Last year, the health IT industry raised nearly half a billion dollars in venture capital funding, according to a report by communications and consulting firm Mercom Capital Group, Healthcare IT News reports.
Raj Prabhu -- managing partner at Mercom -- said the amount raised last year is significantly higher than the $211 million in health IT venture capital funding raised in 2010.
The report is a combination of Mercom's annual and fourth quarter reports on mergers, acquisitions and funding in the health IT industry in 2011.
Venture Capital Funding Categories
The report looked at venture capital funding for specific health IT sectors and found that:
- Health information management companies raised $336 million through 30 venture capital deals;
- Personal health record providers raised $83.3 million through 12 venture capital deals (Manos, Healthcare IT News, 1/18);
- Telehealth technology providers raised $26.6 million through 2 venture capital deals;
- Mobile health companies raised $18.3 million through 3 venture capital deals;
- Revenue cycle management firms raised $10 million through one venture capital deal; and
- Health IT service providers raised $5.3 million through one venture capital deal (Mercom Capital Group report, 1/16).