VC funding in healthcare IT to exceed $2 billion in 2013

Recording $623 million, the venture capital (VC) funding in healthcare information technology (IT) continued to grow in Q2 2013, reports Mercom Capital Group


Mercom Capital Group, llc, a global communications and consulting firm, recently released its report on funding and mergers and acquisitions (M&A) activity in the Healthcare IT sector for the second quarter of 2013.

According to the report, venture capital (VC) funding in the sector continued its rapid growth in another record quarter with $623 million raised. There were 168 funding deals this quarter compared to 104 the previous quarter and 163 in all of 2012.

"VC funding in Healthcare IT is now on pace to exceed $2 billion in 2013," commented Raj Prabhu, CEO of Mercom Capital Group. "What government financial incentives did to spur EHR adoption and practice-focused technologies, "open data" is doing for consumer-focused companies that turn data into usable applications and services."

The impact of healthcare data on innovation, products and private investments is evidenced in Mercom's Q2 2013 report. The marked shift of VC money going from practice-focused technologies towards consumer-focused technologies in Q1 has picked up pace this quarter with consumer-focused companies receiving twice the amount of funding ($416 million in 112 deals) compared to practice-focused companies ($207 million in 56 deals).

Proteus Digital Health, a digital health feedback system provider, raised $45 million to make it the largest recipient of funding. lifeIMAGE, a network for securely sharing medical images and related health information, raised the second highest amount in the second quarter when it closed a $35.6 million Series C round. Blue Health Intelligence, a healthcare data and analytics company, raised $35.5 million. WorldOne brought in $35 million and Watermark Medical, closed out the Top 5 with $32.2 million.


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