Health IT venture capital funding totaled $1.2 billion in 2012, according to a report by communications and consulting firm Mercom Capital Group, Healthcare IT News reports.
The amount is more than 200% higher than 2011's total of $480 million (Miliard, Healthcare IT News, 1/29).
According to the report, 163 health IT venture capital funding deals occurred in 2012, compared with 49 deals in 2011 and 22 deals in 2010 (Mercom report, January 2013).
The report credited the 2009 federal economic stimulus package's HITECH Act with encouraging investment in the sector (Baum, MedCity News, 1/29).
Top Health IT Investors
According to the report, the top investors that participated in health IT venture capital funding rounds in 2012 included:
- Connecticut Innovations,
- Founders Fund,
- Merck Global Health Innovation Fund;
- Qualcomm; and
- West Health Investment Fund.
Each of the top investors took part in four funding deals last year (Healthcare IT News, 1/29).
Health IT Subsectors Involved in Deals
According to the report, the health IT subsectors involved in the most deals in 2012 were:
- Practice management solutions, with 14 deals;
- Electronic health record companies, with 13 deals;
- Clinical decision support, with 10 deals; and
- Business and clinical intelligence companies, with 10 deals (MedCity News, 1/29).