In the first three quarters of 2014, investors have poured about $5 billion into health IT companies. By the end of the year, total health IT funding could be double what it was in 2013, according to a new report from StartUp Health.
In 2013, 533 companies raised a total of $2.8 billion. During the first nine months of 2014, almost double that amount has been raised by 347 companies.
Even though there have been less deals in 2014 than 2013, the average deal size has increased significantly. Currently, early-stage companies are bringing in an average of $2.6 million, mid-stage companies $12 million and late-stage $13.5 million. The three largest investments so far this year have been Privia ($400 million), Preventice ($230 million) and proteus ($172 million).
Overall, the most active subsections of the health IT market have been big data and analytics ($1.17 billion invested so far this year), care system navigation solutions ($794 million) and practice management ($598 million).
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