Investment into the digital health market topped $4.5 billion in 2015, and we are seeing an acceleration of investment in 2016. According to StartUp Health, investment into the digital health market for the first half of 2016 reached $3.9 billion. Early-stage innovation made up more than 65% of deals, with the majority of investment capital it going into Series A rounds. As of July, patient and consumer products, which include wearables, are leading with over $960 million invested in this sector, followed by wellness at $854 million, personalized health at $524 million, big data/analytics at $406 million and workflow at $328 million. Digital health research and population health are at the bottom of the start-up health company's list, with $65 million and $55 million, respectively.

It's no surprise that we are seeing digital health M&A activity coming from tech giants such as Google, Apple and IBM. Pharma corporations and health insurance companies are also investing; and so are major brands such as Under Armour and ASICS. Much like any other industry innovating toward digital transformation, the new global ecosystem in digital health is being built out by strategic relationships involving a broad cross-section of technology companies and digital start-ups, along with pharma, health insurance, and consumer brands. Without a doubt, the big business play is data. The big win for consumers is convenience and access, and improvements in healthcare and wellness.

Manatt Digital is excited to provide services within Digital Health. We work with clients throughout the ecosystem, bringing to market new and exciting advances in digital health. Manatt's strategic thinking spans across health, data and privacy, brands/advertising and launching and accelerating start-ups, as well as M&A. We hope this edition of our newsletter provides some interesting insights related to the current digital health market. We look forward to discussing your opportunities in digital health and to introduce you to our team of digital health advisors.