mHealth, Data Analytics See $4.7 Billion In 2014 VC Funding

The past year saw a $4.7 billion investment in healthcare IT companies, according to a report from Mercom Capital Group, as venture capital firms seek to promote lucrative technologies in the practice-facing and consumer-facing markets.  Data analytics, population health management, and clinical decision support products were among the most likely to grab investor attention in 2014, while mHealth, telehealth, and wearable technologies saw $2.3 billion in major deals.

“The Healthcare IT sector had another phenomenal fundraising year. In the five years since we started tracking funding data, the sector has raised $8.8B in VC funding and another $3.6B in public market and debt financings bringing the total to $12.4B – largely driven by the HITECH and Affordable Care Act,” said Raj Prabhu, CEO and Co-Founder of Mercom Capital Group. “However, the enthusiasm in the sector shown by the VC community was not quite matched by the public markets when you look at market performance of companies that went the IPO route in 2014.”

Technology intended for use in healthcare organizations accounted for $2.4 billion of the investments.  Clinical decision support companies scooped up $517 million, while the data analytics segment trailed with $367 million and population health management brought up the rear with $247 million in funding.  mHealth scored the most money from investors, with $1.2 billion in capital, representing a staggering 341% year over year growth rate.  Telehealth brought in $369 million, while healthcare rating and comparison tools raised $288 million...