7 Statistics on Health IT Venture Funding in Q1

Venture capital investment in health IT companies hit a record high during the first quarter of 2014. The $858 million raised during Q1 was a 154 percent increase over the $337 million raised during Q4 2013, according to a Mercom Capital report.

The report found the following:

  • Investments were fairly split between consumer-facing and provider-facing companies. Developers of technology for healthcare practices raised $460 million in venture capital funding across 60 total deals, and consumer product vendors raised $398 million across 103 deals.
  • Among provider-facing companies, the areas that received the most funding include practice management ($124 million across eight deals), health information exchange ($78 million in two deals) and data analytics ($43 million in seven deals).
  • Most of the consumer-facing investments went to mHealth companies ($198 million in 61 deals). Telehealth companies received $79 million across 14 deals.
  • Of the 163 deals in Q1, 65 were investments of under $2 million in early-stage or startup companies, including 29 instances of accelerator or incubator funding.
  • Dedalus Group, a practice management software vendor, had the largest deal in Q1, bringing in $89 million in a single raise.
  • Khosla Ventures was the firm that invested in the most companies (three) during Q1.
  • By state, California was the site of the most deals (42) in Q1.

More Articles on the Health IT Market:

HIMSS Analytics: 3 Types of EMR Apps Poised for Growth
3 Hints Apple's iWatch Will Have mHealth Capabilities
Health IT Funding Breaks Records in Q1

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars