Mercom's comprehensive report covers deals of all sizes across the globe
Mercom Capital Group, 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) / Digital Health sector in 2015. Mercom's comprehensive 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 totaled $4.6 billion in 574 deals in 2015, slightly below 2014's record $4.7 billion in 670 deals - still a big year for the sector. Total corporate funding in Health IT companies including debt and public market financing (including IPOs) came to $7.9 billion this year, up slightly compared to $7.8 billion in 2014.
As per the report, since 2010, the sector has received $13.4 billion in VC funding in 2,050 deals and almost $7 billion in debt and public market financing (including IPOs), bringing the total funding for the sector to $20.4 billion.
"After an incredible run from 2010-2014, VC funding into Health IT companies leveled off last year. We are beginning to see a slow down in early stage deals, a sign the sector is beginning to mature. We are also seeing funding trends shift from practice-focused to consumer-focused technologies and products," commented Mr Raj Prabhu, CEO and co-founder of Mercom Capital Group. He added, "Apart from innovative technologies and solutions, business and revenue models are becoming more important."
VC funding dipped in Q4 2015 with $1.1 billion in 145 deals compared to $1.6 billion in 148 deals in Q3 2015, says report.