Two recent reports suggest soaring investor interest in the healthcare information technology sector, citing high growth rates for its companies and rapid transformation in the industry, leaving providers in search of IT solutions. Two recent reports suggest soaring investor interest in the healthcare information technology sector, citing high growth rates for its companies and rapid transformation in the industry, leaving providers in search of IT solutions.
Investor interest in healthcare information technology is higher than ever, with venture capital funding reaching $1.4 billion in the first quarter of 2016, according to data from Mercom Capital Group.
A recent Mercom report on venture funding and mergers shows that private equity and corporate venture capital in healthcare information technology and digital health sector increased 27 percent, compared with $1.1 billion in investment in the fourth quarter of 2015.
The growth is even more stunning when compared with the same quarter of first year. Mercom said investment in the first three months was 74 percent more than in the first three months of 2015.
Some 146 deals were reported in the most recent quarter, compared with 145 in the last three months of 2015.
“The health IT sector is off to an impressive start this year, with significant funding activity led by wearable’s, data analytics and telemedicine,” said Raj Prabhu, CEO and co-founder of Mercom.
“Data analytics and telemedicine companies reached a significant milestone, each crossing $1 billion in funding raised to date,” he added.
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SOURCE: Health Data Management
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