Info-tech

VCs invest $1.6 billion in healthcare IT firms in Q2

OUR BUREAU New Delhi | Updated on January 17, 2018 Published on July 21, 2016

BL22_IT_FOREX

A total of 12 Indian companies received funding of over $26.3 million during the second quarter of calendar year 2016, making it the largest venture capital funding quarter in the healthcare information technology space since 2010, according to data from Mercom Capital Group, a global communications and research firm.

The firm released its report on funding and mergers and acquisitions (M&A) activity for the Healthcare IT / Digital Health sector for the second quarter of 2016 on Thursday.

The 12 companies that raised funds during the quarter were 1mg, HealthifyMe, DocsApp, YourDost, Sminq India Solutions, Integrated Child Health Records (iCHR), My Senior Doctor, ThingsMeet, PurpleHealth, iCliniq, Parentlane, and Visit.

“The big reason for the jump in VC funding was a record fund-raising by Chinese companies. This is the first time since 2010 that health IT companies in the US have been outraised by other countries,” said Raj Prabhu, CEO and Co-Founder of Mercom Capital Group.

Global VC funding, including private equity and corporate venture capital, in the health IT sector came in at $1.6 billion in 140 deals this quarter, 33 per cent higher than the same quarter in 2015.

Total corporate funding, including VC, debt, public market financing and IPOs, grew by 13 per cent during the quarter to $1.7 billion from $1.5 billion in the previous quarter.

Globally, healthcare consumer-centric companies raised more than $1.2 billion in 95 deals, accounting for 77 per cent of the total $1.7 billion raised in second quarter.

Published on July 21, 2016
This article is closed for comments.
Please Email the Editor