Q1 2013 was another record quarter in venture capital funding for healthcare IT startups with almost half a billion ($493 million) raised, according to Mercom Capital Group. The recent report released by the global consulting firm found that there were 104 funding deals this quarter compared to 51 in the previous quarter.
Most of the funding deals were for consumer-focused technologies (59 deals) comprising of mobile health, telehealth, social health, personal health, and scheduling, rating & shopping compared to 45 deals for health practice-focused technologies.
Raj Prabhu, the CEO of Mercom Capital Group told Venture Beat,
“The enormous market opportunity in consumer-focused health has appeared to pique the interest of investors and is likely to continue to grow as witnessed by the surge in VC activity.”
The top 5 VC funded healthcare IT startups in Q1 2013 are:
Norwest Venture Partners, Sequoia Capital, Sorenson Capital, Kaiser Permanente Ventures, CHV Capital
xG Health Solutions
Oak Investment Partners
One Medical Group
Google Ventures, Benchmark Capital, DAG Ventures, Oak Investment Partners, Maverick Capital
Source: Mercom Capital Group, llc
Other key findings of the report include:
- Both Mobile Health and Personal Health companies doubled the amount of VC funding and deal count compared to the previous quarter.
- Health Information Management (HIM) companies received the most amount of VC funding with $219 million in 44 deals. Mobile Health came in second with $127 million in 28 deals.
- Within HIM, Practice Management companies received the most funding with $56 million in 11 deals.
- There were 46 HIT M&A transactions, same as the previous quarter.
- HIM companies attracted the most acquirers with 22 transactions.
- Within HIM, EMR and EHR companies had the most M&A transactions with six followed by Practice Management companies with five, Business & Clinical Intelligence companies with three, and Health Information Exchange and Clinical Decision Support companies with two deals each.
For more information, visit Mercom Capital Group’s Quarterly Healthcare IT Funding and M&A Reports