VC funding in health IT shows significant increase globally. (Source: Mercom Global Report)
Funding into Healthcare Information Technology and Digital Health companies in Q1 2015 totaled $784 million in the first quarter of 2015.
As per the data generated through its latest report, the Mercom Global has revealed that the mobile health (mHealth) companies accounted for 36 percent of total funding raised by digital health / health IT companies this quarter and also received the largest share (65 percent) of funding among consumer-focused companies, with $282 million in 56 deals (compared to $284 million in 41 deals in Q4 2014).
Though funding fell across all technology groups this quarter, mHealth was the only area where funding levels did not decline significantly compared to the previous quarter. A total of 112 investors participated in mHealth funding rounds in Q1. GE Ventures was only investor that participated in multiple deals.
Within mobile health, mHealth App companies captured the largest share bringing in $220 million in 35 deals. Last month, the Food and Drug Administration released the final guidance on mobile medical apps, bringing some much needed clarity and certainty to the mobile health market. The final guidance confirms a light, hands-off approach to regulating mhealth apps.
Mobile health companies have received more than $2 billion in over 500 deals since 2010. Mobile health apps, in particular, have received about $900 million in more than 280 deals since 2010.