Investors pumped$2.7 billion into digital healthcare, up by nearly 60% from $1.7 billion in the second quarter of 2016, says healthcare technology research firm Mercom Capital.

Big money continued to flow from investors into digital healthcare in the second quarter.

In fact, investors pumped$2.7 billion into digital healthcare, up by nearly 60% from $1.7 billion in the second quarter of 2016, says healthcare technology research firm Mercom Capital.

The digital health sector has now received $22.5 billion for 3,000 deals of varying size since 2010, says Mercom. “This was the best half and best quarter ever for digital health companies as a result of a few very large deals,” says Mercom CEO and co-founder Raj Prabhu. “We are now comfortably on pace to have the biggest funding year for digital health companies.”

The top-funded categories in the second quarter included patient engagement companies with $669 million, mobile health and apps with $325 million, data analytics companies with $264 million, and electronic medical records companies with $236 million.

This was the best half and best quarter ever for digital health companies.

Investor funding for all healthcare information technology deals in the first six months of the year totaled $4 billion from $3 billion in the first half of 2016. The number of deals year over year increased 26% to 359 transactions from 286 deals, Mercom says.

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The deals getting the biggest dollars from investors included:

  • $500 million raised by Outcome Health, a health information provider for waiting rooms.
  • $231 million raised by Modernizing Medicine, a developer of electronic health records.
  • $140 million from PatientPoint, a developer of patient and physician engagement
  • $90 million raised by Blink Health, a healthcaretechnology company with a free app and website that promises savings of up to 90% on generic drugs.
  • $75 million for WuXi Nextcode, a genomic information company.
  • $70 million raised by ClassPass, which lets members book unlimited fitness classes online at boutique studios for a flat rate.

A total of 454 investors participated in funding deals in the second quarter Mercom says.

“Even with such robust funding, there is still no sign of any digital health initial public offerings, and merger and acquisition activity is yet to catch up to the funding momentum,” Prabhu says.

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