Q1 2013 heath IT venture capital funding hits $493M
Venture capital funding of the health IT sector 2013 hit another record with $493 million raised during the first quarter of 2013, according to a recent report from global communications and consulting firm Mercom Capital Group.
The trend reflected stronger investor interest in consumer-focused companies like mobile health, telehealth, personal health, social health and scheduling, Mercom Capital Group researchers found.
In total, Q1 2013 saw 104 funding deals compared to 51 in the final quarter of 2012. An increase also was seen in early stage deals, with 42 during the first quarter of 2013 compared to 14 in Q4 2012. The total five venture capital funding deals include:
- $41 million raised by Health Catalyst (investors Norwest Venture Partners, Sequoia Capital, Sorenson Capital, Kaiser Permanente Ventures and CHV Capital)
- $40 million raised by xG Health Solutions (investor Oak Investment Partners)
- $31 million raised by NantHealth (investor undisclosed)
- $30 million raised by Fitbit (investor undisclosed)
- $30 million raised by One Medical Group (investors Google Ventures, Benchmark Capital, DAG Ventures, Oak Investment Partners and Maverick Capital)
Mercom Capital Group reported 46 mergers and acquisitions during Q1 2013. Of those, 22 health information management companies were acquired. The quarter’s five highest value disclosed health IT mergers and acquisitions were:
- Athenahealth acquired Epocrates for $293 million
- Allscripts acquired dbMotion for $235 million
- JLL Partners acquired BioClinica for $123 million
- Lexmark International acquired Acuo Technologies for $45 million
- Accelrys acquired Vialis for $5 million