Venture capital funding for health IT spikes to $5B+ in 2016: 5 insights

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Venture capital funding, including private equity and corporate venture capital, in healthcare IT totaled $5.1 billion in 2016, according to a report by Austin, Texas-based Mercom Capital Group, a global research and communications firm. In 2015, health IT venture capital funding reached $4.6 billion.

Here are five insights:

1. In 2016, there were 622 deals in the health IT/digital health sector.

2. Since 2010, the sector has received $18.5 billion in venture capital funding, with a total of 2,672 deals.

3. Consumer-centric companies raised $3.5 billion in 2016, up from $3.1 billion in 2015. Practice-centric companies raised more than $1.6 billion, as compared to $1.5 billion raised in 2015.

4. The four top funded health IT areas in 2016 were:

•    Mobile apps: $1.3 billion
•    Wearable sensors: $592 million
•    Data analytics: $574 million
•    Telemedicine: $528 million

5. Merger and acquisition transactions in health IT dropped to 205 from 219 in 2015. Mobile health apps saw the most M&A transactions in 2016.

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