Looking Back at Venture Capital Funding for Health IT during 2013


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Where the road ends remains a point of speculation, but there is no arguing that VC funding for Health IT was up in a big way during 2013. According to the Mercom Capital Group Healthcare IT Funding and M&A Annual Report, 2013 funding in Health IT closed out at $2.2 billion, almost double the 2012 figures. Here is a quick recap of the facts, figures and top deals from the Mercom report:

 

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2013 Health IT

$2.2 billion in total VC funding for Health IT during 2013 (up from $1.2 billion in 2012)

571 deals (up from 163 deals in 2012)

466 active investors in funding rounds (up from 236 in 2012)

9 new funds were established with a partial or total focus on Healthcare IT

 

Top 5 funded companies:

Evolent Health ($100M- Series B)


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Practice Fusion ($85M- Series D)

Fitbit ($73M- Undisclosed)

MedSynergies ($65M- Undisclosed)

Proteus ($45M- Series F)

 

Top 4 Health IT M&A transactions:

Passport Health Communications acquired by Experian (LSE: EXPN) for $850M

Greenway Medical Technologies acquired by Vitera Healthcare for $644M

Epocrates acquired by AthenaHealth (NASDAQ: ATHN) for $293M

dbMotion acquired by Allscripts (NASDAQ: MDRX) for $235M

 

Health IT deals for 2014 already include the acquisition of WellnessFx by Health Elements and On The Spot Systems by Press Ganey. While there is much speculation surrounding the sustainability of the startup funding environment, one thing is certain, 2013 was the year to be a Health IT startup seeking capital.


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