Mercom’s comprehensive report covers deals of all sizes across the globe
Mercom Capital Group, a global communications and research firm, released its report on funding and mergers and acquisitions activity for the Digital Health (Healthcare Information Technology) sector for the third quarter and first nine months (9M) of 2018. Mercom’s comprehensive report covers deals of all sizes from across the globe.
Global VC funding for digital health companies in 9M 2018 was 46 per cent higher year-over-year (YoY) with a record $8 billion raised in 556 deals compared to the $5.5 billion in 586 deals in 9M 2017.
Another annual record will be set in 2018 as the $8 billion has already surpassed the previous high mark of $7.2 billion raised in all of 2017.
A new record was also set in Q3 2018 with VC funding coming to $3.1 billion in 173 deals surpassing the $2.4 billion raised in 196 deals in Q2 2018.
Digital Health companies have now received $34 billion in the 4,006 VC funding deals, according to Mercom.
Total corporate funding in digital health companies – including VC, debt, and public market financing came to $3.5 billion in Q3 2018 compared to $4.4 billion in Q2 2018.
Raj Prabhu, CEO of Mercom Capital Group said, “For the first time, we saw funding cross $3 billion in a single quarter in digital health and funding raised year-to-date has already surpassed all of 2017 with a realistic chance of hitting $10 billion this year. The sector has significant momentum and substance behind this record funding, from regulatory support to entry of large tech and healthcare companies – including a slew of intellectual property applications and FDA approvals.”
Healthcare Practice-focused companies received 40 per cent of the funding in Q3 2018, raising $1.3 billion in 62 deals compared to $702 million in 58 deals in Q2 2018. Healthcare Consumer-centric companies accounted for 60 per cent of the funding in Q3 2018, raising $1.9 billion in 111 deals compared to $1.7 billion in 138 deals in Q2 2018.
The top funded areas in 9M 2018 were: Data Analytics with $1.8 billion, Telemedicine with $1.1 billion, mHealth Apps with $1 billion, Mobile Wireless with $728 million, Clinical Decision Support with $655 million, Wearables for $457 million, and Wellness with $318 million.
The top funded categories in Q3 2018 were: Data Analytics with $889 million, mHealth Apps with $504 million, Mobile Wireless at $456 million, Telemedicine companies with $374 million, Wearables with $149 million, Social Health Networks with $148 million, and Wellness with $117 million.
There were 68 early stage deals in Q3 2018, including one accelerator or incubator deal.
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