VC Funding for Healthcare IT

Venture Capital (VC) funding continues to gain momentum for healthcare IT as the Mercom Capital Group’s, annual report shows another record breaking year as VC funding more than doubled in 2014 at $4.7 billion culminating in 670 deals.

According to Raj Prabhu, CEO and Co-Founder of Mercom, “The healthcare IT sector had another phenomenal fundraising year. In the five years since Mercom started tracking funding data, the healthcare IT sector has raised $8.8 billion in VC funding and another $3.6 billion in public market and debt financings bringing the total to $12.4 billion largely driven by the HITECH and Affordable Care Act.”

Mercom reports private-centric companies raised $2.4 billion in 234 deals in 2014, including Clinical Decision Support companies with $517 million, followed by Data Analytics companies with $367 million, and Population Health Management companies with $247 million

Consumer centric companies raised $2.3 billion in 436 deals with mhealth companies the largest recipient of VC funding bringing in $1.2 billion. Within mhealth, most funding went to wearables with $526 million and mhealth apps with $507 million. Telehealth companies received $369 million, and rating and comparison shopping companies brought in $288 million.

The two top VC funding rounds in 2014 were raised by NantHealth which brought in $320 million and $135 million in two separate deals. Flatiron Health raised $130 million followed by Alignment Healthcare raising $125 million.

Proteus Digital Health came in next with $120 million raised with another $52 million raised in another deal bringing their total to $172 million for 2014. China’s raised $100 million, Dedalus Group raised $89 million, and American Well brought in $81 million.

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