Healthcare-IT sector gets $784 mn VC funding in Q1: Mercom

Venture capital funding in the healthcare information technology (IT) sector across the globe dipped 35 percent to USD 784 million in the first quarter of 2015 from the preceding three months, says a report.

According to global communications and consulting firm Mercome Capital Group, VC funding in the sector was USD 1.2 billion in the fourth quarter of 2014. However, the number of deals grew to 142 during January-March 2015 from 134 deals in October-December 2014.

With the latest quarterly figures for 2015, Health IT / Digital Health companies have now raised about USD 10 billion in VC funding since 2010. "Funding fell across the board with the exception of Mobile Health (mHealth), which was the bright spot this quarter. There was also significant M&A activity in the first quarter for mHealth companies," Mercom Capital Group CEO and Co-Founder Raj Prabhu said.

"We have already seen 10 M&A transactions in Q1 compared to 21 in all of last year, which bodes well for exits in Mobile Health," Prabhu added. The top VC funding deal in Health IT sector for Q1 2015 was USD 70 million raised by US-based firm Health Catalyst.