'Healthcare IT VC funding up in Q3'

Healthcare IT venture capital funding up 32 percent with $1.6 billion in Q3 2015, reports Mercom Capital Group


There were 57 M&A transactions in the Health IT sector

Mercom Capital Group released its report on funding and mergers and acquisitions (M&A) activity for the Healthcare Information Technology (IT) / Digital Health sector for the third quarter of 2015. The report covers deals of all sizes across the globe.

Venture capital (VC) funding, including private equity and corporate venture capital, in the Health IT sector increased 32 percent quarter over quarter (QoQ), coming in at $1.6 billion in 148 deals compared to $1.2 billion in 139 deals in Q2 2015; it was also up 66 percent compared to the same quarter of last year. Debt and public market financing in the sector came to $495 million in nine deals including two IPOs. Total corporate funding raised in the sector including VC, Debt and Public Market Financing raised by publicly traded companies and IPOs for Q3 2015 came to $2.1 billion.

VC funding has reached nearly $3.57 billion for 2015 year-to-date (YTD), comparable to the $3.53 billion raised during the same period in 2014.

"VC funding into Healthcare IT companies bounced back this quarter after a slow start this year. Rating, Booking and Comparison Shopping companies had their best fundraising quarter since we began tracking the category," said Mr Raj Prabhu, CEO and co-founder of Mercom Capital Group.

Healthcare practice-centric companies raised $357 million in 42 deals compared to $473 million in 41 deals in Q2 2015. Consumer-centric companies raised $1.2 billion in 106 deals this quarter compared to $727 million in 98 deals in Q2 2015.


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