Health IT Funding Doubled in Q2 2014, Reaching $1.8B, Report Finds

July 17, 2014 in News

Venture capital funding for health IT companies more than doubled between the first and second quarters of 2014, reaching $1.8 billion raised across 161 deals, according to a new report by Mercom Capital Group, Healthcare IT News reports.

Q2 2014 Investment Details

According to the report, practice-focused companies in Q2 2014 raised $1.1 billion across 61 deals, including:

  • Eight management technology deals worth $220 million;
  • Nine analytics deals worth $204 million; and
  • Four population health management deals worth $144 million.

Meanwhile, consumer-based firms raised $678 million in 100 deals. Specifically, 45 mobile health deals raised $401 million, including:

  • $61 million for shopping, rating and scheduling applications;
  • $115 million for personal health companies;
  • $129 million for app developers; and
  • $226 million for wearable devices.

The report also noted a record number of mergers and acquisitions in Q2 2014, including:

  • 20 mergers and acquisitions among health information management companies;
  • 11 such transactions among revenue cycle management;
  • 11 such transactions among service providers;
  • Six such transactions among mobile health firms; and
  • Six such transactions among personal health companies.

Overall, Q2 2014 marked “several milestones” for health IT venture capital funding, according to Mercom CEO Raj Prabhu. It was the first billion-dollar quarter for the health IT sector, which has raised more money so far in 2014 than it did all of last year — $2.6 billion in 2014 compared with $2.2 billion in 2013 (Miliard, Healthcare IT News, 7/16).

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