Mobile companies get lion's share of VC funding for healthcare IT
Venture capital (VC) firms are pouring money into healthcare IT, and mobile health companies are getting the largest share of that funding. That is the finding of a new study from communications and consulting firm Mercom Capital Group.
According to a report in eWeek, venture capital spending on healthcare IT in 2013 totaled $2.2 billion in 571 deals. This was in contrast to $1.2 billion in 163 deals in 2012, and represents a near doubling of investments over a one-year period.
"Overall in 2013, consumer-centric companies raised $1.1 billion," the eWeek article notes. "Mobile health companies were the largest recipient of VC funding, raising $564 million." Following mobile, personal health companies received $198 in venture capital funding, and social health companies netted $166 million in VC funds.
"After record fundraising totals in 2013, healthcare IT companies have now received $4 billion in venture funding since 2010," Raj Prabhu, CEO and co-founder of Mercom Capital Group, is quoted as saying. "Mobile health companies led the way in 2013 as the technology transformation of the healthcare industry continues."
The Mercom study revealed that in addition to direct venture capital funding, the healthcare IT market received an additional $648 million in debt and private market financing. This brought the total corporate funding raised by healthcare IT in 2013 to nearly $3 billion.
- read the eWeek article