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

NEW DELHI: Venture capital funding in the healthcare-IT sector surged over 53 per cent to $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 $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 $1.6 billion in eight deals including four IPOs, bringing the total corporate funding raised in the sector for Q2 2015 to $2.8 billion.

VC funding has reached almost $2 billion in the first half of 2015, compared to $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 $473 million in 41 deals compared to $347 million in 44 deals in the first quarter of 2015.

Consumer-centric companies raised $724 million in 97 deals this quarter compared to $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.