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Mercom Capital Group: Global Digital Health VC Funding in 9M 2018 Reaches Record $8 Billion
[October 23, 2018]

Mercom Capital Group: Global Digital Health VC Funding in 9M 2018 Reaches Record $8 Billion


Mercom Capital Group, llc, a global communications and research firm, released its report on funding and mergers and acquisitions (M&A) activity for the Digital Health (Healthcare Information Technology) sector for the third quarter (Q3) and first nine months (9M) of 2018. Mercom's comprehensive report covers deals of all sizes from across the globe.

Full Report

Global VC funding for Digital Health in 9M2018 was up 46 percent year-over-year (YoY) with a record $8 billion (B) in 556 deals versus 9M2017's $5.5B in 586 deals. Q32018 VC funding reached $3.1B in 173 deals versus Q2 2018's $2.4B in 196 deals.

Digital Health companies have raised ~$34B in 4,006 VC funding deals since 2010. Total corporate funding - including VC, debt, and public market financing - came to $3.5B in Q32018 versus $4.4B in Q22018.

Digital HealthVC 9M2017 - 9M2018



Digital Health VC Q32017 - Q32018

"For the first time, we saw funding cross $3B 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 $10B this year. The sector has significant momentum and substance behind this record funding, from regulatory support to entry of large tech and healthcare companies," said Raj Prabhu, CEO of Mercom Capital Group.


Healthcare Practice-focused companies raised $1.3B in 62 deals in Q32018 versus Q2 2018's $702 million (M) in 58 deals. Healthcare Consumer-centric companies raised $1.9B in 111 deals in Q32018 versus $1.7B in 138 deals in Q22018.

9M2018 top funded areas: Data Analytics $1.8B, Telemedicine $1.1B, mHealth Apps $1B, Mobile Wireless $728M, Clinical Decision Support $655M, Wearables $457M, Wellness $318M.

Q32018 top funded categories: Data Analytics $889M, mHealth Apps $504M, Mobile Wireless $456M, Telemedicine $374M, Wearables $149M, Social Health Networks $148M, Wellness $117M.

Top Funded Categories Q32018

9M2018 Top VC deals: $300M 23andMe, $291M American Well, $250M Butterfly Health Network, $240M Heartflow, $200M Helix, $200M SomaLogic.

9M2018 had 1,132 digital health funding investors.

In 9M2018, there were 172 Digital Health M&A transactions versus 146 in 9M2017. Q32018 had 56 M&A transactions (nine disclosed) versus 68 M&A transactions (13 disclosed) in Q22018.

9M2018 Top M&A transactions: Platinum Equity's $2.1B acquisition of LifeScan, Roche's $1.9B acquisition of Flatiron Health, Inovalon's $1.2B acquisition of ABILITY Network, Veritas Capital's $1B acquisition of GE's Healthcare IT division, Best Buy's (News - Alert) $800M acquisition of Greatcall.

This report is 107 pages long, contains 67 charts, graphs and tables, and covers 701 investors and companies.

Full Report

Mercom Capital Group

Mercom Capital Group is a global communications and research firm focused on healthcare information technology, cleantech and financial communications. Mercom advises companies on new market entry, custom market intelligence and strategic decision-making. Visit: www.mercomcapital.com, signup to get weekly market intelligence reports.


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