However, veteran investor Anne DeGheest warned of a looming, dot-com-reminiscent burst in the health IT industry in a recent article in The Wall Street Journal.
There’s a bubble forming in the health IT industry, she explained. “The country is re-shaping its largest industry, and it’s the biggest experiment we’ve ever done with the American economy. It’s opened the floodgates, and there is a sort of Gold Rush because there is massive opportunity,” she told the Journal.
The large influx of startup and Series A funding health IT companies have received means they will have to answer tough questions from investors in the not-too-distant future about their business plans and continued growth opportunities — questions they might not be able to answer.
“There is tremendous opportunity,” she said in the report. “But there is too much activity at the seed and Series A level, and too much a rush to build a product. To raise a Series B, these companies are going to need metrics. Without that, a significant number could fail. I’m hoping to see more emphasis on building solid businesses.”
More Articles on the Health IT Market:
Wireless EHR Market to Hit $23.5B by 2018
Allscripts Stock Rises on Optimistic 2-Year Outlook
Surgical Information Systems Acquires AmkaiSolutions
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