Healthcare IT VC funding continued to rise in Q3 2013 with $737 million in 151 deals compared to $623M in 168 deals in Q2 2013, according to a Mercom Capital Group, llc, report on funding and mergers and acquisitions (M&A) activity in the healthcare information technology sector for the third quarter of 2013.
Year to date, the healthcare IT sector has raised a disclosed $1.85 billion. VC funding in to the sector is now on pace to double last year’s dollar total as it continues its incredible growth.
While the 2009 HITECH act helped launch the sector through its $17B allocation towards the adoption of meaningful use of healthcare IT, private investments into the sector have continued to rise with increasing EHR adoption.
Healthcare practice-focused technology companies received $489M in 59 deals with population health, EHR/EMR, practice management, and data analytics companies all receiving attention this quarter.
Top 5 VC funding: $100 million raised by Evolent Health, $70 million raised by Practice Fusion, $65 million raised by MedSynergies $43 million raised by Fitbit and $40 million raised by Oscar. The Top 5 VC funded companies accounted for 43 percent of the total funding in Q3 2013.
There were a total of 168 investors in Q3 2013. Kleiner Perkins Caufield & Byers and The Social+Capital Partnership were the most active investors and participated in four deals each. The remaining top investors participated in three deals apiece. They included FirstMark Capital, Founders Fund, HLM Venture Partners and Khosla Ventures.
Mergers and acquisitions (M&A) in Healthcare IT totaled $1.1B in 45 transactions. The most active categories for M&A transactions included revenue cycle management with nine, followed by practice management with eight, and telehealth with four transactions.
The top M&A transactions in Q3 2013 were the $644M merger of Greenway Medical Technologies and Vitera Healthcare Solutions, the $200M acquisition of Medical Management Professionals (subsidiary CBIZ) by Zotec Partners, and the $200M acquisition of Cardiocom by Medtronic.
There were a total of 412 companies and investors mentioned in this report.
For more information, download the report: http://store.mercom.mercomcapital.com/products-page/healthcare-it-reports/hit-q3-2013-funding-ma-report/