Brief

Venture capital funding for health IT falls

Dive Brief:

  • After a record-breaking year in 2014, venture capital funding for health information technology has fallen in the first quarter of 2015.
  • According to Mercom Capital Group, funding has decreased by around 35%.
  • In 2014, venture capital funding brought in twice as much money as it did in 2013, making 2014 one of the best years for health IT funding to date.

Dive Insight:

According to Mercom, "Funding fell across the board with the exception of Mobile Health, which was the bright spot this quarter. There was also significant M&A activity in the first quarter for mHealth companies."

A report by StartUp Health says this year's slower start "is due to an increase in investor focus and a sign of a maturing market." It goes on to say that "startups need to demonstrate results and early validation, as well as abilities to scale to tap into today's funding environment."

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Filed Under: Health IT
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