The top funded health IT technologies since 2010 were mHealth Apps ($2.7B), wearables ($1.6B), telemedicine ($1.5B), data analytics ($1.4B), scheduling/appointment booking ($1.2B), clinical decision support ($998M), wellness ($889M), mobile/wireless ($885M), and practice management solutions ($818M). According to Mercom’s Annual and Q4 2016 Healthcare IT Funding and M&A Fact Sheet, the sector received $18.5 billion in VC funding in 2,672 deals and almost $7.5 billion in debt and public market financing (including IPOs), bringing the total funding for the sector to $26 billion.
Last year, top sectors for VC investments were following:
- Mobile Health – $2.1 billion in 240 deals
- Health Information Management – $1.3 billion in 154 deals
- Telehealth – $660 million in 86 deals
- Personal Health – $407 million in 57 deals
- Scheduling, Rating & Shopping – $283 million in 49 deals
- Service Providers – $138 million in 15 deals
- Revenue Cycle Management – $90 million in 11 deals
- Security – $45 million in 5 deals
- Social Health – $2 million in 5 deals
Top VC Funded Deals in 2016 were
- Ping An Good Doctor – raised $500 million from international and Chinese investors.
- Chunyu Yisheng – $183 million from China International Capital Corporation (CICC) and other investors.
- Flatiron Health – $175 million from Roche, Allen & Company, Baillie Gifford, and Casdin Capital.
- Jawbone – $165 million in new funding from KIA and Sequoia Capital.
- Meet You – $151 million from existing and new investors including Matrix Partners China, K2VC, and Cathay Capital Private Equity.
Top VC Investors with Multiple Deals in 2016
- Khosla Ventures (7 deals)
- GE Ventures (6 deals)
- Social Capital (6 deals)
- BlueCross BlueShield Venture Partners (6 deals)
Corporate M&A Transactions
- Q4 2016: $880 million in 42 transactions (11 disclosed)
- Q3 2016: $3.7 billion in 53 transactions (16 disclosed)
- Q2 2016: $1.5 billion in 52 transactions (7 disclosed)
- Q1 2016: $6.7 billion in 58 transactions (9 disclosed)
- Q4 2015: $1.4 billion in 53 transactions (13 disclosed)
- 2016 Annual: $13 billion in 205 transactions (43 disclosed)
- 2015 Annual: $6.8 billion in 219 transactions (46 disclosed)
Top 5 Disclosed M&A Transactions in 2016
- Pamplona Capital Management acquired MedAssets for $2.75 billion.
- IBM acquired Truven Health Analytics for $2.6 billion.
- EQT Equity fund EQT VII (EQT) acquired Press Ganey Associates for $2.35 billion.
- Allscripts acquired Netsmart Technologies from Genstar Capital for $950 million.
- Veritas Capital acquired Verisk Analytics’ healthcare services business from Verisk Health (known today as Verscend) for $820 million.
IPOs in 2016:
- NantHealth – raised $91 million through its IPO. The shares are listed and began trading on Nasdaq in June 2016.
- Tabula Rasa HealthCare (TRHC) – $51.6 million. The company’s shares are listed and began trading on Nasdaq in September 2016.
- Oneview Healthcare – raised $46.5 million and started trading on the Australian Stock Market through CHESS Depository Instruments in March 2016.
- Senseonics – raised $45 million and its shares began trading on the New York Stock Exchange in March 2016.
IPO Transactions
- Q4 2016: $52 million in 1 deal Q3 2016: No IPOs
- Q2 2016: $91 million in 1 deal
- Q1 2016: $91.5 million in 2 deals
- 2016: $234 billion in 4 deals
- 2015: $2.2 billion in 7 deals