Venture capital funding in the health IT industry has remained strong for the fifth consecutive quarter, and the trend is expected to continue regardless of the outcome of the presidential election, according to a report from Mercom Capital Group, Healthcare IT News reports.
The report found that 58 investors participated in funding rounds during the third quarter of 2012, with some investors participating in multiple deals.
According to the report, the top-funded types of health IT companies during Q3 2012 were:
- Health information management companies, which received $101 million in 20 deals;
- Mobile health companies, which received $39 million in seven deals; and
- Social health network companies, which received $26 million in four deals.
In addition, the report found that 37 merger and acquisition transactions occurred in Q3 2012, amounting to $3.2 billion.
Raj Prabhu, managing partner of Mercom, said, "2012 has the potential to be a billion dollar VC funding year for the sector," adding, "[T]here continues to be a strong interest and demand in the (health IT) sector with a consumer angle as health apps and social health networks are becoming popular and more mainstream."
He credited the HITECH Act, the Affordable Care Act and HHS' Health Data Initiative for fostering growth in the health IT market (Manos, Healthcare IT News, 10/23).