Mercom Capital Group www.mercomcapital.com just released their Q2 2016 Healthcare IT/Digital Health Funding Report. The report shows that Venture Capital (VC) funding reached new heights at $1.6 billion resulting in close to $3 billion raised in 286 deals in the first half of the year. This is a 50 percent increase as compared to the nearly $2 billion raised during the same period in 2015.
The big reason for the jump in VC funding was record fundraising by Chinese companies. Chinese companies outraised American companies $733 million to $719 million. “This is the first time since 2010 that health IT companies in the U.S. have been outraised by other countries,” said Raj Prabhu, CEO and Co-Founder of Mercom Capital Group. “This quarter is likely an outlier, but it is also a sign that investors and companies should pay close attention to digital health markets worldwide.”
Healthcare IT VC funding in the second quarter of 2016 originated from 12 countries worldwide. China topped the list accounting for 46 percent of total funding. Funding fell sharply in the U.S by almost 40 percent Quarter-over-Quarter. This was the lowest funding quarter for American health IT companies since Q1 2015.
Other highlights show the top funded health IT technologies for Q2 2016 to be mHealth apps ($799 million), Data Analytics ($234 million), Wearables/Sensors ($129 million) and Mobile Wireless to be ($75 million).
The report’s top disclosed M&A transactions in Q2 2016 were Veritas Capital’s acquisition of Verisk Analytics’ healthcare services business for $820 million, MedData’s acquisition of Cardon Outreach for $400 million, Nokia acquiring Withings for $191 million, and Teladoc’s acquisition of HealthiestYou for $125 million.
A total of 549 companies and investors were covered in this report with deals of all sizes covered across the globe. The report does not include bioinformatics or medical device deals. To learn more, go to http://bit.ly/MercomHITQ22016 or email Matt Barbour at Mercom at matthew@mercomcapital.com or call 512-215-4452.