SOURCE: Mercom Capital Group

Mercom Capital Group

October 17, 2017 08:55 ET

Healthcare IT / Digital Health Companies Raise $5.5 Billion in VC Funding in First Nine Months of 2017, More than All of 2016

$1.5 Billion in VC Funding in Q3 2017, Reports Mercom Capital Group

AUSTIN, TX--(Marketwired - Oct 17, 2017) - Mercom Capital Group, llc, a global communications and research firm, 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 (Q3) and first nine months (9M) of 2017. Mercom's comprehensive report covers deals of all sizes from across the globe.

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Global VC funding in 9M2017 increased 31 percent year-over-year (YoY) with $5.5 billion (B) in 586 deals versus $4.2B in 463 deals in 9M2016. Q32017 VC funding was $1.5B in 227 deals, down 38 percent from the record $2.4B in 194 deals in Q22017.

Digital Health has received $24B in 3,258 VC funding deals Mercom's tracked since 2010.

Total corporate funding in Health IT -- including VC, debt, and public market financing -- was $1.7B in Q32017 versus Q22017's $2.4B.

Healthcare IT VC Funding: 9M2013-9M2017 and Q32016-Q32017

"The record breaking funding year continues for digital health companies. The 227 funding deals in Q3 was the most ever for a single quarter. The third quarter was all about Data Analytics with those companies garnering almost a third of the funding in Q3 and artificial intelligence companies receiving more than $200 million," commented Raj Prabhu, CEO and Co-Founder of Mercom Capital Group.

Top categories 9M2017: Data Analytics $1B, Patient Engagement Solutions $686 million (M), mHealth Apps $549M, Telemedicine $529M, Booking $407M, and Mobile Wireless $407M.

Top-Funded Healthcare IT Categories 9M2017

Top categories Q32017: Data Analytics $554M, Telemedicine $232M, mHealth Apps $150M, and Mobile Wireless $132M.

Top Health IT Categories Q32017

Top VC deals Q32017: $165M WuXi Nextcode, $75M M2Gen, $70M Tempus, $37M AbleTo, and $34M HealthEdge.

Top VC Funding Deals in Q3 2017

401 investors (including seven accelerators/incubators) participated in Q32017 funding versus 454 investors in Q22017 (two accelerators/incubators).

Twenty-six countries recorded VC funding in Q32017.

In 9M 2017 there were 146 Digital Health M&A transactions; 9M2016 had 163.

Notable M&A transactions Q32017: WebMD's $2.8B acquisition by Internet Brands; the healthcare technology and consulting business of Advisory Board Company by Optum for $1.3B; Konica Minolta's acquisition of Ambry Genetics Corporation for $1B; Navicure acquired ZirMed for $750M; FNFV Group acquired T-System for $200M; Allscripts acquired McKesson's EHR and revenue cycle tools for $185M.

Top Health IT M&A Transactions Q3 2017

This report covered 738 investors and companies.

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Mercom Capital Group
Mercom Capital Group is a global communications and research firm focused on healthcare information technology, cleantech and financial communications. Mercom advises companies on new market entry, custom market intelligence and strategic decision-making. Visit: www.mercomcapital.com. To get our market intelligence reports, visit: www.mercomcapital.com/market_intelligence.php.