Health IT deals on track to hit $15 billion in Q2: 5 things to know

Health IT deals are still on track for a strong 2020 despite the pandemic, according to a report from CB Insights.

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Five observations:

1. Healthcare companies raised $8.8 billion worldwide from April 1 to May 24, 2020. There were 672 deals during that time.

2. Healthcare is on pace to close the second quarter with more than $15 billion in funding and 1,180 deals, which would be one of the strongest quarters over the past three years.

3. Funding in the second quarter could be up 6 percent over the first quarter and 11 percent year-over-year for healthcare companies, if current projections hold true.

4. Healthcare companies in North America are reporting a funding dip while companies based in Asia and Europe are seeing funding increase. Projected funding for North American companies is $8.9 million, down from $10.3 million in the second quarter.

5. There were 14 companies that had mega-rounds of funding in the second quarter through May 24, including Erasca, which closed a $200 million series B funding round. The biggest deal for a U.S.-based digital health company is Amwell’s $194 million funding round.

More articles on digital transformation:
Northwell Health, University Hospitals join $12M funding round for virtual care company
Cleveland Clinic Ventures had 7 spinoffs, invested $10M in 10 companies last year
Only 12% of CFOs expect to cut, defer digital transformation spending: survey

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