Health IT Attracts Venture Capital

Health IT companies raised $293 million in global venture capital from 61 investors in the second quarter of this year, according to a report released Monday by Mercom Capital Group. Both the amount raised and the 28 deals recorded during the quarter were the most recorded since 2010, Mercom says in a news release announcing its findings.

Health information management companies raised $247 million of the $293 million total and accounted for 19 of the 28 deals, according to the release. Telemedicine companies closed three deals worth $19 million, while personal health record companies raised $16 million in four deals.

In the biggest deal, San Francisco-based Castlight Health raised $100 million from T. Rowe Price, Redmile Group, Morgan Stanley, Wellcome Trust, U.S. Venture Partners, Maverick Capital, Oak Investment Partners, Venrock and Cleveland Clinic, according to Mercom. Last year Castlight was named No. 1 on the Wall Street Journal’s “Top 50 Venture-Backed Companies,” according to the company’s website. The average venture-capital deal was worth $10.5 million...