Funding in Consumer-Focused Companies Surge
AUSTIN, TX--(Marketwired - Jul 16, 2013) - Mercom Capital Group, llc, a global communications and consulting firm, today released its report on funding and mergers and acquisitions (M&A) activity in the Healthcare IT sector for the second quarter of 2013.
Venture capital (VC) funding in the sector continued its rapid growth in another record quarter with $623 million (M) raised. There were 168 funding deals this quarter compared to 104 the previous quarter and 163 in all of 2012.
"VC funding in Healthcare IT is now on pace to exceed $2 billion in 2013," commented Raj Prabhu, CEO of Mercom Capital Group. "The government's initiative to open up healthcare data has been a contributor to the surge in activity and investments in consumer-focused companies as they turn available data into usable applications and services."
The marked shift of VC money going from practice-focused technologies towards consumer-focused technologies in Q1 has picked up pace this quarter with consumer-focused companies receiving twice the amount of funding ($416M in 112 deals) compared to practice-focused companies ($207M in 56 deals).
Proteus Digital Health, a digital health feedback system provider, raised $45M to make it the largest recipient of funding. lifeIMAGE, a network for securely sharing medical images and related health information, raised the second highest amount in the second quarter when it closed a $35.6M Series C round. Blue Health Intelligence, a healthcare data and analytics company, raised $35.5M. WorldOne brought in $35M and Watermark Medical, closed out the Top 5 with $32.2M.
A total of 161 investors participated in Q2 2013 including accelerators, incubators and crowdfunding platforms. Eleven investors participated in multiple funding rounds in Q2 2013. Ascension Health Ventures was the most active investor with three deals. The remaining top investors participated in two deals apiece, including: BlueCross BlueShield Venture Partners, AIB Seed Capital Fund, Cardinal Partners, Enterprise Ireland, Galen Partners, Khosla Ventures, Lemhi Ventures, Milestone Venture Partners, New Enterprise Associates, and SV Angel.
Consumer-focused and digital health companies specializing in apps, wearable devices and sensors, remote monitoring, patient engagement, rating/shopping, and social health networks for physician-to-physician, physician-to-patient and patient-to-patient were all prominent this quarter, whereas medical imaging, data analytics and EHR/EMR companies were among the practice-focused technologies that received attention this quarter.
M&A activity in the Healthcare IT sector dropped in Q2 2013 with 30 transactions of which only two were disclosed compared to Q1 2013, with 46 M&A transactions of which only five were disclosed. Health information Management companies attracted the most acquirers with 14 transactions followed by service providers with seven acquisitions and mobile health with three in Q2 2013.
Disclosed Healthcare IT M&A Transaction Chart: http://mercomcapital.com/assets/images/Charts/HIT-Q2-2013/DiscM&AChart.jpg
The two disclosed M&A transactions in Q2 2013, included Jawbone, which acquired BodyMedia, for more than $100M and Instem, which acquired Logos Holdings, along with its subsidiaries Logos EDC Solutions and Logos Technologies, for $7.7M.
To learn more about the report, visit: Healthcare IT Q2 2013 Funding and M&A Report.
About Mercom Capital Group
Mercom Capital Group, llc, is a global communications and consulting firm focused on Healthcare IT, cleantech and financial communications. Mercom delivers market intelligence and funding an M&A reports covering Healthcare IT and advises companies on new market entry, custom market intelligence and strategic decision-making. Mercom's communications division helps companies and financial institutions build powerful relationships with media, analysts, local communities, and strategic partners. About Mercom: http://www.mercomcapital.com. Mercom's Healthcare IT reports: http://store.mercom.mercomcapital.com/products-page/healthcare-it-reports/
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