Medical Design and Outsourcing

  • Home
  • Medical Device Business
    • Mergers & Acquisitions
    • Financial
    • Regulatory
  • Applications
    • Cardiovascular
    • Devices
    • Imaging
    • Implantables
    • Medical Equipment
    • Orthopedic
    • Surgical
  • Technologies
    • Contract Manufacturing
    • Components
    • Electronics
    • Extrusions
    • Materials
    • Motion Control
    • Prototyping
    • Pumps
    • Tubing
  • Med Tech Resources
    • DeviceTalks Tuesdays
    • Digital Editions
    • eBooks
    • Manufacturer Search
    • Medical Device Handbook
    • MedTech 100 Index
    • Podcasts
    • Print Subscription
    • The Big 100
    • Webinars / Digital Events
    • Whitepapers
    • Video
  • 2022 Leadership in MedTech
    • 2022 Leadership Voting!
    • 2021 Winners
    • 2020 Winners
  • Women in Medtech

Healthcare IT VC funding reaches $1.25 billion in Q3 2016 reports Mercom Capital Group

October 21, 2016 By Abigail Esposito

Mercom Capital Group

Mercom Capital Group released its report on funding M&A activity for the Healthcare IT/Digital Health sector for the third quarter of 2016.

Mercom Capital Group, a global communications and research firm, released its report on funding and mergers and acquisitions (M&A) activity for the Healthcare Information Technology (IT)/Digital Health sector for the third quarter of 2016. Mercom’s comprehensive report covers deals of all sizes across the globe.

Venture capital (VC) funding in the Health IT sector, including private equity and corporate venture capital, totaled $1.25 billion in 177 deals in Q3 2016 compared to $1.6 billion in 140 deals in Q2 2016. So far this year, more than $4.2 billion has been raised in 463 deals, well north of the $3.6 billion raised during the same period in 2015.

“International funding deals continue to be strong, especially in China boosting overall totals,” said Raj Prabhu, CEO and co-founder of Mercom Capital Group. “2016 is on pace to be the best fundraising year for the sector.”

There were 118 VC funding deals involving U.S. companies in Q3 2016 and 59 deals with companies from other countries around the world. In Q2 2016, 108 VC funding deals were recorded in the U.S. and 32 in the rest of the world.

There were 87 deals that were $2 million or below, including 47 Accelerator/Incubator deals in the third quarter of 2016. This is a significant increase from Q2 2016 when there were just 43 deals that totaled $2 million or below with only 12 Accelerator/Incubator deals.

Healthcare consumer-centric companies raised $851 million in 128 deals, accounting for 68% of the total $1.25 billion raised in Q3 2016 compared to $1.2 billion in 95 deals in Q2 2016. Healthcare practice-centric companies secured 32% of the funding with $404 million in 49 deals, compared to the $360 million raised in 45 deals in Q2 2016.

The top funded areas were mHealth apps with $253 million, Telemedicine companies with $220 million, Practice Management Solutions companies with $82 million, Consulting companies with $77 million, Mobile Wireless with $75 million, Wearables and Sensors with $74 million, Remote Monitoring with $65 million and Payer Solutions companies with $50 million.

The top VC deals for Q3 2016 included: Meet You, provider of a social, health and fertility tracking app for women which raised $151 million; Accolade, developer of a mobile app for professional health concierge services, secured $70 million; Neusoft Xikang Healthcare Technology, provider of a remote health monitoring device for individuals and families, which raised $64 million; ClearCare, provider of an online software platform for the home care industry, secured $60 million; InstaMed, a Healthcare Payments Network that simplifies every healthcare clearinghouse and payment transaction for providers and payers all in one place, raised $50 million; and Specialists On Call, a provider of specialty physician consultations to acute care hospitals through telemedicine, raised $50 million.

A total of 309 investors participated in Healthcare IT deals in Q3 2016 with 13 investors participating in multiple rounds. Bessemer Venture Partners and Canaan Partners were on top with three deals each.

There were 53 M&A transactions (16 disclosed) involving Healthcare IT companies in Q3 2016, compared to the same number of transactions (seven disclosed) the previous quarter. Merger and acquisition activity was led by Mobile Health Apps with eight transactions, Practice Management Solutions companies tallied five, and Data Analytics, Population Health Management and Remote Monitoring companies had four transactions apiece.

The top disclosed M&A transaction was the $2.35 billion acquisition of Press Ganey Associates by EQT Equity fund EQT VII. Other large transactions included: Thoma Bravo which acquired Imprivata for approximately $544 million and took the company private; Atos acquired Anthelio Healthcare Solutions from its shareholders Actis and McLaren Health Care Corporation for an enterprise value of $275 million; Evolent Health’s acquisition of Valence Health for $145 million; Loblaw Companies acquired QHR Corporation for $132 million; and iHealth Labs’ acquisition of eDevice for $106 million.

mHealth Apps and Data Analytics companies have been involved in the most M&A transactions so far in 2016 with 19 and 15 transactions respectively.

There are a total of 595 companies and investors covered in this report.

Mercom’s comprehensive report covers deals of all sizes across the globe. Our report does not include bioinformatics deals.

Mercom Capital Group
mercomcapital.com

Related Articles Read More >

Mojdeh Poul 3M Health Care Business Group President headshot
3M Health Care Business president is leaving this year
A portrait of Dr. Kevin Chung, chief medical officer at SeaStar Medical
Device developer SeaStar Medical hires chief medical officer
A portrait of Henry Schein CEO Stanley Bergman
Henry Schein investors push back on executive pay
Logos of Creo Medical and Intuitive
Creo Medical inks collaboration agreement with Intuitive

DeviceTalks Weekly.

May 20, 2022
DeviceTalks Boston Post-Game – Editors’ Top Moments, Insulet’s Eric Benjamin on future of Omnipod 5
See More >

MDO Digital Edition

Digital Edition

Subscribe to Medical Design & Outsourcing. Bookmark, share and interact with the leading medical design engineering magazine today.

MEDTECH 100 INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.
DeviceTalks

DeviceTalks is a conversation among medical technology leaders. It's events, podcasts, webinars and one-on-one exchanges of ideas & insights.

DeviceTalks

New MedTech Resource

Medical Tubing

Enewsletter Subscriptions

Enewsletter Subscriptions

MassDevice

Mass Device

The Medical Device Business Journal. MassDevice is the leading medical device news business journal telling the stories of the devices that save lives.

Visit Website
MDO ad
Medical Design and Outsourcing
  • MassDevice
  • DeviceTalks
  • MedTech 100 Index
  • Medical Tubing + Extrusion
  • Drug Delivery Business News
  • Drug Discovery & Development
  • Pharmaceutical Processing World
  • R&D World
  • About Us/Contact
  • Advertise With Us
  • Subscribe to Print Magazine
  • Subscribe to E-newsletter
  • Attend our Monthly Webinars
  • Listen to our Weekly Podcasts
  • Join our DeviceTalks Tuesdays Discussion

Copyright © 2022 WTWH Media, LLC. All Rights Reserved. Site Map | Privacy Policy | RSS

Search Medical Design & Outsourcing

  • Home
  • Medical Device Business
    • Mergers & Acquisitions
    • Financial
    • Regulatory
  • Applications
    • Cardiovascular
    • Devices
    • Imaging
    • Implantables
    • Medical Equipment
    • Orthopedic
    • Surgical
  • Technologies
    • Contract Manufacturing
    • Components
    • Electronics
    • Extrusions
    • Materials
    • Motion Control
    • Prototyping
    • Pumps
    • Tubing
  • Med Tech Resources
    • DeviceTalks Tuesdays
    • Digital Editions
    • eBooks
    • Manufacturer Search
    • Medical Device Handbook
    • MedTech 100 Index
    • Podcasts
    • Print Subscription
    • The Big 100
    • Webinars / Digital Events
    • Whitepapers
    • Video
  • 2022 Leadership in MedTech
    • 2022 Leadership Voting!
    • 2021 Winners
    • 2020 Winners
  • Women in Medtech