VC deals in global healthcare IT doubled in June quarter

Companies raised $1.8 bn in the June quarter compared with $861 mn in the March quarter, says Mercom Capital


The report covers VC, mergers and acquisition, debt and equity deals of all sizes in healthcare IT across the globe. Photo: Bloomberg
The report covers VC, mergers and acquisition, debt and equity deals of all sizes in healthcare IT across the globe. Photo: Bloomberg

Mumbai: Venture capital (VC) investments in the global healthcare information technology (IT) sector more than doubled in the June quarter from the preceding three months.

Companies raised $1.8 billion in the three months ended 30 June compared with $861 million raised in the March quarter. Ten of the 161 transactions were worth more than $50 million each, according to a Mercom Capital Group Llc report released on Thursday. The report covers VC, mergers and acquisition, debt and equity deals of all sizes in healthcare IT across the globe.

The $2.6 billion VC funds raised so far this year has already exceeded the $2.2 billion raised in all of 2013. There were 263 investors that participated in these funding rounds, with 58 angel investors including some well-known celebrities and entrepreneurs. The quarter also included 30 corporate venture capitalists, the report said.

“It was a quarter of several milestones,” Raj Prabhu, chief executive officer and co-founder of Mercom Capital Group, said in a note.

It was the first billion dollar fundraising quarter for the healthcare IT sector which has now raised almost $7 billion in venture funding since 2010, he said. ​

There were 38 early-stage deals under $2 million in the June quarter. The top VC funding deals over $100 million in this period included the $135 million raised by NantHealth Llc, a cloud-based healthcare IT company delivering care through a single integrated clinical platform, from the sovereign wealth fund, Kuwait Investment Authority and BlackBerry Ltd; the $130 million raised by Flatiron Health, a developer of a cloud-based business and clinical intelligence oncology data platform, from Google Ventures, First Round Capital and Laboratory Corp. of America Holdings; the $125 million raised by Alignment Healthcare, a provider of population health management solutions, from General Atlantic Llc, and the $120 million raise by Proteus Digital Health, a developer of products and services integrating medicines with ingestible sensors, wearable sensors, mobile and cloud computing, from undisclosed institutional investors in the US, Europe and Asia.

Out of the $1.8 billion total deals, US companies alone raised $1.6 billion through 140 deals. Thirteen other countries recorded at least one deal.

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