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$183 million invested in Israeli digital health companies during 2016, Report

The report has released towards MIXiii BIOMED 2017, Israel’s international life science conference and exhibition, May 23-25, 2017, in Tel Aviv.


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  • $183 million invested in digital health companies in Israel during 2016, an increase of nearly 30% compared to 2015
  • A total of approximately 385 companies are active in the field of digital health in Israel

According to a report contacted by Start-Up Nation Central, the Israeli digital health sector grew significantly in 2016, both in terms of funding and in terms of the number of companies.

The detailed report describes the current status of the digital health industry in Israel, including its subsectors (Health Analytics, Telemedicine, Clinical Workflow, Wearables & Sensors and Personal Health Tools), the number of companies and investments in each subsector, the active incubators and accelerator in the field and much more.

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The report has released towards MIXiii BIOMED 2017, Israel’s international life science conference and exhibition, May 23-25, 2017, in Tel Aviv.

The sum of investments in 2016 was $183 million, an increase of almost 30% compared to 2015 ($144 million). 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% of total investments).

Another subsector that received considerable funding in 2016 is Clinical Workflow: $55 million (30% of total investments). This subsector includes companies that enable hospitals, clinics, labs, and other healthcare stakeholders to work more efficiently. Also the Wearables & Sensors subsector received considerable funding in 2016: $46 million (25% of total investments).


Healthcare Apps


According to the report, the number of digital health companies in Israel has risen substantially in recent years, reaching a total of approximately 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. In sum, the various subsectors are becoming more interconnected, centering around individuals and empowering them.

Guy Hilton, Chief Marketing Officer, Start-Up Nation Central, stated, “With one of the most advanced healthcare systems in the world, 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.”

Ruti Alon, MIXiii BIOMED Co-Chairperson and CEO and Founder, Medstrada, said, “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.”




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