SOURCE: Mercom Capital Group

Mercom Capital Group

October 18, 2016 13:00 ET

Q3 2016 Healthcare IT VC Funding Reaches $1.25 Billion Reports Mercom Capital Group

$4.2 billion HIT funding year-to-date ahead of 2015's pace

AUSTIN, TX--(Marketwired - Oct 18, 2016) -   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 Q32016. Mercom's comprehensive report covers deals of all sizes across the globe.

Full report

Venture capital (VC) funding in the Healthcare IT (HIT) sector, including private equity and corporate venture capital, totaled $1.25B (billion) in 177 deals in Q32016 compared to $1.6B in 140 deals in Q22016. So far this year, more than $4.2B has been raised in 463 deals, north of the $3.6B raised during the same period in 2015.

Healthcare IT VC Funding Q32015-Q32016

Healthcare IT VC Funding 2010-2016YTD

"International funding deals continue to be strong, especially in China boosting overall totals," said Raj Prabhu, CEO and Co-Founder of Mercom Capital Group. "2016 is on pace to be the best fundraising year for the sector."

There were 118 VC funding deals involving U.S. companies in Q32016 and 59 deals from other countries around the world. In Q22016, 108 deals were recorded in the U.S. and 32 in the rest of the world.

There were 87 deals at $2M (million) or below, including 47 Accelerator/Incubator deals in Q32016. This is a significant increase from Q22016 when there were just 43 deals at $2M or below with only 12 Accelerator/Incubator deals.

Top Funded Healthcare IT Technologies Q32016

Healthcare consumer-centric companies raised $851M in 128 deals, accounting for 68 percent of the total $1.25B raised in Q32016 compared to $1.2B in 95 deals in Q22016. Healthcare practice-centric companies secured 32 percent of the funding with $404M in 49 deals, compared to the $360M raised in 45 deals in Q22016.

The top funded areas were mHealth apps with $253M, Telemedicine companies with $220M, Practice Management Solutions companies with $82M, Consulting companies with $77M, Mobile Wireless with $75M, Wearables and Sensors with $74M, Remote Monitoring with $65M and Payer Solutions companies with $50M.

Top Funded Healthcare IT Technologies in 2016YTD

Top VC deals for Q32016: Meet You raised $151M; Accolade secured $70M; Neusoft Xikang Healthcare Technology raised $64M; ClearCare secured $60M; InstaMed raised $50M; Specialists On Call (SOC) raised $50M.

Healthcare IT - Top VC Funding Rounds Q32016

A total of 309 investors participated in Healthcare IT deals in Q32016with 13 investors participating in multiple rounds. Bessemer Venture Partners and Canaan Partners were on top with three deals each.

There were 53 M&A transactions (16 disclosed) involving Healthcare IT companies in Q32016, compared to 53 transactions (seven disclosed) in Q22016. M&A activity was led by Mobile Health Apps with eight transactions, Practice Management Solutions companies tallied five, and Data Analytics, Population Health Management, and Remote Monitoring companies had four transactions apiece.

Top Healthcare IT - M&A Transactions Q32016

mHealth Apps and Data Analytics companies have been involved in the most M&A transactions so far in 2016 with 19 and 15 transactions respectively.

There are 595 companies and investors covered in this report.

Mercom's comprehensive report covers deals of all sizes across the globe. Our report doesn't include bioinformatics deals.

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: To get our market intelligence reports, visit: