Health IT vendors are tearing it up. It’s the latest growth area, according to a new report by Mercom Capital. Mercom says the booming industry has logged its first $1 billion quarter in venture capital (VC) funding and is “smashing totals from the entirety of 2013.”
According to EHRIntelligence “population health management, clinical analytics, mHealth, and practice management companies were among the most popular with investors, who see ample opportunity for health IT products to supplement EHRs, improve patient outcomes, and address operational gaps in struggling healthcare organizations.”
“It was a quarter of several milestones,” says Raj Prabhu, CEO and Co-Founder of Mercom Capital Group. “It was the first billion dollar fundraising quarter for the healthcare IT sector which has now raised almost $7 billion in venture funding since 2010. Merger and acquisition (M&A) deals were also at their highest levels this quarter, while mobile health companies continued to outraise other technologies.”
What’s up, Doc?
Looks like more possibilities than there are pills at the pharmacy.
Consumer-centric products like mHealth apps and wearable mobile health device manufacturers were very popular, sharing $678 million in 100 deals during Q2. More than 17 wearable device companies raised $226 million in funding for the quarter, while $129 million went to 23 companies who are developing health-related apps.
Largest deals of the quarter? For starters, Google Ventures made headlines in May when it bought in significantly to the $130 million raised by Flatiron Health, a cloud-based data analytics provider.
“Other significant deals include $125 million raised by Alignment Healthcare, a population health management vendor, and $120 million for Proteus Digital Health, a pioneer in the wearable sensor market,” according to the same report.