Dive Brief:
- According to the Wall Street Journal's "Venture Capital Dispatch," health care software startup funding for the first quarter of 2013 hit a record high not seen in a single quarter since 2000.
- Health care software startups raised $237.5 million during Q1 2013, a figure the Journal attributes to the ACA — says WSJ, the industry is relying on start-up technology to ease the transition into the "new era."
- The trend continued this year, with 21 health care software developers getting funding, a tie with Q1 2013.
Dive Insight:
Funding cut across several categories of health software, according to the report. Companies receiving funding included data warehousing and analytics provider Health Catalyst, which got $41 million, Voalte, a maker of secure communication systems for health providers, which snagged $36 million, and Kareo, which makes software for small medical offices, which received $29.5 million. The health software sector is clearly experiencing something of a "golden age" — some might call it a bubble — and it wouldn't be surprising if the next quarter or two are equally prosperous for these companies.