Mercom Capital Group, llc, a global communications and research firm, released its report on funding and merger and acquisition (M&A) activity for the Digital Health (Healthcare Information Technology) sector for the first quarter of 2019. Mercom’s report covers deals of all sizes from across the globe.
“Funding levels were down versus last year in Digital Health in the absence of larger deals. M&A activity was also flat. However, Digital Health public equities experienced a turnaround in Q1 with 66% of them beating the S&P 500.”
Venture capital (VC) funding, including private equity and corporate venture capital into Digital Health (Healthcare IT) companies in Q1 2019, came to $2 billion (B) in 149 deals versus $1.4B in 142 deals in Q4 2018. VC funding in Q1 2019 fell 19% versus in Q1 2018 when nearly $2.5B was raised in 187 deals.
Since 2010, Digital Health companies raised ~ $37B in VC funding.
Total corporate funding for Digital Health companies – including VC, debt, and public market financing – totaled $2.2B in Q1 2019.
Chart: Digital Health VC Funding Q1 2018-Q1 2019
“Funding levels were down versus last year in Digital Health in the absence of larger deals. M&A activity was also flat. However, Digital Health public equities experienced a turnaround in Q1 with 66% of them beating the S&P 500 versus Q4 2018 when 63% of the equities we tracked performed below the S&P 500. Favorable market conditions have prompted several companies to announce IPO plans,” said Raj Prabhu, CEO of Mercom Capital Group.
Chart: Top Funded Healthcare IT/Digital Health Categories in Q1 2019
Top funded categories in Q1 2019 included: $557M raised by Data Analytics companies, mHealth Apps with $392M, Telemedicine with $220M, Healthcare Booking with $177M, Clinical Decision Support with $107M, Mobile Wireless with $90M and $80M for Healthcare IT Service Providers.