SOURCE: Mercom Capital Group

Mercom Capital Group

April 19, 2017 10:00 ET

Healthcare IT / Digital Health Q1 2017 VC Funding Strong with $1.6 Billion, Reports Mercom Capital Group

Second highest quarter ever for the Digital Health sector

AUSTIN, TX--(Marketwired - Apr 19, 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 first quarter of 2017. Mercom's comprehensive report covers deals of all sizes from across the globe.

Full Report

Venture capital (VC) funding, including private equity and corporate VC, in the Health IT sector almost doubled quarter-over-quarter, coming in at $1.6 billion (B) in 165 deals compared to $845 million (M) in 159 deals in Q42016. VC funding in Q12017 was also up compared to Q12016 when nearly $1.4B was raised in 146 deals. The Digital Health sector has now received $20B in VC funding since 2010.

Total corporate funding in Health IT -- including VC, debt and public market financing -- was $1.8B compared to $1B in Q42016.

VC funding in Healthcare IT has crossed $20B (2010-Q12017).

Healthcare IT VC Funding Q12016-Q12017

"Digital Health funding is off to a fast start this year and there was no visible 'Trump effect' on investments in the sector, at least in the first quarter, and publicly-traded Digital Health companies actually fared much better in Q1 than last year," commented Raj Prabhu, CEO of Mercom Capital Group.

Healthcare practice-centric companies raised $574M in 50 deals versus $261M in 42 deals Q42016. Consumer-centric companies saw $1 billion in 115 deals compared to $584M in 117 deals in Q42016.

Top Health IT Categories Q12017

Top categories Q12017: Appointment Booking $315M, Mobile Wireless $230M, Data Analytics $193M, Population Health Management $115M, Telemedicine $112M, Social Health Network $102M.

Top Health IT Categories Q12017

There were 65 early round deals; 14 Accelerator and Incubator deals.

Top VC deals included: $200M Haodaifu, $115M Alignment Healthcare, $100M PatientsLikeMe, $90M Nuna, $85M PointClickCare.

Top VC Funding Rounds Q12017

306 investors (including four accelerators/incubators) participated in Q12017 funding versus 340 investors in Q42016 (two accelerators/incubators).

19 countries saw Health IT VC funding in Q12017.

49 M&A transactions (seven disclosed) occurred in Q12017 versus 42 transactions (11 disclosed) Q42016.

Top disclosed M&A transactions: $1.1B acquisition of CoverMyMeds by McKesson, Eliza Corporation's $170M acquisition from Parthenon Capital Partners by HMS Holdings, Jiff's $134M for Castlight Health, HCI Group for $110M by Tech Mahindra.

Top Health IT M&A Transactions Q12017

573 companies and investors were covered in this report.

Mercom's comprehensive report covers deals of all sizes across the globe.

Full Report

About 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.