AUSTIN, TX — (Marketwired) — 10/14/15 — Mercom Capital Group, llc, a global communications and research firm, released its report on funding and mergers and acquisitions (M&A) activity for the (IT) / sector for Q3 2015. The report covers deals of all sizes globally.
(VC) funding in the sector increased 32 percent quarter over quarter, to $1.6B (billion) in 148 deals compared to $1.2B in 139 deals in Q2 2015. Debt and public market financing came to $495M (million) in nine deals including two s. Total corporate funding for the sector including VC, Debt and Public Market Financing raised by publicly traded companies and IPOs for Q3 2015 came to $2.1B.
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funding has reached $3.57B for 2015 year-to-date, comparable to the $3.53 billion raised during the same period in 2014.
“VC funding into companies bounced back this quarter after a slow start this year,” commented Raj Prabhu, CEO and Co-Founder of Mercom Capital Group. —-Rating, Booking and Comparison Shopping companies had their best fundraising quarter since we began tracking the category.”
Healthcare practice-centric companies raised $357M in 42 deals compared to $473M in 41 deals in Q2 2015. Consumer-centric companies raised $1.2B in 106 deals this quarter compared to $727M in 98 deals in Q2 2015.
The top VC funded category this quarter was Rating, Booking & Comparison Shopping which brought in $728M in 15 deals. companies were second with $319M in 59 deals, with receiving $206M and /Sensors receiving $88M. Personal Health and Wellness companies accounted for $114M in 17 deals, followed by Practice Management Companies with $72M in five deals. companies raised $65M in 14 deals and Data Analytics companies raised $61M in 14 deals.
There were 69 early-stage deals at or below $2M, including 22 Accelerator/Incubator deals.
The top VC deals this quarter included the $394M raised by Guahao, the $130M raised by ZocDoc, the $90M raised by Practo, the $55.4M raised by Kareo, the $55M raised by Grand Rounds (previously ConsultingMD), and the $50M raised by Remedy Partners.
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A total of 285 investors including six Accelerators/Incubators participated in Healthcare IT deals this quarter, 20 participated in multiple rounds. Lux Capital, Rock Health, Sequoia Capital, Tencent Holdings, and Zaffre Investments had three deals apiece.
Globally, U.S. companies raised $934 million in 121 deals. Fourteen other countries recorded deals amounting to $648 million or about 40 percent of VC funding this quarter, the largest share of funding for companies outside the U.S. since Mercom began tracking the sector.
There were two IPOs in Q3. Teladoc–s $180M and Adherium–s $25.6M.
There were 57 transactions (11 disclosed) in the Health IT sector this quarter compared to 53 transactions (eight disclosed) in Q2 2015. M&A activity increased among consumer-focused companies with 18 deals this quarter.
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There were 551 companies and investors covered in this comprehensive report.
To learn more about the report, visit
Group is a global communications and research firm focused on healthcare information technology, cleantech and financial communications. Mercom advises companies on new market entry, custom market intelligence and strategic decision-making. Visit: . To get our market intelligence reports, visit: .
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