Healthcare IT VC funding reached record levels in 2013 totaling $2.2 billion in 571 deals compared to $1.2 billion in 163 deals in 2012, according to a Mercom Capital Group report on funding and mergers and acquisitions (M&A) activity in the healthcare information technology sector in 2013.
Healthcare IT companies have now received $4 billion in VC funding since 2010 with the mobile health sector leading the way.
Top VC Funded Health IT Categories
Mobile health companies received the most funding in 2013 with $564 million followed by:
- Personal health companies – $198M
- Population health – $179M
- Personal health – $166M
- Social health – $166M
- (EMR/EHR) – $166M
- Practice Management- $162M
2013 Top VC Funded Health IT Companies
The Top 5 VC funded companies in 2013 were: Evolent Health, a population health management services organization that integrates technology, tools and on-the-ground resources to support health systems in executing their population health and care transformation objectives, which raised $100 million; Practice Fusion, a web-based EMR provider, which raised $85 million in two deals; Fitbit, a fitness and health tracker company, which brought in $73 million – also in two deals; MedSynergies, a provider of revenue and performance management solutions to healthcare providers, which raised $65 million; and Proteus Digital Health, a provider of a digital health feedback system, which raised $45 million.
Top 5 Healthcare IT M&A Transactions
According to the report, M&A transactions remained flat in 2013 with 165 transactions compared to 163 transactions in 2012. There were 44 M&A transactions in Q4 2013. There were 16 companies that made multiple acquisitions in 2013. Health Information Management (HIM) companies saw the most M&A activity in 2013 with 76 transactions, followed by Revenue Cycle Management companies with 25.
The top 5 disclosed M&A transactions are shown in the graphic below:
For more information, download the report: http://store.mercom.mercomcapital.com/products-page/healthcare-it-reports/hit-2013-annual-and-q4-funding-report/
