Healthcare-IT gets $1.2 bn VC funding in Q2: Mercom

Venture capital funding in the healthcare-IT sector surged over 53 per cent to USD 1.2 billion globally in the second quarter this year over the preceding three months, says a report.
According to global communications and consulting firm Mercom Capital Group, VC funding in the sector was USD 784 million in the first quarter.
However, the number of deals declined to 138 during April-June 2015 from 142 transactions in January-March 2015.
Moreover, debt and public market financing in the sector rose to USD 1.6 billion in eight deals including four IPOs, bringing the total corporate funding raised in the sector for Q2 2015 to USD 2.8 billion.

VC funding has reached almost USD 2 billion in the first half of 2015, compared to USD 2.6 billion during the same period of 2014.
"In the healthcare-IT sector, companies raised more money through IPOs than venture capital this quarter," Mercom Capital Group CEO and Co-Founder Raj Prabhu said.

Sector-wise, healthcare practice-centric companies raised USD 473 million in 41 deals compared to USD 347 million in 44 deals in the first quarter of 2015.
Consumer-centric companies raised USD 724 million in 97 deals this quarter compared to USD 437 million in 98 deals in January-March 2015.
"This quarter Telehealth, Personal Health/Wellness, and Rating and Comparison Shopping companies all had their best fund raising quarter, while funding into Mobile Health and Apps dropped," Prabhu added.

There were 53 M&A transactions in the health-IT sector this quarter compared to 56 deals in Q1 2015.