Healthcare IT Rocks First Quarter with $1.4B in VC Funding

Spotlight on Limelight: Mobile-Focused Firm Attracting More InvestmentsOn Thursday, MHW was privy to a new report indicating the impressive growth of VC funding in the healthcare IT space during the first quarter of this year.

Mercom Capital Group is out with its latest report on funding and mergers and acquisitions activity for the Healthcare Information Technology (IT) / Digital Health sector for Q1 2016.

The report covers deals of all sizes globally.

VC funding, including private equity and corporate venture capital, increased 27 percent quarter over quarter, coming in at $1.4B (billion) in 146 deals compared to $1.1B in 145 deals in Q4 2015; it was also up 74 percent year over year. Corporate funding including VC, Debt and Public Market Financing for Q1 2016 was $1.5B.

“The Health IT sector is off to an impressive start this year with significant funding activity in the first quarter led by wearables, data analytics and telemedicine. Data analytics and telemedicine companies reached a significant milestone, each crossing $1B in funding raised to date. Health IT public companies, meanwhile, continued to underperform,” says Raj Prabhu, CEO and Co-Founder of Mercom Capital Group.

Healthcare practice-centric companies raised $569M (million) in 49 deals compared to $360M in 44 deals in Q4 2015. Consumer-centric companies raised $796M in 97 deals compared to $711M in 101 deals in Q4 2015.

Top Funded Health IT Technologies in Q1 2016
Wearables: $260M
Data Analytics: $197M
Telemedicine: $171M
mHealth Apps: $120M
Consumer Health Information/Education: $100M

There were 53 deals at or below $2M, including 14 Accelerator and Incubator deals, according to the report summary shared. The top VC deals included the $175M raised by Flatiron Health, $165M raised by Jawbone, $95M raised by Healthline, $70M raised by Health Catalyst and the $46M raised by inviCRO, and $40M raised by higi.

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