VC Funding for Health IT Sets Yet Another Record

Open data is fueling innovation, with $623M in Q2 deals; could top $2B in 2013

Health IT venture capital funding set a 'torrid' pace in the first quarter, but Q2 deals have topped even that, as records continue to topple. There were 168 funding deals this quarter, compared to 104 in Q1 and 163 in the whole of 2012.

With $623 million dished out in the second quarter, "VC funding in healthcare IT is now on pace to exceed $2 billion in 2013," said Raj Prabhu, CEO of Mercom Capital Group, in a press statement.

"The government’s initiative to open up healthcare data has been a contributor to the surge in activity and investments in consumer-focused companies as they turn available data into usable applications and services," he said.