Venture Capital Funding For Digital Health And Health IT Drops In The First Quarter Of 2015

Venture Capital Funding For Digital Health And Health IT Drops In The First Quarter Of 2015Digital Health and Health IT are two industries that have raked in an impressive amount of venture capital in the past several years. Categories within these industries are either new, or have drastically changed in the last decade.

Since both industries are increasingly in demand, Digital Health and Health IT have been generating billions of dollars in capital over the last several years, says a new report from Mercom Capital Group. However, VC funding for both Q4 of 2014, and Q1 of 2015 has dropped significantly. In Q4, funding dropped by almost 35 percent. In Q1 of 2015, VC fundraising came in at $1.8 billion.

The only area in which VC funding increased was the mobile health sector. In 2014 there were a total of 21 mobile health transactions, where 2015 has already seen 10 mobile health transactions as of Q1.

“Funding fell across the board with the exception of Mobile Health, which was the bright spot this quarter. There was also significant M&A activity in the first quarter for mHealth companies. We have already seen 10 M&A transactions in Q1 compared to 21 in all of last year, which bodes well for exits in Mobile Health,” says Raj Prabhu, CEO and Co-Founder of Mercom Capital Group.

To learn more, check out the full report here.

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