AUSTIN, TX--(Marketwired - Jul 18, 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 second quarter (Q2) and first half (1H) of 2017. Mercom's comprehensive report covers deals of all sizes from across the globe.
Global VC funding for Health IT companies in 1H2017 was 36 percent higher year-over-year (YoY) with a record $4 billion (B) raised in 359 deals versus the $3B raised from 286 deals in 1H2016. Q22017 VC funding also was a record, increasing 47 percent to $2.4B in 194 deals versus the $1.6B raised in 165 deals in Q12017.
Digital Health has surpassed $22.5B in the 3,031 VC funding deals Mercom has tracked since 2010.
Total corporate funding in Health IT companies -- including VC, debt, and public market financing -- came to $2.4B in Q22017 versus $1.8B in Q12017.
Healthcare IT VC Funding 1H2016-1H2017
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Healthcare IT VC Funding Q22016-Q22017
"This was the best half and best quarter ever for digital health companies as a result of a few very large deals. We are now comfortably on pace to have the biggest funding year for digital health companies," commented Raj Prabhu, CEO and Co-Founder of Mercom Capital Group. "Even with such robust funding, there is still no sign of any digital health IPOs and M&A activity is yet to catch up to the funding momentum."
Top categories 1H2017: Patient Engagement Solutions $684 million (M), Data Analytics $458M, mHealth Apps $399M, Booking $391M, Telemedicine $297M, Mobile Wireless $275M, Electronic Medical Records $237M.
Top-Funded Healthcare IT Categories 1H2017
Top Health IT Categories Q2 2017
Top VC deals Q22017: $500M Outcome Health, $231M Modernizing Medicine, $140M PatientPoint, $90M Blink Health, $75M WuXi Nextcode, $70M ClassPass.
454 investors (including two accelerators/incubators) participated in Q22017 funding versus 309 in Q12017 (four accelerators/incubators).
Twenty-five countries recorded VC funding in Q22017.
In 1H 2017, there were a total of 90 Healthcare IT M&A transactions, versus 110 in 1H 2016.
Prominent M&A transactions Q22017: Best Doctors for $440M by Teladoc, Cochlear's of Sycle for $78M, athenahealth's of Praxify Technologies for $63M, Entrada by NextGen Healthcare for $34M.
Top Health IT M&A Transactions Q22017
This report covered 732 investors and companies.
About 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.