Home / Companies / Start-ups /  Global healthcare tech companies witnessing spurt in funding: report

Hyderabad: Makers of wearable devices and data analytics and telemedicine companies from the global healthcare tech sector are witnessing a spurt in funding, according to a study by Mercom Capital Group, Llc.

The first quarter (January to March) report of the research firm said that there is a 27% rise in the number of venture capital and private equity deals against the fourth quarter of 2015 (Q4 2015).

Funding—venture capital, private equity and corporate venture capital—in digital health and healthcare IT sectors across the world stood at $1.4 billion in 146 deals, which was $1.1 billion in 145 deals in Q4 2015.

On an yearly basis, the number of deals went up by 74%. Total corporate funding raised in the sector, including debt and public market financing, for Q1 2016 was $1.5 billion, the research report released on Monday said.

“The health IT sector is off to an impressive start this year with significant funding activity in the first quarter led by wearables, data analytics and telemedicine. Data analytics and telemedicine companies reached a significant milestone, each crossing $1 billion in funding raised to date. Health IT public companies, meanwhile, continued to underperform," said Raj Prabhu, chief executive and co-founder of Mercom Capital Group.

Back home in India, the first quarter saw healthcare apps attract most of the funding.

Child health and wellness app BabyBerry raised $1 million angel funding; Healthenablr, an app for booking doctor appointments, raised $800,000 seed funding; Lovecycles, a menstrual and psychological health-tracking app raised $741,000; Touchkin, a predictive personalized care app, raised $400,000 in seed funding, among other healthcare tech companies.

Globally, the top-funded areas in the first quarter were wearables and sensors with $260 million, data analytics companies with $197 million, telemedicine with $171 million, mHealth apps with $120 million, and consumer health information and education with $100 million.

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