Health IT Investments Reached $858M in Q1 2014, Report Finds

April 16, 2014 in News

Health IT companies have received $858 million in venture capital funding across 163 deals in the first quarter of 2014, up 154% from the last quarter of 2013, according to a new Mercom Capital Group report, Healthcare IT News reports.

Details of Deals

The report showed that Q1 investments in clinically-focused IT firms reached $460 million across 60 deals, including:

  • Eight practice management deals worth $124 million;
  • Seven business intelligence and analytics deals worth $43 million (Miliard, Healthcare IT News, 4/15); and
  • Two health information exchange deals worth $78 million.

Meanwhile, consumer-focused companies raised $398 million over 103 deals, including:

  • 61 mobile health deals worth $198 million;
  • 14 telehealth deals worth $79 million; and
  • Six deals in scheduling, rating and shopping companies worth $66 million (Hall, FierceHealthIT, 4/15).

The report also noted that there were 53 health IT mergers and acquisitions in Q1 of this year, compared with just 44 transactions in the fourth quarter of 2013. Specifically, the report found:

  • Health information management companies experienced 18 mergers and acquisition transactions;
  • Service providers experienced 13 mergers and acquisition transactions; and
  • Mobile health firms experienced eight mergers and acquisition transactions.

According to Healthcare IT News, the largest transaction was Starr Investment Holdings’ $4.4 billion acquisition of Multiplan, a claims processing and cost management firm.

Overall, the report found that total corporate funding in the health IT industry — including accelerator/incubator, debt, public market financing and venture capital — in Q1 of this year reached $1.2 billion (Healthcare IT News, 4/15).

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