CST: 28/07/2016 05:26:23   

Healthcare IT VC Funding in 2015 Plateaus at $4.6 Billion, Reports Mercom Capital Group

195 Days ago

Over $13B Raised by Health IT / Digital Health Companies Since 2010

AUSTIN, TX--(Marketwired - Jan 14, 2016) - Mercom Capital Group, llc, a global communications and consulting firm, released its annual funding and mergers and acquisition (M&A) report for the Healthcare Information Technology (IT) / Digital Health sector in 2015. Mercom's comprehensive report covers deals of all sizes, globally.

Chart: Healthcare IT VC Funding 2010-2015

Venture capital (VC) funding, including private equity and corporate VC, in the Health IT sector totaled $4.6B (billion) in 574 deals in 2015, slightly below 2014's record $4.7B in 670 deals -- still a big year for the sector. Total corporate funding in Health IT companies including debt and public market financing (including IPOs) totaled $7.9B.

Since 2010, the sector has received $13.4B in VC funding and almost $7B in debt and public market financing (including IPOs), bringing total funding to $20.4 billion.

"After an incredible run from 2010-2014, VC funding into Health IT companies leveled off last year. We are beginning to see a slowdown in early stage deals, a sign the sector is beginning to mature. We are also seeing funding trends shift from practice-focused to consumer-focused technologies and products," commented Raj Prabhu, CEO and Co-founder of Mercom Capital Group. "Apart from innovative technologies and solutions, business and revenue models are becoming more important."

Chart: Healthcare IT VC Funding 2010-2015 (By Technology)

Practice-centric companies raised more than $1.5B in 171 deals. Consumer-centric companies grossed $3.1B in 403 deals. Mobile Health (mHealth) companies led with $1.1B.

Areas with highest YoY funding growth: Comparison Shopping with 615 percent, Scheduling/Appointment Booking with 370 percent and Wellness with 126 percent.

Technology Areas with Highest Funding in 2015:
Scheduling/Appointment Booking: $790M
mHealth apps: $750M
Telemedicine: $439M
Wellness: $386M
Data Analytics: $294M
Wearables: $277M
Comparison Shopping: $232M

Top-funded Health IT Technologies since 2010:
mHealth Apps: $1.4B
Scheduling/Appointment Booking: $1.1B
Wearables: $1B
Telemedicine: $929M
Clinical Decision Support: $899M
Data Analytics: $810M
Practice Management Solutions: $691M
Wellness: $671M

Top VC funding rounds in 2015 were Guahao's $394M raise, NantHealth's $200M round and ZocDoc's $130M raise.

A total of 909 investors participated in VC funding for Healthcare IT companies in 2015. The top VC investors in 2015 were New Enterprise Associates and Rock Health with nine deals each.

Chart: Healthcare IT - Top VC Funding Rounds in 2015

There were 55 accelerator and incubator deals in 2015.

A total of 27 countries had Health IT VC funding deals in 2015.

There were 219 M&A transactions in the sector in 2015. Twenty-seven companies made multiple transactions.

"M&A deal activity was also flat year-over-year but, unlike funding, most of the companies acquired were practice focused as opposed to consumer focused," continued Prabhu.

Mobile Health Apps led M&A transactions with 22, followed by Practice Management Solutions with 18 and Data Analytics companies with 17.

Top disclosed M&A transactions included the $1B acquisition of Merge Healthcare by IBM, the acquisition of Altegra Health by Emdeon for $910M and the $500M acquisition of Virtual Radiologic Corporation by MEDNAX.

Chart: Top 5 Healthcare IT M&A Transactions in 2015 By Disclosed Amount

Seven Digital Health IPOs raised $2.2B this year. Fitbit led the pack with $841.2M.

To learn more about the report, visit:http://bit.ly/MercomHITQ42015

About Mercom Capital Group
Mercom Capital Group is a global communications and research firm focused on healthcare information technology, cleantech and financial communications. Mercom advises companies on new market entry, custom market intelligence and strategic decision-making. Visit: www.mercomcapital.com. To get our market intelligence reports, visit: mercomcapital.com/market_intelligence.php.