Global venture capital funding for health IT and digital health companies rose to its highest level in any quarter, according to Mercom Capital Group, which tracks the ups and downs of these investments.
VC funding in the first half of 2017 set a record at 36 percent higher than the same period in 2016 and rose to USD 4 billion, up from USD 3 billion the year before. Mercom’s findings show USD 2.4 billion in 194 deals in Q2 2017 compared with USD 1.6 billion in 165 deals in Q1 2017.
Top categories in the first half of 2017 were: patient engagement companies with USD 684 million, data analytics companies with USD 458 million, mobile apps companies with USD 399 million, and healthcare appointments booking companies with USD 391 million.
“This was the best half and best quarter ever for digital health companies as a result of a few very large deals,” Raj Prabhu, CEO and co-founder of Mercom Capital Group, said in a statement. “We are now comfortably on pace to have the biggest funding year for digital health companies. Even with such robust funding, there is still no sign of any digital health IPOs and M&A activity is yet to catch up to the funding momentum.”
The top venture capital deals in Q2, 2017 were: USD 500 million raised by Outcome Health, USD 231 million raised by Modernizing Medicine, USD 140 million raised by PatientPoint, USD 90 million raised by Blink Health, USD 75 million raised by WuXi Nextcode, and USD 70 million raised by ClassPass.
A total of 454 investors including accelerator/incubators participated in funding deals in Q2 2017.
Mercom also pointed to some notable mergers and acquisitions that occurred in the first half of the year: Teledoc acquired Best Doctors for USD 440 million, Cochlear bought audiology practice software company sycle for USD 78 million, athenahealth paid USD 63 million for Praxify and NextGen bought Entrada for USD 34 million. – Medical Buyer Bureau