Health IT deals are still on track for a strong 2020 despite the pandemic, according to a report from CB Insights.
Five observations:
1. Healthcare companies raised $8.8 billion worldwide from April 1 to May 24, 2020. There were 672 deals during that time.
2. Healthcare is on pace to close the second quarter with more than $15 billion in funding and 1,180 deals, which would be one of the strongest quarters over the past three years.
3. Funding in the second quarter could be up 6 percent over the first quarter and 11 percent year-over-year for healthcare companies, if current projections hold true.
4. Healthcare companies in North America are reporting a funding dip while companies based in Asia and Europe are seeing funding increase. Projected funding for North American companies is $8.9 million, down from $10.3 million in the second quarter.
5. There were 14 companies that had mega-rounds of funding in the second quarter through May 24, including Erasca, which closed a $200 million series B funding round. The biggest deal for a U.S.-based digital health company is Amwell's $194 million funding round.