Health IT Funding Reaches $956M in Q3 2014, Report Finds

October 16, 2014 in News

Venture capital funding for health IT companies in the third quarter of this fiscal year reached its second-highest level since 2010, according to a new report by Mercom Capital Group, Healthcare IT News reports (McCann, Healthcare IT News, 10/15).

However, Q3 venture capital funding still was down by nearly 50% compared withQ2 2014, which was a rare quarter (Mercom release, 10/15).

Report Findings

According to the report, total Q3 2014 funding reached $956 million across 212 deals, compared with $1.8 billion across 161 deals in Q2 2014 (Healthcare IT News, 10/15). More than 100 of the deals in Q3 2014 involved less than $2 million.

The top three funding deals in Q3 2014 included:

  • $70 million raised by DXY;
  • $52 million raised by Proteus Digital Health; and
  • $50.3 million raised by Teladoc (Mercom release, 10/15).

Consumer-based, mobile health firms raised $345 million across 82 deals, including:

  • $101 million for telehealth services;
  • $85 million for personal health companies;
  • $70 million among social health companies; and
  • $23 million for shopping and rating applications.

Practice-centered health IT companies raised $333 million across 72 deals in Q3 2014, compared with $1.1 billion across 61 deals in Q2 2014.

Acquisitions, Mergers

Meanwhile, the report noted that merger and acquisition activity was at its highest level in terms of dollars since 2010.

Specifically, there were 12 disclosed transactions worth $4.7 billion in Q3 2014, compared with 12 disclosed transactions worth $2.2 billion in Q2 2014 (Slabodkin, Health Data Management, 10/15).

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