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Healthcare technology companies are attracting investment dollars at record rates, according to a new funding report.
Global venture capital funding in health IT nearly doubled in the first quarter of this year to $1.6 billion from $845 million in the fourth quarter of 2016, healthcare information technology research firm Mercom Capital Group said in its Q1 2017 Health IT Funding and M&A Report.
Total venture capital funding for Q1 2017 also exceeded the $1.4 billion raised in the first quarter of last year, the report said. Mercom Capital said digital health technologies have attracted more than $20 billion in venture funding since 2010. U.S.-based health IT companies received the most venture funding in the first quarter ($903 million).
“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,” Raj Prabhu, CEO and co-founder of Mercom Capital Group, said in a statement. “And publicly traded digital health companies actually fared much better in Q1 than last year.”
While funding in Q1 was distributed across a number of health IT technologies, nearly two-thirds of the funding (65 percent, or $1 billion) went to companies developing consumer-centric software and services such as mobile health apps, wearables, and patient engagement apps. The remaining dollars in Q1 (35 percent, or $574 million) went to firms developing healthcare practice-centric technologies for data management, analytics, security, and the revenue cycle.
The specific health IT sectors drawing the most venture funding in the first quarter were appointment booking ($315 million), mobile/wireless ($230 million), data analytics ($193 million), population health management ($115 million), telemedicine ($112 million), and social health network ($102 million), the report said.