Health care companies are receiving a lot of attention from VCs this year and the trend appears to be increasing. In the first two quarters of 2013 there were 272 deals completed in health care compared with 163 for the totality of 2012.
These trends in VC investment are a good harbinger for angel investors in health care who often rely on VCs to take on the next Series A round of funding. When VCs are funding lots of health care deals it reduces risk for angels and provides additional opportunities for growth.
A lot of the growth is in areas that will be presented in RVC’s upcoming “Investing in Health Care” event (Monday, September 9th 5:00-7:30pm) will be in the hot industry sectors including wearable devices, patient engagement, patient-to-physician, provider to provider and other technologies. RVC is also presenting non-IT based companies including a new approach to curing breast cancer and is currently in due diligence on a break-through cardiac product that reduces some heart surgeries by as much as 80%.
An interesting trend in this growth is that consumer focused investments are growing at an even faster rate with consumer-focused technologies representing 112 deals for a total of $416 million – about double from last year while practice-focused technologies represented 56 deals totaling $202 million for the quarter.
Health Information Management companies received the most VC funding at $212 million while mobile health came in at $158 million.
According to a report on Q2 Venture Capital activity in health care funding by Mercom Capital Group llc, Consumer-focused companies specializing in apps, wearable devices & sensors, remote monitoring, patient engagement, rating/shopping, and social health networks for physician-to-physician, physician-to-patient and patient-to-patient were all involved in multiple funding deals this quarter, whereas medical imaging, data analytics and EHR/EMR companies were among the practice-focused technologies that received most of the attention this quarter.”
To see some of Colorado’s most promising angel-stage companies present for investment and to hear about some of the leading trends in health care, be sure to put Rockies Venture Club’s “Investing in Health Care” event on your calendar. Click here for more information and to register.