VC funding in health IT sector reaches $3 bn in 2016

Venture capital funding in healthcare IT sector has reached $3 billion globally in the first half of 2016, says a report by global communications and consulting firm Mercom Capital Group.

Venture capital funding in the Health IT sector, including private equity and corporate venture capital, came in at $1.6 billion in 140 deals in the April-June quarter of 2016 compared to $1.4 billion in 146 deals in January-March quarter, 2016, Mercom Capital said in a statement.

There were 12 Indian Healthcare IT companies that received VC funding during April-June, the report said.

"The big reason for the jump in VC funding was record fundraising by Chinese companies. This is the first time since 2010 that health IT companies in the US have been out raised by other countries," said Raj Prabhu, CEO and Co-Founder of Mercom Capital Group.

VC Funding for US companies fell by almost 37 percent quarter-over-quarter (QoQ) and Chinese companies for the first time emerged as the top healthcare IT funding recipients, the report said.

Among the notable Indian transaction in the latest quarter, Gurgaon-based online price shopping and drug delivery company 1mg (previously HealthKartPlus) raised $16 million in funding from Maverick Capital Ventures, Sequoia India and Omidiyar Network, the statement added.

Bangalore-based developer of a health and fitness mobile app HealthifyMe raised $6 million in funding from IDG Ventures India, Inventus Capital and Blume Ventures.