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Global healthcare IT sector attracted $623 million funding from venture capitalists through 168 deals during April-June, 2013, a report by communications and consulting firm Mercom Capital Group said.
The healthcare IT sector saw 168 transactions in the second quarter of 2013, higher than 104 in the previous quarter (January-March) and 163 in all of 2012.
"VC funding in Healthcare IT is now on pace to exceed $2 billion in 2013," Mercom Capital Group CEO Raj Prabhu said.
The marked shift of VC money going from practice-focused technologies towards consumer-focused technologies in the first quarter of this year has picked up pace in the second quarter, the report said.
In the second quarter, consumer-focused companies received twice the amount of funding ($416 million by way of 112 deals) compared to practice-focused companies ($207 million via 56 deals).
Among major deals Proteus Digital Health, a digital health feedback system provider, raising $45 million was the largest recipient of funding, followed by lifeIMAGE, a network for securely sharing medical images and related health information.
Meanwhile, M&A activity in the Healthcare IT sector dropped in Q2 2013 with 30 transactions of which only two were disclosed compared to Q1 2013, with 46 M&A transactions of which only five were disclosed.
Health information management companies attracted the most acquirers with 14 transactions followed by service providers with seven acquisitions and mobile health with three in Q2 2013, the report added.
