Healthcare IT/Digital Health funding in 1H
2016 reaches almost $3 billion
Capital Group, llc, a global communications and research firm, released its report
on funding and mergers and acquisitions (M&A) activity for the Healthcare
Information Technology (IT) / Digital Health sector for the second quarter of
2016. Mercom’s comprehensive report covers deals of all sizes across the globe.
To learn more about the report, visit:
Venture capital (VC) funding in the Health IT sector, including private equity and corporate venture capital, came in at $1.6 billion in 140 deals in the second quarter of 2016 compared to $1.4 billion in 146 deals in Q1 2016; it was also up 33
percent compared to the same quarter of last year. So far in the first half of
2016, close to $3 billion has been raised in 286 deals, a 50 percent increase
compared to nearly $2 billion raised during the same period in 2015.
big reason for the jump in VC funding was record fundraising by Chinese
companies. This is the first time since 2010 that Health IT companies in the U.S. have been outraised by other countries.,” said Raj Prabhu, CEO and Co-Founder of Mercom Capital Group. “This quarter is likely an outlier, but it is also a sign that investors and companies should pay close attention to Digital Health markets around the world.”
Funding for U.S. companies fell by almost 37 percent QoQ and Chinese companies
for the first time emerged as the top Healthcare IT funding recipients.
Total corporate funding raised in the sector (including VC, Debt, Public Market Financing, and IPOs) for Q2 2016 totaled $1.7 billion compared to $1.5 billion in the previous quarter. There was one IPO by NantHealth for $91 million.
consumer-centric companies raised more than $1.2 billion in 95 deals,
accounting for 77 percent of the total $1.6 billion raised in Q2 2016 compared
to $796 million in 97 deals in Q1 2016. Healthcare practice-centric companies received
23 percent of the funding in the second quarter of 2016 with $360 million in 45
deals, a 36 percent drop compared to the $569 million raised in 49 deals in Q1
top funded areas in Q2 were mHealth apps with $779 million, Data Analytics
companies with $234 million, Wearables and Sensors with $129 million, Mobile Wireless with $75 million and Wellness with $60 million.
There were 43 early-stage
deals at or below $2 million, including 12 accelerator and incubator deals.
Ping An Good Doctor raised $500
million and Chunyu Yisheng secured $183 million in VC funding in Q2 2016. Centauri Health Solutions, Codoon, and Proteus Digital Health each raised $50 million.
total of 282 investors, including three
accelerators/incubators, participated in Healthcare IT deals in the second quarter of 2016, with 20 investors participating in multiple rounds.
Khosla Ventures was involved in four deals.
Healthcare IT VC funding
in the second quarter of 2016 originated from 12 countries worldwide. China
topped the list bringing in $733 million in three deals, accounting for 46
percent of total funding. Funding fell sharply in the United States by
almost 40 percent quarter-over-quarter; this was the lowest funding quarter for
American Health IT companies since Q1 2015.
were 53 M&A transactions (seven disclosed) involving Healthcare IT
companies in the second quarter of 2016, compared to 58 transactions (nine
disclosed) in Q1 2016. M&A activity
was led by Data Analytics, with six deals, Rating and Comparison Shopping and EHR/EMR
companies with five deals apiece, Health Information Exchange companies with
four, followed by Mobile Health, Telehealth, and Population Management
companies with three each.
top disclosed M&A transactions in Q2 2016 included Veritas Capital’s acquisition of
Verisk Analytics' healthcare services business for $820 million; MedData’s
acquisition of Cardon Outreach for $400 million; Nokia acquiring Withings for
$191 million and Teladoc’s acquisition of HealthiestYou for $125 million.
Analytics and mHealth Apps were involved in the most M&A deals in the first
half of 2016 with 11 each.
There are a total of 549 companies
and investors covered in this report.
Mercom’s comprehensive report covers deals of all
sizes across the globe. Our report does not include bioinformatics or medical
To learn more about the report, visit:
About Mercom Capital Group
Mercom Capital Group,
llc, is a global communications and consulting firm focused on healthcare
information technology, cleantech and financial communications. Mercom
delivers highly respected industry market intelligence reports covering Health
IT/Digital Health, Solar Energy, and Smart Grid, Battery Storage & Efficiency. 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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