Mercom Capital Group’s www.mercomcapital.com Healthcare Funding and Mergers and Acquisitions (M&A) Report for Q2 2015 shows that funding for the Health IT/digital health sector came in at $1.2 billion, a 52 percent increase over the previous quarter. For the first time since Mercom began tracking healthcare funding, the amount of capital raised through IPOs outpaces venture capital funding.
Consumer-centric companies raised $724 million in 97 deals this quarter compared to $437 million in 98 deals in Q1 2015. The areas that received the most funding under this category were Clinical Decision Support companies with $206 million, followed by Data Analytics companies with $91 million, EHR companies with $26 million, and Practice Management Solutions companies with $20 million.
According to Raj Prabhu, CEO and Co-Founder of Mercom Capital Group, “This quarter telehealth, personal health/wellness, and rating and comparison shopping companies all had their best fundraising quarter, while funding for mobile health and apps dropped.”
Top VC funding deals in Q2 2015 2015 included a total of 271 participants in Healthcare IT, 29 of which participated in multiple rounds. The investors with the highest number of funding deals this quarter included Venrock followed by 500 startups, Cambia Health Solutions, Khosla Ventures, Qualcomm Ventures, Rock Health, Slow Ventures, and Tencent Holdings.
The Healthcare IT M&A transactions in Q2 2015 included Citadel Group acquiring PJA Solutions, a provider of laboratory information systems software products for diagnostic laboratories and clinical applications to public hospitals and related sectors, for $45 million.
Teledoc acquired Stat Health Services, a provider of telemedicine services for non-emergency health conditions, for $30.5 million. Also Arcadia healthcare Solutions acquired Sage Technologies, a provider of management and analytics software for managed care businesses and ACOs for $298 million.
Go to http://store.mercom.mercomcapital.com/product/q2-2015-healthcare-it-digital-health-funding-andma-report to learn more about the report. For a copy of Mercom’s market intelligence reports, go to http://meercomcapaital.com/market_inelligence.php.