New Delhi, January 19, 2017: (UNI) Venture capital (VC) funding, including private equity and corporate venture capital, in the Healthcare IT sector came in at 5.1-billion-dollar in 622 deals in 2016, a new record for the sector.
By comparison, 4.6-billion-dollar was raised in 2015 in 574 deals. Total corporate funding in Health IT companies, including debt and public market financing (plus IPOs), came to 5.6-billion-dollar in 2016, a drop of 30 percent compared to 8 billion dollar in 2015.
According to Raj Prabhu, CEO and Co-founder of Mercom Capital Group, since 2010, the sector has received 18.5-billion-dollar in VC funding in 2,672 deals and almost 7.5-billion-dollar in debt and public market financing (including IPOs), bringing the total funding for the sector to 26-billion-dollar.
”Venture Capital funding bounced back after declining in 2015 whereas Digital Health public companies on the other hand continue to struggle,” commented Mr Prabhu.
According to the report consumer-centric companies brought in about 3.5-billion-dollar in 437 deals in 2016, up from 3.1-billion-dollar in 403 deals in 2015. Practice-centric companies raised more than 1.6-billion-dollar in 185 deals in 2016, slightly up from the 1.5-billion-dollar raised in 171 deals in 2015.
Top funded areas in 2016 included Mobile Apps, which received almost 1.3-billion-dollar, Wearable Sensors with 592-million-dollar, Data Analytics with 574-million-dollar, Telemedicine companies with 528-million-dollar, Mobile Wireless companies with 228-million-dollar, and Wellness with 218-million-dollar.
A total of 1,115 investors (including accelerators/incubators) participated in VC funding rounds in Healthcare IT companies in 2016 compared to 923 in 2015. The top VC investors in 2016 were Khosla Ventures with seven deals followed by GE Ventures, Social Capital, and BlueCross BlueShield Venture Partners with six deals each. – United News of India
