In the first quarter of 2012, venture capital funding for the health IT sector totaled $184 million in a record 27 deals, according to a report by communications and consulting firm Mercom Capital Group, Healthcare IT News reports (Monegain, Healthcare IT News, 4/17).
Overall, 46 venture capital firms participated in the 27 deals (Terry, FierceHealthIT, 4/17). The report also found that the health IT sector completed 34 mergers and acquisitions in Q1 2012 (Healthcare IT News, 4/17).
If health IT venture capital investments continue at this pace for the remainder of the year, the total health IT venture capital funding will exceed last year's total, according to FierceHealthIT (FierceHealthIT, 4/17).
Venture Capital Funding Categories
The report examined venture capital funding for specific health IT sectors and found that:
- Health information management companies raised $103 million through 15 deals;
- Personal health record companies raised $32 million through four deals;
- Health IT service providers raised $25 million through three deals;
- Revenue cycle management companies raised $10 million through one deal; and
- Telehealth providers raised $6 million through two deals (Mercom Capital Group report, 4/17).