Affordable Care Act Leads to Boom in Funding for Health Software
May 15, 2014 in News
The Affordable Care Act is driving significant growth in health care software startups, the Wall Street Journal‘s “Venture Capital Dispatch” reports.
In the first quarter of 2013, health care software startups raised $237.5 million, the most amount of funding the sector has raised in a single quarter since 2000, according to Dow Jones VentureSource.
This past quarter, 21 health care software developers received funding, which tied Q1 2013 for the most deals since the dot-com boom, according to “Venture Capital Dispatch.”
- Health Catalyst, a data warehousing and analytics provider, received a $41 million investment;
- Voalte, a developer of secure communications systems for health providers, raised $36 million; and
- Kareo, a developer of software for smaller medical offices, received a $29.5 million investment (Zinsli, “Venture Capital Dispatch,” Wall Street Journal, 5/12).