Health IT venture cash may be waning
October 15, 2014 in Medical Technology
Mercom officials noted another interesting characteristic of the third quarter: record funding for companies abroad.
“Companies from countries outside of the United States, accounted for a record 21 percent share of the funding,” said Raj Prabhu, chief executive officer and co-founder of Mercom Capital Group, in a press statement announcing the report. “While consumer-centric companies attracted the majority of the funding this quarter, MA has been a different story with the majority of the deals involving practice-focused companies.”
Consumer-focused technologies, which includes mobile health and telehealth, walked away with the lion’s share of capital — 65 percent of all VC cash for the quarter, or $623 million across 140 deals. In Q2, that number stood at $678 million across 100 deals.
[See also: Digital health sees record cash flow.]
Telehealth had its best quarter to date, raking in $101 million in 16 deals.
Revenue cycle management and data analytics also did well, with $75 million and $71 million respectively.