 "Healthcare IT sector raised $737 mn via VC funding in Q3")
Global healthcare IT sector attracted $737 million funding from venture capitalists through 151 deals during July-September, 2013, a report by communications and consulting firm Mercom Capital Group said.
The dollar amount of disclosed deals this quarter surpassed the second quarter total of $623 million. In the first nine months of this year, the healthcare IT sector has raised $1.85 billion.
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"Funding into healthcare IT is on pace to double over last year," Mercom Capital Group CEO Raj Prabhu said.
He further said that "with major parts of the Affordable Care Act on the horizon, the focus is on health insurance exchanges, preventative care, wellness, population health, and a general shift from quantity to quality of care, which is reflected in this quarter's funding transactions."
Practice-focused companies received higher funding collectively this quarter at $489 million, with the help of some large rounds going into companies, the report added.
Meanwhile, the mergers and acquisitions (M&A) in Healthcare IT totaled $1.1 billion in 45 transactions.
Last quarter saw $108 million in 30 transactions. The most active categories for M&A transactions included Revenue Cycle Management with nine, followed by Practice Management with eight, and Telehealth with four transactions.
M&A activity in healthcare IT came in at nearly $1.1 billion in 45 transactions, six of which were disclosed, compared to $108 million in 30 transactions, two of which were disclosed in the second quarter 2013.