Venture Capital funding totalled nearly $1.2 billion in 163 deals in 2012 compared to $480 million in 49 deals in 2011
Venture Capital (VC) funding totalled nearly $1.2 billion in 163 deals in 2012 compared to $480 million in 49 deals in 2011 and $211 million in 22 deals in 2010, the report said.
The fourth quarter of 2012 saw the largest number of deals in a quarter since Mercom started tracking the sector in 2010.
While the focus of funding has been in the Health Information Management [HIM] category, which covers technologies on the Healthcare Practice side, there is significant investment and funding going into companies that engage the consumers”like mobile health, tele-health, personal health and social health, Managing Partner of Mercom Capital Raj Prabhu said.
The Top 5 VC funding deals in 2012 were: Castlight Health, a provider of healthcare web and mobile-based transparency solutions that enable comparisons of doctors, hospitals and medical procedures based on price and quality, which raised $100 million, 23andMe, a personal genetics company that helps with the understanding of wellness and disease prevention through its personal genome service, which raised $58 million, GoHealth, an online portal that helps compare and shop health insurance coverage, which raised $50 million, Kinnser Software, a provider of clinical support to home health companies, which raised $40 million, and Practice Fusion, a provider of free web-based electronic medical records (EMR), which raised $34 million.
The top investors that participated in VC funding rounds in 2012 were: Connecticut Innovations, Founders Fund, Merck Global Health Innovation Fund, Qualcomm, and West Health Investment Fund, all with four deals each. Other notable investors were Aberdare Ventures, Canaan Partners, First Round Capital, and Khosla Ventures, all with three deals each.