Population Health, Analytics, mHealth Vendors Raise $1.8B In Q2

Jennifer Bresnick | EHR Intelligence | July 22, 2014

Health IT vendors have been raking in the dough at record levels, Mercom Capital says in a new report, charting the booming industry’s first $1 billion quarter in venture capital (VC) funding and smashing totals from the entirety of 2013.  Population health management, clinical analytics, mHealth, and practice management companies were among the most popular with investors, who see ample opportunity for health IT products to supplement EHRs, improve patient outcomes, and address operational gaps in struggling healthcare organizations.

“It was a quarter of several milestones. It was the first billion dollar fundraising quarter for the healthcare IT sector which has now raised almost $7 billion in venture funding since 2010. Merger and acquisition (M&A) deals were also at their highest levels this quarter, while mobile health companies continued to outraise other technologies,” said Raj Prabhu, CEO and Co-Founder of Mercom Capital Group.

The $2.6 billion raised by health IT companies this year has already outstripped last year’s total of $2.2 billion says the report.  In the second quarter, ten deals were worth more than $50 million each, with practice management companies scooping up 61% of all VC investment.  Eight practice management deals totaled $220 million, while data analytics vendors snagged $204 million in nine deals and four population health management deals produced $144 million...