New Delhi: Mercom Capital Group, a global communications and research firm has released its report on funding and mergers and acquisitions (M&A) activity for the Healthcare Information Technology (IT) sector for the first quarter of 2016.
As per Mercom report, the venture capital (VC) funding, including private equity and corporate venture capital, in the Health IT sector increased 27 percent quarter over quarter, coming in at $1.4 billion in 146 deals compared to $1.1 billion in 145 deals in Q4 2015; it was also up 74 percent compared to the same quarter of last year.
Total corporate funding raised in the sector including VC, Debt and Public Market Financing for Q1 2016 came to $1.5 billion.
“The Health IT sector is off to an impressive start this year with significant funding activity in the first quarter led by wearables, data analytics and telemedicine. Data analytics and telemedicine companies reached a significant milestone, each crossing $1 billion in funding raised to date. Health IT public companies, meanwhile, continued to underperform,” commented Raj Prabhu, CEO and Co-Founder of Mercom Capital Group.
Healthcare practice-centric companies received 42 percent of the funding in Q1 2016, raising $569 million in 49 deals compared to $360 million in 44 deals in Q4 2015. Consumer-centric companies received 58 percent of the funding this quarter, bringing in $796 million in 97 deals compared to $711 million in 101 deals in Q4 2015.