This week, Mercom Capital Group — a global communications and research firm — released its report on funding and mergers and acquisitions (M&A) activity for the Healthcare Information Technology (IT) / Digital Health sector for the first quarter of 2017.
Venture capital (VC) funding, including private equity and corporate VC, in the Health IT sector almost doubled quarter-over-quarter, coming in at $1.6 billion in 165 deals compared to $845 million in 159 deals in Q42016.
VC funding in Q12017 was also up compared to Q12016 when nearly $1.4B was raised in 146 deals. The Digital Health sector has now received $20B in VC funding since 2010.
Total corporate funding in Health IT — including VC, debt and public market financing — was $1.8B compared to $1B in Q42016.
“Digital Health funding is off to a fast start this year and there was no visible ‘Trump effect’ on investments in the sector, at least in the first quarter, and publicly-traded Digital Health companies actually fared much better in Q1 than last year,” says Raj Prabhu, CEO of Mercom Capital Group.