Tech giants like Google’s parent company Alphabet and Microsoft have taken their time figuring out how to approach the massive $3.5 trillion US healthcare industry.
But the big tech players haven’t been shy about investing in companies looking to disrupt healthcare. Their investments hint at how the tech giants could ultimately succeed in healthcare.
In October, CB Insights pulled together a report analyzing the investments tech companies had made in digital health startups looking at the last five years. In particular, Alphabet, Microsoft, and Chinese tech giant Tencent accounted for about 70% of the deals, the report found.
The report highlights that most of the deals have been in data management and analytics, with 40 deals in the space. That finding isn’t surprising for He Wang, a healthcare analyst at CB Insights.
“A common thread across all ten companies is data. Every tech company is leveraging some sort of data in all verticals they’re going after, and that’s no different in healthcare,” Wang told Business Insider. “They’re playing to their strengths and that’s reflected in their investments.”
Here are the top 5 companies with the most investments in digital health and where they’re placing their bets, from fewest investments to most, as determined by the CB Insights report.