• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • Skip to footer

  • Opinion
  • Health IT
    • Behavioral Health
    • Care Coordination
    • EMR/EHR
    • Interoperability
    • Patient Engagement
    • Population Health Management
    • Revenue Cycle Management
    • Social Determinants of Health
  • Digital Health
    • AI
    • Blockchain
    • Precision Medicine
    • Telehealth
    • Wearables
  • Life Sciences
  • Investments
  • M&A
  • Value-based Care
    • Accountable Care (ACOs)
    • Medicare Advantage

Health IT VC Funding Tops $1.4B in Q1 2016: 10 Things to Know

by Fred Pennic 04/14/2016 Leave a Comment

  • LinkedIn
  • Twitter
  • Facebook
  • Email
  • Print

Health IT VC Funding Tops $1.4B in Q1 2016: 10 Things to Know

Health IT VC funding increased 27 percent quarter over quarter (QoQ), coming in at $1.4 billion in 146 deals compared to $1.1 billion in 145 deals in Q4 2015, according to a new Mercom Capital Group report. The report highlights 615 companies funding and mergers and acquisitions (M&A) activity for the Healthcare Information Technology (IT) / Digital Health sector for the first quarter of 2016. 

Here are ten key things to know: 

1. Healthcare practice-centric companies received 42 percent of the funding in Q1 2016, raising $569 million in 49 deals compared to $360 million in 44 deals in Q4 2015. Consumer-centric companies received 58 percent of the funding this quarter, bringing in $796 million in 97 deals compared to $711 million in 101 deals in Q4 2015.

2. Top funded areas in Q1 were – Wearables/Sensors with $260 million, Data Analytics companies with $197 million, Telemedicine with $171 million, mHealth apps with $120 million, and Consumer Health Information/Education with $100 million.

3. There were 53 early-stage deals at or below $2 million, including 14 Accelerator and Incubator deals.

4. The top VC deals this quarter included the $175 million raised by Flatiron Health, $165 million raised by Jawbone, $95 million raised by Healthline, $70 million raised by Health Catalyst, $46 million raised by inviCRO, and $40 million raised by higi.

5. A total of 318 investors, including three Accelerators/Incubators, participated in Healthcare IT deals this quarter. A total of 27 investors participated in multiple rounds this quarter. Chicago Ventures, Jazz Venture Partners, Jump Capital, Lux Capital, Sequoia Capital, Social Capital, Tribeca Venture Partners and UPMC were involved in the greatest number of funding deals with three each.

6. There were two IPOs this quarter; Oneview Healthcare and Senseonics together accounted for $91.5 million.

7. There were 58 M&A transactions (nine disclosed) in the Health IT sector this quarter compared to 53 transactions (13 disclosed) in Q4 2015. This quarter had the highest recorded number of M&A transactions in a single quarter.

8. mHealth apps companies were involved in the most M&A transactions with nine, followed by Practice Management companies and Personal Health companies with seven each, Data Analytics companies with five, EHR companies with four and Telemedicine companies with three.

9. The Top 5 disclosed M&A transactions were the $2.75 billion acquisition of MedAssets by Pamplona Capital Management, the $2.6 billion acquisition of Truven Health Analytics by IBM, the $950 million acquisition of Netsmart Technologies by Allscripts, the $140 million acquisition of CenTrak by Halma, and the $119 million acquisition of MedicalDirector by Affinity Equity Partners.

10. Health IT VC funding deals were spread across 16 countries in Q1.

  • LinkedIn
  • Twitter
  • Facebook
  • Email
  • Print

Tagged With: Health IT VC Funding

Tap Native

Get in-depth healthcare technology analysis and commentary delivered straight to your email weekly

Reader Interactions

Primary Sidebar

Subscribe to HIT Consultant

Latest insightful articles delivered straight to your inbox weekly.

Submit a Tip or Pitch

Featured Interview

Reach7 Diabetes Studios Founder Chun Yong on Reimagining Chronic Care with a Concierge Medical Model

Most-Read

HHS Finalizes HTI-4 Rule: Prior Authorization & E-Prescribing Interoperability

HHS Finalizes HTI-4 Rule: Prior Authorization & E-Prescribing Interoperability

Meaningful Use Penalties_Meaningful Use_Partial Code Free_Senators Urge CMS to Establish Clear Metrics for ICD-10 Testing

CMS Finalizes TEAM Model: A New Era of Value-Based Surgical Care

White House Event Unveils CMS Health Tech Ecosystem Initiative

White House Event Unveils CMS Health Tech Ecosystem Initiative

Digital Health Faces Q2'25 Pullback: Funding Falls to 5-Year Low, But AI Dominates and $1B+ IPOs Emerge

Healthcare Investment Shifts in 1H 2025: AI Remains a Bright Spot Amidst Fundraising Decline

Digital Health Faces Q2'25 Pullback: Funding Falls to 5-Year Low

Digital Health Faces Q2’25 Pullback: Funding Falls to 5-Year Low

Beyond the Hype: Building AI Systems in Healthcare Where Hallucinations Are Not an Option

Beyond the Hype: Building AI Systems in Healthcare Where Hallucinations Are Not an Option

Health IT Sector Navigates Policy Turbulence with Resilient M&A

Health IT’s New Chapter: IPOs Return, Resilient M&A, Valuations Rise in 1H 2025

PwC Report: US Medical Cost Trend to Remain Elevated at 8.5% in 2026

PwC Report: US Medical Cost Trend to Remain Elevated at 8.5% in 2026

Philips Launches ECG AI Marketplace, Partnering with Anumana to Enhance Cardiac Care with AI-Powered Diagnostics

Philips Launches ECG AI Marketplace, Partnering with Anumana to Enhance Cardiac Care with AI-Powered Diagnostics

WeightWatchers Emerges from Bankruptcy, Launches New Menopause Program

WeightWatchers Emerges from Bankruptcy, Launches New Menopause Program

Secondary Sidebar

Footer

Company

  • About Us
  • Advertise with Us
  • Reprints and Permissions
  • Submit An Op-Ed
  • Contact
  • Subscribe

Editorial Coverage

  • Opinion
  • Health IT
    • Care Coordination
    • EMR/EHR
    • Interoperability
    • Population Health Management
    • Revenue Cycle Management
  • Digital Health
    • Artificial Intelligence
    • Blockchain Tech
    • Precision Medicine
    • Telehealth
    • Wearables
  • Startups
  • Value-Based Care
    • Accountable Care
    • Medicare Advantage

Connect

Subscribe to HIT Consultant Media

Latest insightful articles delivered straight to your inbox weekly

Copyright © 2025. HIT Consultant Media. All Rights Reserved. Privacy Policy |