VC Funding in health care-IT nearly doubles in 2013

There was increase in number of transactions as well, from 163 in 2012 to 571 in 2013

Venture capital funding in the health care-IT sector almost doubled last year to $2.2 billion, from $1.2 billion in 2012, according to Mercom Capital Group.

The global communications and consulting firm said there was an increase in the number of transactions as well. There were 571 deals last year, as against 163 deals in 2012.

"After record fundraising totals in 2013, health care IT companies have now received $4 billion in venture funding since 2010," Mercom Capital Group CEO and Co-Founder Raj Prabhu said.

"Mobile health companies led the way in 2013 as the technology transformation of the healthcare industry continues," he added.

They were the largest recipient of VC funding, raising $564 million, while personal health companies received $198 million and social health companies brought in $166 million.

The M&A activity in the healthcare IT sector remained flat in 2013, with 165 transactions compared to 163 transactions in 2012.

Meanwhile, there were two healthcare IT IPOs in 2013, raising a combined total of $195 million.

Some of the notable Indian transactions in the VC funding category were: Bangalore-based Strand Life Sciences receiving funding from Burrill & Company; e-commerce portal Doctree Health Infoservices raising $500,000; Kolkata based iKure Techsoft receiving an undisclosed amount in angel funding; Chennai based Xcode raising around $170,000 in angel funding; Bangalore-based InterpretOmics raising about $1.7 million in angel funding and Mumbai-based MeraDoctor receiving an investment from Accion through its Venture Lab.

The notable Indian transaction in the M&A category was Secunderabad-based Virinchi Technologies, acquiring a majority stake in the Asclepius Consulting & Technologies, a software solutions provider for mid-size hospitals and nursing homes in India, the report said.