Capital Group, llc, a global communications and consulting firm, released its annual
on funding and mergers and acquisition
(M&A) activity for the Healthcare Information Technology (IT) sector in 2013.
capital (VC) funding in the Healthcare IT sector almost doubled in 2013,
totaling $2.2 billion in 571 deals compared to $1.2 billion in 163 deals in 2012.
The deal count included 139 accelerator and incubator deals. The sector also
raised $648 million in debt and public market financings, bringing total
corporate funding raised by the sector in 2013 to almost $3 billion. VC funding
dropped in Q4 2013 with $337 million in 147 deals compared to $737 million in
151 deals in Q3.
record fundraising totals in 2013, Healthcare IT companies have now received $4
billion in venture funding since 2010,” said Raj Prabhu, CEO and Co-Founder of Mercom
Capital Group. “Mobile health companies led the way in 2013 as the technology
transformation of the healthcare industry continues.”
in 2013, consumer-centric companies raised $1.1 billion. Mobile Health
companies were the largest recipient of VC funding, raising $564 million.
Personal Health companies received $198 million and Social Health companies
brought in $166 million.
companies also raised $1.1 billion in 2013. Areas that received the most
funding under this category were Population Health with $179 million, Electronic
Medical Record/Electronic Health Record (EMR/EHR) with $166 million and
Practice Management with $162 million.
Top 5 VC funded companies in 2013 were: Evolent Health, a population health
management services organization that integrates technology, tools and
on-the-ground resources to support health systems in executing their population
health and care transformation objectives, which raised $100 million; Practice
Fusion, a web-based EMR provider, which raised $85 million in two deals; Fitbit,
a fitness and health tracker company, which brought in $73 million – also in
two deals; MedSynergies, a provider of revenue and performance management
solutions to healthcare providers, which raised $65 million; and Proteus
Digital Health, a provider of a digital health feedback system, which raised
were 466 investors involved in funding rounds for Healthcare IT companies in
2013. The top VC investors were Khosla Ventures and The Social+Capital
Partnership with eight deals each, followed by Norwest Venture Partners with
seven deals, and Kleiner Perkins Caufield & Byers with six deals.
Within the United States, California led Healthcare IT fundraising with 142 deals followed by Massachusetts and New York with 39 deals each, Tennessee with 30 and Texas with 29. A total of 44 states had at least one deal apiece in 2013.
activity in the Healthcare IT sector remained flat in 2013, with 165
transactions compared to 163 transactions in 2012. There were 44 M&A transactions
in Q4 2013. There were 16 companies that made multiple acquisitions in 2013.
Information Management (HIM) companies saw the most M&A activity in 2013
with 76 transactions, followed by Revenue Cycle Management companies with 25.
Top 5 disclosed M&A transactions included the $850 million acquisition of Passport
Health Communications, a provider of technology solutions and services that
help hospitals and healthcare organizations streamline business operations and
secure payment for their services, by
Experian, a global information services company; the acquisition of Greenway
Medical Technologies, a Revenue Cycle Management and EHR company by Vitera
Healthcare Solutions, a provider of EHR and practice management software, for $644
million; athenahealth’s $293 million acquisition of Epocrates, a developer of a
medical application for clinical content, practice tools, and health industry
engagement at the point of care; Allscripts’ $235 million acquisition of
dbMotion, a developer of a data normalization platform for multiple electronic
health records; Zotec Partners’ $200 million acquisition of Medical Management
Professionals, a medical billing and practice management company; and
Medtronic’s $200 million acquisition of Cardiocom, a provider of integrated
clinical telehealth services.
were two Healthcare IT IPOs in 2013, raising a combined total of $195 million.
Benefitfocus, a provider of cloud-based benefits software, raised $131 million,
and Covisint, provider of a cloud engagement platform for creating and enabling
new mission-critical external business processes, raised $64 million.
learn more about the report, visit: http://store.mercom.mercomcapital.com/products-page/healthcare-it-reports/hit-2013-annual-and-q4-funding-report/.
Note: Release updated February 10, 2014.
Companies in Q4 and
Annual 2013 HIT Report: @Point of Care360, 1EQ, 360Fresh, 3P Capital,
6SensorLabs, 7signal, ABC Medical Management, Aboutne, ABPathfinder, Accelera
Innovations, ActiveCare, Acuo Technologies, Acupera, Acute FDS Oy, AdhereTech,
The Advisory Board Company, Afoundria, AHPGI, Allscripts, Almost Family,
Alternate Technologies, AMN Healthcare, ApeniMED, Apex, Appature, ArborMetrix,
Arch Advantage, Arseus, athenahealth, Athos, Authentidate Holding, Avado, AviaraMD,
Basis Science, Behavioral Health Care Associates, Benefitfocus, BetterDoctor,
BioClinica, Biosign Technologies, BodBot, BodyMedia, Brain Parade, BrainAid,
Breathometer, Brighter, Business & Legal Resources, Camber Health Partners,
Cardiocom, Care Team Connect, CareLinx, CareSolver, CareStarter, Catalyze.io,
Cisiv, Claimsnet.com, ClaimSync, ClariDIS Corporation, Clarity Health Services,
ClearDATA, Clinical Ink, CM Information Specialists, CoachUp, CoheroHealth,
ColdLight Solutions, CommuniCare Technology, CoPatient, CoreLab Partners,
Covisint, Cureatr, CureMD, Cylliance, Dabo Health, DailyFeats, dbMotion,
Definitive Homecare Solutions, Dental Cloud 9, Diagnosia, Diversinet, DMH
International, docBeat, Doctor On Demand, Duet Health, Earndit, eCaring, EchoPixel,
Edamam, Emids, Enthrive, Entrada, Envision Pharmaceutical, Epocrates, Error Tec, Experian, Fastrack
Healthcare Systems, FertilityAuthority, Fibroblast, Figure 1, Fitmoo,
Fluential, FOCUS: TRAINR, GAIN Fitness, GenKey, GNS Healthcare, Greengage Mobile,
Greenway Medical Technologies, GymPact, HCPro and HealthLeaders, Health Access
Solutions, Health Elements, Health Integrated, Health Options Worldwide, Health
Revenue Assurance Holdings, Health Systems International, Health: ELT,
HealthEdge Software, HealthFleet, HealthGuru, HealthLoop, ealthPort,
Healthrageous, Healthsense, Hearst Corporation, HighFive Mobile, Higi, HITS
Consulting Group, HLM Venture Partners, Homecare Homebase, Humana, IBL Internet
Business Logic, iKure Techsoft, iMedicor, iMedX, Imperium Health Management,
IMS Health, Incential Software, IncentOne, Inofile, INSPIRE, IOD Incorporated,
Iodine, iPenMD Solution, iSonea, iVantage Health Analytics, Jardogs, Jawbone,
JLL Partners, Kai Medical, KidsLink, Kindara, Kinematix, Kitara Media, Kyron,
LabStyle Innovations, Laker Software, Lark Technologies, Learn It Live,
Lexmark, Life2, LifeNexus, Lift Hero, Lively, Logibec, LOGICARE Corporation,
Ludi, Luminate Health, MapMyFitness, Massive Health, Maxwell Health, Meal
Metrics, Medibis, Medical Management Professionals, Medical Referral Source
Medicast, Medi-Data Service Mediware,
MedSave USA, MEDSEEK, MedTech National, Medtronic, MeraDoctor, Merge
Healthcare, Misfit, Moelis Capital Partners, MyHealthDirect, NeuroSky,
Nexercise, NexTech Systems, Nightingale Apps, Nutrivise, OmniComm System,
OmniSYS, Ondello, Opargo, OpenPlacement, Opternative, Ovuline, Owlet Baby Care,
PACSGEAR, PadInMotion, Parallon, Passport Health Communications,
PatientConnecter, PatientPoint, PeoplePoint Software, Performance 3D, PHRQL,
PointClear Solutions, PointClickCare, Practice Fusion, PracticeMax, Prevently,
Procura, Professional Data Services, Promasys, ProNex, Publicis Groupe,
PulseOn, Purple Binder, Pygargus, Qardio, QHR Corporation, QoL Qualaris,
Healthcare Solutions, Qualia Health, Quietyme, Qview Medical, Race Yourself,
ReaEvolution, ReDoc, Respondesign, Rest Devices, Retrofit ,RightCare Solutions,
Ring.MD, RxApps, Scanadu, Screenetics, Seamless Medical Systems, Semantelli
Corporation, Sense Health, Sessions, ShapeUp, Shareable Ink, Shiftwise, Simple
Admit, SimplyInsured, Skylight Healthcare, Sleep Evolution, Soundhawk, SSI
Group, Station X, STEP SUCCESS, SymphonyCare, Tech4Health, TedCas, The Advisory
Board Company, The Outsource Group, The Reclaim Group, The Wellness Network,
Touch Medical Solutions, Triage Now, Trident Capital, Ultrasis, Under Armour,
Validic, Vatica Health, Verilogue,
VGBio, Virtual Physicians Network, Vision Consulting, Vital Connect,
Vitec Software, Vitera Healthcare Solutions, WebMD Health, Wellbe.me, WellDoc,
Wellfount, WellnessFX, WellRight, WellTok, WelVU, WestView Capital Partners,
Wildflower Health, Willowglade Technologies, Worry Free Labs, Xylem Consulting,
Yingo Yango, ZoomMed, Zotec Partners