Mercom Capital Group, llc, a global communications and consulting firm has released its report on funding and mergers and acquisitions (M&A) activity in the Healthcare Information Technology (IT) sector for the first quarter of 2014. Mercom's comprehensive report looks at deals of all sizes in Healthcare IT across the globe.
Venture capital (VC) funding in the sector continued at a record pace with $858 million raised in 163 deals, a 154 percent increase compared to the $337 million raised in Q4 2013. This was the highest dollar amount raised by the sector in a single quarter to date.
"Funding into the Healthcare IT sector continues at an astonishing pace. Venture capital funding in Healthcare IT has reached almost $5 billion in about 1,000 deals since 2010," commented Raj Prabhu, CEO and Co-Founder of Mercom Capital Group.
Healthcare practice-focused technology companies received half of all VC investments in the first quarter of 2014, with $460 million in 60 deals. Areas that received the most funding under this category were Practice Management with $124 million in eight deals, Health Information Exchange with $78 million in two deals, and Data Analytics with $43 million in seven deals.
Consumer-focused companies received $398 million in 103 deals, with the majority of the funding going into the Mobile Health category ($198 million in 61 deals). Telehealth companies received $79 million in 14 deals and Scheduling, Rating & Shopping companies received $66 million in six deals