Mercom Capital Group, llc, a global communications and consulting firm, released its annual report on funding and mergers and acquisition (M&A) activity for the Healthcare Information Technology (IT) sector in 2013.
Venture capital (VC) funding in the Healthcare IT sector almost doubled in 2013, totaling $2.2 billion in 571 deals compared to $1.2 billion in 163 deals in 2012. The deal count included 139 accelerator and incubator deals. The sector also raised $648 million in debt and public market financings, bringing total corporate funding raised by the sector in 2013 to almost $3 billion. VC funding dropped in Q4 2013 with $337 million in 147 deals compared to $737 million in 151 deals in Q3.
"After record fundraising totals in 2013, Healthcare IT companies have now received $4 billion in venture funding since 2010," said Mr Raj Prabhu, CEO and Co-Founder of Mercom Capital Group. "Mobile health companies led the way in 2013 as the technology transformation of the healthcare industry continues."
Overall in 2013, consumer-centric companies raised $1.1 billion. Mobile Health companies were the largest recipient of VC funding, raising $564 million. Personal Health companies received $198 million and Social Health companies brought in $166 million.
Practice-centric companies also raised $1.1 billion in 2013. Areas that received the most funding under this category were Population Health with $179 million, Electronic Medical Record/Electronic Health Record (EMR/EHR) with $166 million and Practice Management with $162 million.