Consumer-focused companies gain more attention
Capital Group, llc, a global communications and consulting firm, released its
report on funding and mergers and acquisitions (M&A) activity for the Healthcare
IT (HIT) sector during the first quarter of 2013.
Venture capital (VC) funding in the HIT sector
continued to gain momentum in another record quarter with $493 million raised. There
were 104 funding deals in this quarter compared to 51 in the previous quarter. There
were also 42 early stage deals this quarter compared to 14 in Q4 2012.
trend we began to see last year of VCs investing in consumer-focused companies
like mobile health, telehealth, personal health, social health, and scheduling,
rating & shopping has become much more pronounced,” commented Raj Prabhu, CEO
of Mercom Capital Group. “The enormous market opportunity in consumer-focused
health has appeared to pique the interest of investors and is likely to
continue to grow as witnessed by the surge in VC activity.”
Top 5 VC funding deals in Q1 2013 was led by the $41 million raise by Health
Catalyst, a provider of healthcare data warehousing. That was followed by $40
million raised by xG Health Solutions, a spinoff of Geisinger Health System
that offers population health data analytics and patient and population-focused
care management. NantHealth, a company focused on delivering next-generation
care through the use of advanced secure fiber networks, cloud computing and
wireless mobile technology, raised $31 million. Rounding out the Top 5 was Fitbit,
a fitness and health tracker company, and One Medical Group, a provider of
online primary care services, which both raised $30 million.
investors participated in deals in the first quarter of 2013 with ten investors
involved in multiple funding rounds. Investors with multiple rounds included: Blueprint
Health, Google Ventures, Maverick Capital, Merck Global Health Innovation (GHI)
Fund, Nike+ Accelerator, Norwest Venture Partners, Oak Investment Partners,
Psilos Group, The Social+Capital Partnership and Y Combinator.
were 46 M&A transactions this quarter. Health Information Management (HIM)
companies attracted the most acquirers with 22 transactions, followed closely
by service providers with 11 acquisitions. The largest disclosed transaction
was athenahealth’s acquisition of Epocrates, a mobile health company developing
point-of-care medical applications, for $293 million, followed by Allscripts’ acquisition of dbMotion, an
Israeli developer of a service oriented architecture-based interoperability
platform that enables healthcare organizations and health information exchanges
(HIE) to integrate and leverage their information assets, for $235 million, followed
by JLL Partners’ acquisition of BioClinica, a provider of clinical trial
management solutions, for $123 million.
learn more about the report, visit: Healthcare IT Q1 2013 Funding and M&A Report
About Mercom Capital Group
Capital Group, llc, is a global communications and consulting firm focused on healthcare
information technology (HIT), cleantech and financial communications. Mercom
delivers highly-respected industry market intelligence reports covering HIT,
solar energy, wind energy and smart grid. Our reports provide timely industry
happenings and ahead-of-the-curve analysis specifically for C-level decision
making. Mercom’s consulting division advises companies on new market entry,
custom market intelligence and overall strategic decision-making. Mercom’s
communications division helps companies and financial institutions build
powerful relationships with media, analysts, government decision makers, local
communities and strategic partners. For more information about Mercom Capital
Group, visit: http://www.mercomcapital.com.
To get a copy of Mercom’s popular market intelligence reports, visit: http://mercomcapital.com/market_intelligence.php.
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