Investments in healthcare computing during the first half of 2017


The air is boiling with fascinating and innovative technologies in healthcare. While its potential is impressive, there is a huge gap between cutting-edge ideas and practical technologies that are in demand here and now. Therefore, it is time to check the reality and highlight what technologies were sought during the first half of 2017.

In accordance with Mercom Capital GroupThe recent report on the financing of global venture capital for IT and digital health in the first half of 2017 involved investments of 4 billion dollars, an increase of 36% compared to the same period of 2016.

In addition, investments in Q2 2017 increased by 47% compared to Q1 2017. In total, 454 investors, including accelerators and incubators, participated in financing operations in Q2 2017. It should be noted that the second quarter of 2017 had with 194 financing agreements, which this year represents the second place in closing agreements since 2010. Only the third quarter of 2014 exceeds this number with 212 closed offers.

“This was the best half and best quarter in history for digital healthcare companies as a result of a few very big deals. We are now comfortable having the biggest funding year for digital healthcare companies ”said Raj Prabhu, CEO and co-founder of Mercom Capital Group. “Even with such solid funding, there are still no indications of digital health IPOs and mergers and acquisitions activity is yet to catch up with the funding boost.”

Main investment areas of the last six months

The first half of 2017 brought us 4 categories with more demand:

  • Patient participation with a total funding of $ 684 million
  • Data analytics with $ 458 million
  • Mobile applications with $ 399 million
  • Health appointment booking with $ 391 million

These areas represent several significant directions, although they remain too vague to draw conclusions. So let’s delve into the details and find out who got the money and why.

6 main investees in Q2 2017

We will focus on 6 companies with the most impressive income from capital operations in Q2 2017:

  1. Health result with $ 500 million. They are known for creating patient education solutions at the point of care. Outcome Health’s offerings include hospital mobile tablet applications in exam rooms and infusion rooms, as well as digital display software for waiting rooms.
  2. Modernization of the proposed Medicine $ 231 million. The company is dedicated to making internship management software convenient and native to physicians. EMA or Electronic Medical Assistant is a cloud-based, specialty-specific software that cuts writing with touch-and-slide technology and adjusts to user preferences.
  3. PatientPoint obtained $ 140 million to amplify the functionality and scope of its patient education and patient-physician engagement products. Specifically, the company develops branded hospital applications for patients and physicians, interactive and educational solutions for exam rooms, patient information programs and more.
  4. Blink Health, a platform that allows the payment of prescriptions online and reduce drug prices by up to 95%, collected $ 90 million to evolve further.
  5. He obtained WuXi Nextcode, a genomic information company $ 75 million. It provides a platform for the correlation of genome and phenotype data at scale and rate, which is used in population genomics, clinical diagnosis, and scientific well-being projects.
  6. Last but not least, $ 70 million Major investments have found their way to ClassPass. This is a wellness-focused monthly subscription service that offers its users access to the network of boutique gyms and fitness studios.

Notable mergers and acquisitions

We end the overview with some interesting mergers and acquisitions that have taken place over the last six months:

  • Teladoc paid $ 440 million for Best Doctors, a service and solution provider that leverages technology to overcome cases of abuse and diagnosis.
  • Cochlear acquired Sycle, an audiology software company, for $ 78 million.
  • Athenahealth bought Praxify Technologies, a mobile healthcare application developer, for $ 63 million.
  • And Entry, a provider of integrated mobile solutions, joined NextGen Healthcare for $ 34 million.

So what’s on the radars of health IT investors

Although patient involvement is still perceived as a patient portal, investments made during the first half of the year give patient participation an offline turn with interactive technologies at care points.

The amount of funds poured into the appointment booking was a startling sight. As booking is a common feature, the reasons for large investments are interesting and not entirely clear at the moment.

Speaking of mobile technologies, they receive multifaceted care in the form of business investments and acquisitions, where large EHR vendors tend to expand their services by merging with potential mobile health development companies.

So, we look forward to seeing how the second half of the year turns out when it comes to investing in healthcare computing. If you have any suggestions or ideas on what to ask for in the next six months, please share them in the comments.

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