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).