2015 HIT VC funding comes in just under 2014's record
Health IT venture capital (VC) funding totaled $4.6 billion in 574 deals in 2015, slightly below 2014’s record $4.7 billion in 670 deals, according to a report from Mercom Capitol Group. Total corporate funding in health IT companies including debt and public market financing (including IPOs) came to $7.9 billion for 2015, up slightly compared to $7.8 billion in 2014.  Since 2010, the sector has received $13.4 billion in VC funding in 2,050 deals and almost $7 billion in debt and public market financing (including IPOs), bringing the total funding for the sector to $20.4 billion. “After an incredible run from 2010-2014, VC funding into health IT companies leveled off last year. We are beginning to see a slowdown in early-stage deals, a sign the sector is beginning to mature. We are also seeing funding trends shift from practice-focused to consumer-focused technologies and products,” Raj Prabhu, CEO and co-founder of Mercom Capital Group, said in a release. “Apart from innovative technologies and solutions, business and revenue models are becoming more important.” VC funding dipped in Q4 2015 with $1.1 billion in 145 deals compared to $1.6 billion in 148 deals in Q3 2015. The top funded areas are data analytics companies with $294 million, followed by clinical decision support companies with $220 million and practice management solutions companies with $183 million. Consumer-centric companies grossed about $3.1 billion in 403 deals, up from $2.3 billion in 436 deals last year. Mobile health companies raised the most funding with more than $1.1 billion. Most of the funding within the mHealth category went to mHealth apps with $750 million and wearables/sensors with $277 million.  A total of 909 investors participated in VC funding rounds for health IT companies in 2015 compared to 732 in 2014. The top VC investors in 2015 were New Enterprise Associates and Rock Health with nine deals each, followed by Merck Global Health Innovation Fund and Venrock with eight deals each. Access the report.
Beth Walsh,

Editor

Editor Beth earned a bachelor’s degree in journalism and master’s in health communication. She has worked in hospital, academic and publishing settings over the past 20 years. Beth joined TriMed in 2005, as editor of CMIO and Clinical Innovation + Technology. When not covering all things related to health IT, she spends time with her husband and three children.

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