital health initial public offerings. That appetite is provoking venture capitalists to fund ever-more startups.

Through June 2014, $2.3 billion has been sunk into digital health offerings compared with $2 billion in all of 2013, reports digital healthcare accelerator Rock Health.

“We think there's going to be four to five IPOs each year for the next five years,” said Steve Kraus, the lead healthcare partner at Bessemer Venture Partners, Cambridge (MA). That's based on the interest that healthcare IT startups have gotten from private sources such as angel (small) and venture (big) capital investors.