AUSTIN, TX--(Marketwired - Oct 17, 2017) - Mercom 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 third quarter (Q3) and first nine months (9M) of 2017. Mercom's comprehensive report covers deals of all sizes from across the globe.
Global VC funding in 9M2017 increased 31 percent year-over-year (YoY) with $5.5 billion (B) in 586 deals versus $4.2B in 463 deals in 9M2016. Q32017 VC funding was $1.5B in 227 deals, down 38 percent from the record $2.4B in 194 deals in Q22017.
Digital Health has received $24B in 3,258 VC funding deals Mercom's tracked since 2010.
Total corporate funding in Health IT -- including VC, debt, and public market financing -- was $1.7B in Q32017 versus Q22017's $2.4B.
Healthcare IT VC Funding: 9M2013-9M2017 and Q32016-Q32017
"The record breaking funding year continues for digital health companies. The 227 funding deals in Q3 was the most ever for a single quarter. The third quarter was all about Data Analytics with those companies garnering almost a third of the funding in Q3 and artificial intelligence companies receiving more than $200 million," commented Raj Prabhu, CEO and Co-Founder of Mercom Capital Group.
Top categories 9M2017: Data Analytics $1B, Patient Engagement Solutions $686 million (M), mHealth Apps $549M, Telemedicine $529M, Booking $407M, and Mobile Wireless $407M.
Top-Funded Healthcare IT Categories 9M2017
Top categories Q32017: Data Analytics $554M, Telemedicine $232M, mHealth Apps $150M, and Mobile Wireless $132M.
Top Health IT Categories Q32017
Top VC deals Q32017: $165M WuXi Nextcode, $75M M2Gen, $70M Tempus, $37M AbleTo, and $34M HealthEdge.
Top VC Funding Deals in Q3 2017
401 investors (including seven accelerators/incubators) participated in Q32017 funding versus 454 investors in Q22017 (two accelerators/incubators).
Twenty-six countries recorded VC funding in Q32017.
In 9M 2017 there were 146 Digital Health M&A transactions; 9M2016 had 163.
Notable M&A transactions Q32017: WebMD's $2.8B acquisition by Internet Brands; the healthcare technology and consulting business of Advisory Board Company by Optum for $1.3B; Konica Minolta's acquisition of Ambry Genetics Corporation for $1B; Navicure acquired ZirMed for $750M; FNFV Group acquired T-System for $200M; Allscripts acquired McKesson's EHR and revenue cycle tools for $185M.
Top Health IT M&A Transactions Q3 2017
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This report covered 738 investors and companies.
Mercom Capital Group
Mercom Capital Group is a global communications and research firm focused on healthcare information technology, cleantech and financial communications. Mercom advises companies on new market entry, custom market intelligence and strategic decision-making. Visit: www.mercomcapital.com. To get our market intelligence reports, visit: www.mercomcapital.com/market_intelligence.php.