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
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.
“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.
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.
There were 48 early-round deals in Q1 2019.
The top VC deals in Q1 2019 included: $170M raised by Doctolib, $100M
from Health Catalyst, $88M raised by Calm, and $80M by Taimei Medical
A total of 371 investors participated in funding deals in Q1 2019 versus
412 investors in Q1 2018. There were 16 FDA and CE approvals issued to
Digital Health companies in Q1 2019.
Digital Health VC funding deals were distributed across 17 countries in
In Q1 2019, there were 45 M&A
transactions involving Digital Health companies versus 48 M&A
transactions in Q1 2018.
The top disclosed M&A transaction in Q1 2019 was the $195M acquisition
of Voalte by Hill-Rom Holdings.
Mercom Capital Group, LLC is a global communications and research
firm focused on digital health, cleantech and financial communications.
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