Digital Health received notable venture capital (VC) funding in Q1 2016. Total corporate funding including VC, debt and public market financing in digital health sector (also known as Health IT) stood at $1.5 billion, an increase of 74 per cent compared to the same quarter last year and 27 per cent quarter-over-quarter. The funding for Q4 2015 was $1.1 billion, over 145 deals.
"Healthcare practice-centric companies received 42 per cent of the funding in Q1 2016, raising $569 million in 49 deals compared to $360 million in 44 deals in Q4 2015. Consumer-centric companies received 58 per cent of the funding this quarter, bringing in $796 million in 97 deals compared to $711 million in 101 deals in Q4 2015", says the report.
According to the report, wearables/sensors were the top funded areas in Q1 with $260 million. Data analytics companies came second with $197 million, followed by telemedicine with $171 million, mHealth apps with $120 million, and consumer health information/education with $100 million.
VC Deals and M&A Transactions
As per the report, top VC deals in the first quarter of this year included the $175 million raised by Flatiron Health, $165 million raised by Jawbone, $95 million raised by Healthline, $70 million raised by Health Catalyst, $46 million raised by inviCRO, and $40 million raised by higi.
This quarter had the highest recorded number of M&A transactions in a single quarter. There were 58 M&A transactions (nine disclosed) in the Health IT sector this quarter compared to 53 transactions (13 disclosed) in Q4 2015, says the report. The Top 5 disclosed M&A transactions were the $2.75 billion acquisition of MedAssets by Pamplona Capital Management, the $2.6 billion acquisition of Truven Health Analytics by IBM, the $950 million acquisition of Netsmart Technologies by Allscripts, the $140 million acquisition of CenTrak by Halma, and the $119 million acquisition of MedicalDirector by Affinity Equity Partners.
Notable Indian Transactions in Q1 2016
As per Mercom Capital's report, "Portea Medical, a home healthcare services provider, acquired a majority stake in PSTakeCare, an online platform to book doctors, hospitals and other healthcare services in Mumbai, for an undisclosed sum". Apart from M&A activity, following VC fundings are worth noting:
- BabyBerry, a child health and wellness app, secured $1 million.
- Healthenablr, raised $800,000 in seed funding.
- LoveCycles, a developer of a menstrual and physiological health tracking app, raised $741,000 from Prime Venture Partners.
- Touchkin raised $400,000 in seed funding from a group of angel investors including Raghunandan G, co-founder of TaxiForSure; Amit Gupta, co-founder of InMobi; Himanshu Aggarwal, CEO of Aspiring Minds; Anuj Srivastava, CEO of Livspace; and Puneet Agarwal, co-founder of Moneyview.
- eKincare, raised $329,000 in seed funding from Bitkemy Ventures, Maheshwari Investment and other individual investors.
- AddoDoc Technologies, raised $300,000 in seed funding led by angel investor Rajul Garg.
- Zoctr Health Network, raised an undisclosed amount of seed funding from Times Group's Brand Capital.