SOURCE: Mercom Capital Group

Mercom Capital Group

July 18, 2017 11:01 ET

Healthcare IT / Digital Health Sector Sets All-Time Record With $4 Billion in VC Funding in 1H 2017, $2.4 Billion in Q2 2017, Reports Mercom Capital Group

AUSTIN, TX--(Marketwired - Jul 18, 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 second quarter (Q2) and first half (1H) of 2017. Mercom's comprehensive report covers deals of all sizes from across the globe.

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Global VC funding for Health IT companies in 1H2017 was 36 percent higher year-over-year (YoY) with a record $4 billion (B) raised in 359 deals versus the $3B raised from 286 deals in 1H2016. Q22017 VC funding also was a record, increasing 47 percent to $2.4B in 194 deals versus the $1.6B raised in 165 deals in Q12017.

Digital Health has surpassed $22.5B in the 3,031 VC funding deals Mercom has tracked since 2010.

Total corporate funding in Health IT companies -- including VC, debt, and public market financing -- came to $2.4B in Q22017 versus $1.8B in Q12017.

Healthcare IT VC Funding 1H2016-1H2017

Healthcare IT VC Funding Q22016-Q22017

"This was the best half and best quarter ever for digital health companies as a result of a few very large deals. We are now comfortably on pace to have the biggest funding year for digital health companies," commented Raj Prabhu, CEO and Co-Founder of Mercom Capital Group. "Even with such robust funding, there is still no sign of any digital health IPOs and M&A activity is yet to catch up to the funding momentum."

Top categories 1H2017: Patient Engagement Solutions $684 million (M), Data Analytics $458M, mHealth Apps $399M, Booking $391M, Telemedicine $297M, Mobile Wireless $275M, Electronic Medical Records $237M.

Top-Funded Healthcare IT Categories 1H2017

Top Health IT Categories Q2 2017

Top VC deals Q22017: $500M Outcome Health, $231M Modernizing Medicine, $140M PatientPoint, $90M Blink Health, $75M WuXi Nextcode, $70M ClassPass.

Top VC Funding Deals Q2 2017

454 investors (including two accelerators/incubators) participated in Q22017 funding versus 309 in Q12017 (four accelerators/incubators).

Twenty-five countries recorded VC funding in Q22017.

In 1H 2017, there were a total of 90 Healthcare IT M&A transactions, versus 110 in 1H 2016.

Prominent M&A transactions Q22017: Best Doctors for $440M by Teladoc, Cochlear's of Sycle for $78M, athenahealth's of Praxify Technologies for $63M, Entrada by NextGen Healthcare for $34M.

Top Health IT M&A Transactions Q22017

This report covered 732 investors and companies.

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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: To get our market intelligence reports, visit: