In 2011, venture capital investments in the health IT sector generated 86 deals worth $633 million, according to a report from Dow Jones VentureSource, CMIO reports.
The numbers represent a 26% increase in health IT deal activity and a 22% increase in health IT capital raised over the previous year, according to the report.
According to the report, the increase in health IT investments was fueled by interest in:
- Electronic health record systems;
- Internet and mobile health applications; and
- Information management tools.
The researchers found that overall investment in the health care sector fell slightly to 738 deals worth $8.4 billion, compared with 747 deals worth $8.3 billion in 2010.
Health IT activity finished third in dollars invested behind biopharmaceuticals and medical devices (Pearson, CMIO, 1/24).