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Global VC funding in Healthcare IT & Digital sector sets all-time record with USD 4 bn

New Delhi [India], July 19 (ANI): Global VC funding for Healthcare IT and Digital Health companies in the first half (1H) of the year 2017 was 36 percent higher year-over-year (YoY) with a record USD four billion raised in 359 deals compared to the USD three billion raised from 286 deals in 1H of 2016.

Indian Healthcare IT and Digital Health companies raised $84 million in VC funding in 30 deals in the first half (1H) of the year 2017. This is much higher than the deals signed in the same period in 2016. Indian Healthcare IT and Digital Health companies had raised only USD 30 million in 19 deals in 1H 2016. In Q2 2017, India companies raised USD 23 million in 19 deals compared to the USD 61 million raised in 11 deals in Q1 2017.

Q2 2017 VC funding also was at its highest ever, increasing 47 percent to USD 2.4 billion in 194 deals compared to the USD 1.6 billion raised in 165 deals in Q1 2017. Q2 2017 had the second most deals recorded (194) in a quarter since 2010. In Q3 2014, there were 212 deals.

Mercom Capital Group, llc, a global communications and research firm, released its report on funding and mergers and acquisitions (M&A) activity for the Healthcare Information Technology (IT) / Digital Health sector for the second quarter and first half (1H) of 2017. Mercom's comprehensive report covers deals of all sizes from across the globe.

Global VC funding for Healthcare IT / Digital Health companies in first half (1H) of 2017 was 36 percent higher year-over-year (YoY) with a record USD four billion raised in 359 deals compared to the USD three billion raised from 286 deals in 1H 2016. Q2 2017 VC funding also was at its highest ever, increasing 47 percent to USD 2.4 billion in 194 deals compared to the USD 1.6 billion raised in 165 deals in Q1 2017. Q2 2017 had the second most deals recorded (194) in a quarter since 2010. In Q3 2014, there were 212 deals.

The Digital Health sector has now received $22.5 billion in the 3,031 VC funding deals Mercom has tracked since 2010.

Total corporate funding in Health IT companies - including VC, debt, and public market financing - came to USD 2.4 billion in Q2 2017 compared to USD 1.8 billion in Q1 2017.

"This was the best half and best quarter ever for digital health companies as a result of a few very large deals. We are now comfortably on pace to have the biggest funding year for digital health companies," commented Raj Prabhu, CEO and Co-Founder of Mercom Capital Group. "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."

Healthcare practice-centric companies received 31 percent of the funding in Q2 2017, raising USD 745 million in 63 deals compared to USD 574 million in 50 deals in Q1 2017. Consumer-centric companies accounted for 69 percent of the funding this quarter, raising USD 1.6 billion in 131 deals compared to USD one billion in 115 deals in Q1 2017.

The top funded areas in 1H 2017 were: Patient Engagement Solutions USD 684 million, Data Analytics USD 458 million, mHealth Apps USD 399 million, Booking USD 391 million, Telemedicine USD 297 million, Mobile Wireless USD 275 million, and Electronic Medical Records USD 237 million.

The top funded categories in Q2 2017 were: Patient Engagement companies with USD 669 million, mHealth Apps companies with USD 325 million, Data Analytics companies with USD 264 million, and Electronic Medical Records companies with USD 236 million.

There were 68 early stage deals in Q2 2017, including two accelerator and incubator deals.

The Top VC deals in Q2 2017 included: 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 two accelerators/incubators) participated in funding deals in Q2 2017 compared to 309 investors in Q1 2017, of which four were accelerators/incubators.

Twenty-five different countries recorded Healthcare IT VC funding deals in Q2 2017.

In 1H 2017, there were a total of 90 Healthcare IT M&A transactions, compared to 110 in 1H 2016. M&A activity in the second quarter of 2017 was down with 41 M&A transactions (five disclosed) compared to the 49 M&A transactions (seven disclosed) in Q1 2017.

Practice Management Solutions and Data Analytics companies were involved in the most M&A transactions in Q2 2017 with five each, followed by Medical Imaging companies with three transactions.

Prominent M&A transactions in Q2 2017 included: the acquisition of Best Doctors for USD 440 million by Teladoc, Cochlear's acquisition of Sycle for USD 78 million, athenahealth's acquisition of Praxify Technologies for USD 63 million, and the acquisition of Entrada by NextGen Healthcare (a subsidiary of Quality Systems) for USD 34 million. (ANI)


This story has not been edited. It has been published as provided by ANI

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