Digital health companies fueling NYC economy
New York City has emerged as a major hub for healthcare technology companies because they can take advantage of the area’s renowned academic medical centers as potential investors and testing grounds, according to a new report from the not-forprofit Center for an Urban Future.
The city is second only to the San Francisco Bay Area in terms of venture capital investment in digital health and is home to companies with billion-dollar valuations, such as Zocdoc, Flatiron and Oscar.
New York City-based digital health companies received $908 million in venture funding last year, a nearly tenfold increase from 2010, when 15 companies raised $93 million, according to the center’s report.
There are almost 100 New York companies in the sector, with at least eight of them employing 50 or more workers. Given the industry’s growth potential, digital health should be part of the mayor’s plan to create 100,000 jobs that pay more than $50,000 a year during the next decade, said Jonathan Bowles, executive director of the Center for an Urban Future. Bowles recommends that the city help create a more centralized digital health ecosystem by forming campuses with affordable office space and hosting networking events.