The amount venture capital funds in healthcare IT raised in the third quarter of 2014 slowed from the record breaking numbers hit in Q2, but saw a record number of deals.
More than 200 deals were made in Q3 and funding hit $956 million, according to a report from global communications and consulting firm Mercom Capital Group. However, the amount raised is down from Q3, which saw a record breaking $1.8 billion raised with 161 deals.
Since 2010, VC funding in health IT has surpassed $300 million in 1,344 deals, according to the report.
Of the deals made in Q3, mobile health remained at the top for consumer-centric companies; for practice-focused funding, the health information management category received most of the funding.
Mergers and acquisitions currently are at their highest level since 2010--when Mercom began tracking them, according to the report. M&As raised $4.7 billion with 12 disclosed transactions last quarter. In Q2, that number was $2.2 billion in 12 disclosed transactions.
Some of the growth in mergers and acquisitions in health IT may be attributed to requirements from healthcare reforms--including the Affordable Care Act.
In addition, as use of electronic health records by providers and health tracking devices by consumers becomes more ubiquitous, the health industry is gaining a reputation as an emerging sweet spot for technology investors, FierceHealthIT previously reported.
To learn more:
- here's the report's executive summary (.pdf)