VC funding in Healthcare IT sector reaches new heights with $2.2 Billion in 2013
Written by Matt Johnson
Mercom Capital Group, llc, a global communications and consulting firm, released its annual report on funding and mergers and acquisition (M&A) activity for the Healthcare Information Technology (IT) sector in 2013
Venture capital (VC) funding in the Healthcare IT sector almost doubled in 2013, totaling $2.2 billion in 571 deals compared to $1.2 billion in 163 deals in 2012. The deal count included 139 accelerator and incubator deals. The sector also raised $648 million in debt and public market financings, bringing total corporate funding raised by the sector in 2013 to almost $3 billion. VC funding dropped in Q4 2013 with $337 million in 147 deals compared to $737 million in 151 deals in Q3.
See figure "Healthcare IT VC Funding 2010-2013".
“After record fundraising totals in 2013, Healthcare IT companies have now received $4 billion in venture funding since 2010,” said Raj Prabhu, CEO and Co-Founder of Mercom Capital Group. “Mobile health companies led the way in 2013 as the technology transformation of the healthcare industry continues.”
Overall in 2013, consumer-centric companies raised $1.1 billion. Mobile Health companies were the largest recipient of VC funding, raising $564 million. Personal Health companies received $198 million and Social Health companies brought in $166 million.
Practice-centric companies also raised $1.1 billion in 2013. Areas that received the most funding under this category were Population Health with $179 million, Electronic Medical Record/Electronic Health Record (EMR/EHR) with $166 million and Practice Management with $162 million.
The Top 5 VC funded companies in 2013 were: Evolent Health, a population health management services organization that integrates technology, tools and on-the-ground resources to support health systems in executing their population health and care transformation objectives, which raised $100 million; Practice Fusion, a web-based EMR provider, which raised $85 million in two deals; Fitbit, a fitness and health tracker company, which brought in $73 million – also in two deals; MedSynergies, a provider of revenue and performance management solutions to healthcare providers, which raised $65 million; and Proteus Digital Health, a provider of a digital health feedback system, which raised $45 million.
See figure: "Healthcare IT: Top 5 VC Funded Companies in 2013".
There were 466 investors involved in funding rounds for Healthcare IT companies in 2013. The top VC investors were Khosla Ventures and The Social+Capital Partnership with eight deals each, followed by Norwest Venture Partners with seven deals, and Kleiner Perkins Caufield & Byers with six deals.
See figure: "Healthcare IT - Top 5 Investors in 2013".
Within the United States, California led Healthcare IT fundraising with 134 deals followed by New York with 48, Massachusetts with 39, Texas with 29, and Tennessee with 26. A total of 43 states had at least one deal in 2013.
M&A activity in the Healthcare IT sector remained flat in 2013, with 165 transactions compared to 163 transactions in 2012. There were 44 M&A transactions in Q4 2013. There were 16 companies that made multiple acquisitions in 2013.
Health Information Management (HIM) companies saw the most M&A activity in 2013 with 76 transactions, followed by Revenue Cycle Management companies with 25.
The Top 5 disclosed M&A transactions included the $850 million acquisition of Passport Health Communications, a provider of technology solutions and services that help hospitals and healthcare organizations streamline business operations and secure payment for their services, by Experian, a global information services company; the acquisition of Greenway Medical Technologies, a Revenue Cycle Management and EHR company by Vitera Healthcare Solutions, a provider of EHR and practice management software, for $644 million; athenahealth’s $293 million acquisition of Epocrates, a developer of a medical application for clinical content, practice tools, and health industry engagement at the point of care; Allscripts’ $235 million acquisition of dbMotion, a developer of a data normalization platform for multiple electronic health records; Zotec Partners’ $200 million acquisition of Medical Management Professionals, a medical billing and practice management company; and Medtronic’s $200 million acquisition of Cardiocom, a provider of integrated clinical telehealth services.
There were two Healthcare IT IPOs in 2013, raising a combined total of $195 million. Benefitfocus, a provider of cloud-based benefits software, raised $131 million, and Covisint, provider of a cloud engagement platform for creating and enabling new mission-critical external business processes, raised $64 million.
To learn more about the report, visit: http://store.mercom.mercomcapital.com/products-page/healthcare-it-reports/hit-2013-annual-and-q4-funding-report/.
About Mercom Capital Group
Mercom Capital Group, llc, is a global communications and consulting firm focused on healthcare information technology (HIT), cleantech and financial communications. Mercom delivers highly respected industry market intelligence reports covering Healthcare IT, Solar Energy, Wind Energy and Smart Grid. Our reports provide timely industry happenings and ahead-of-the-curve analysis specifically for C-level decision making. Mercom’s consulting division advises companies on new market entry, custom market intelligence and overall strategic decision-making. Mercom’s communications division helps companies and financial institutions build powerful relationships with media, analysts, government decision-makers, local communities and strategic partners. For more information about Mercom Capital Group, visit:http://www.mercomcapital.com. To get a copy of Mercom’s popular market intelligence reports, visit: http://mercomcapital.com/market_intelligence.php.
Jvion launches AI-powered map to tackle mental health crisis
Clinical AI company Jvion has launched an interactive map of the US that highlights areas that are most vulnerable to poor mental health.
The Behavioral Health Vulnerability Map uses Jvion's AI CORE™ software to analyse public data on social determinants of health (SDOH) and determine the vulnerability of every US Census block group.
Vulnerability refers to the likelihood that residents will experience issues like self-harm, suicide attempts or overdoses. The map also identifies the most influential social determinants in each region, to show the social and environmental conditions that contribute to mental illness.
As an example, the map shows that Harrison County in Mississippi has a 50% higher suicide rate than the rest of the state. It also shows a high percentage of individuals in the armed forces at a time when active duty suicides are at a six-year high, along with a high prevalence of coronary artery disease, arthritis, and COPD, all chronic illnesses that are linked to a higher suicide risk.
The map also shows Harrison County has a high percentage of Vietnamese Americans, who studies suggest have high rates of depression and may be less likely to seek help from mental health professionals.
The map was built using the same data and analytics that Jvion used to create the COVID Community Vulnerability Map, which was launched towards the start of the pandemic.
With this new map, Jvion is aiming to tackle the growing mental health crisis in the US. “At a time when so many Americans are struggling with their mental health, we’re proud to offer a tool that can help direct treatment resources to the communities that need it most,” said Dr John Showalter, MD, Jvion’s chief product officer, who led the development of the map.
“For too long, the healthcare industry has struggled to address social determinants of health, particularly in the context of behavioural health. Our hope is that by surfacing the social and environmental vulnerabilities of America’s communities, we can better coordinate our response to the underlying conditions that impact the health and wellbeing of people everywhere.”