A Record Quarter for Healthcare IT

In the scheme of things, the healthcare IT industry is fairly a new one.  Over the past decade, the broader healthcare industry has recognized how IT can be integrated to create more efficient and effective processes.  With the regulatory changes that make healthIT prime for growth, VCs have recognized the investment opportunity, investing 18% more capital into healthcare IT companies this quarter, compared to Q2.

Last month, Mercom Capital Group reported that venture capital investment in the healthcare IT sector has increased in the third quarter with $737 million was invested into 151 deals.

According to this quarter’s data, Mercom reported:

  • The dollar amount of disclosed deals surpassed the second quarter total of $623 million;

  • Year to date, the Healthcare IT sector has raised a disclosed $1.85 billion;

  • In the third quarter, $248 million was invested into 92 consumer-focused deals;

  • The most funding this quarter, $161 million, was invested in the mobile health category, including mobile health apps and sensors;

  • Healthcare practice-focused technology companies received $489 million in 59 deals with population health, EHR/EMR, practice management, and data analytics companies all receiving significant investment this quarter, too;

  • There were a total of 168 investors closing deals in Q3 2013, including VCs, accelerators, incubators and crowdfunding platforms, compared to 161 investors in Q2 2013.