Global healthare IT/digital health companies have raised $5.5 billion in VC funding in January-September this year, more than in all of 2016, says a report.
According to Mercom Capital Group, healthcare IT/digital health companies raised $5.5 billion in 586 deals from global VCs in the January-September period of 2017 against $4.2 billion from 463 deals in the same period of last year.
In the July-September quarter however, VC funding worth $1.5 billion was reported globally in 227 deals, a 38 per cent decrease compared to the record $2.4 billion raised in 194 deals in April-June 2017.
There were 16 Indian healthcare IT companies that received VC funding in the July-September quarter.
The notable Indian transactions include CureFit — a healthcare and fitness app maker — raising $25 million from Accel Partners, Kalaari Capital, IDG Ventures, and the UC-RNT Fund. The company also secured around $341,531 in funding from Trifecta Capital and Pratithi Investment Trust.
Some of the other Indian transactions include 1mg (previously HealthKartPlus) raising $15 million from HBM Healthcare Investments, Maverick Capital Ventures, Sequoia India, Omidyar Network and Kae Capital and online doctor consultation platform Mfine raising $1.5 million from Stellaris Venture Partners and healthcare entrepreneurs Mayur Abhaya and Rohit M A.
“The record breaking funding year continues for digital health companies. The 227 funding deals in July-September globally was the most ever for a single quarter,” Mercom Capital Group CEO and Co-Founder Raj Prabhu said.
Prabhu further added that the third quarter was all about data analytics with companies garnering almost a third of the funding in July-September and artificial intelligence companies receiving more than $200 million.
Healthcare practice-centric companies received $731 million in 78 deals, accounting for 49 per cent of the funding in July-September 2017. Consumer-centric companies accounted for 51 per cent of the funding in the third quarter of this year, raising $751 million in 149 deals, the report said.
The top funded categories in the July-September quarter were: data analytics companies with $554 million, telemedicine companies with $232 million, mHealth Apps companies with $150 million, and mobile wireless companies with $132 million, it added.