Health IT Attracting Huge Investments

Sector has first $1B quarter for VC, with mHealth, practice management, analytics attracting most attention.

Venture capital funding for health information technology surpassed $1 billion for the first time in Q2 2014 – far surpassed, in fact, with $1.8 billion raised in 161 deals, more than doubling the $861 million raised in the previous quarter.  With 10 funding deals for more than $50 million each, this was the most lucrative VC quarter yet, according to Mercom Capital Group. In fact, the $2.6 billion raised so far this year has already exceeded the $2.2 billion raised in all of 2013.

"It was a quarter of several milestones," said Mercom CEO Raj Prabhu, in a press statement. "It was the first billion dollar fundraising quarter for the sector which has now raised almost $7 billion in venture funding since 2010. Healthcare IT funding rounds have now crossed 1,000."

Notably, he said, mobile health companies "continue to outraise other technologies," having now raked in more than $1 billion since 2010.  Practice-centric companies garnered 61 percent of all investments in Q2, with $1.1 billion across 61 deals – especially in technology related to practice management, with $220 million in eight deals; analytics at $204 million in nine deals; and population health management raking in $144 million in four deals.  Consumer-facing technology, meanwhile, attracted $678 million in 100 deals, with most going to mobile health ($401 million across 45 deals)...