VC Healthcare IT Pipeline Looking Good

Last year, venture capital firms dug in for some big deals in the healthcare IT space. Mercom Capital stated in a recent survey that there were $1.2 billion in 163 deals across 2012, much, much more than the 49 deals/$480 million from ’11 and the piddling 22 deals/$211 million spent in 2010. Now, peHUB breaks down the biggest VC investments in the space with Thomson Reuters data—that accounted for about a quarter of overall deal value!


[slide title=”1. Castlight Health”]
Castlight Health makes tech for companies looking to gain a clearer view of healthcare costs; the company’s $100M Series D round included investors like T. Rowe Price and Redmile Group—as well as some unnamed mutual funds. Past VC capital came from USVP and Maverick Capital, among others.

Image Credit: Castlight Health

[slide title=”2. (tie) 23andMe”]
California personal genetics company 23andMe snapped up more than $50 million in a Series D round that included Yuri Milner, NEA, Google Ventures and Google co-founder Sergey Brin in late 2012.

Image Credit: 23andMe

[slide title=”2. (tie) GoHealth”]
Chicago-based healthcare IT firm GoHealth raised a $50 million round in mid-2012, as the company looked to expand within the health insurance industry.

Image Credit: GoHealth

[slide title=”4. Kinnser Software”]
Here’s a mega Series A: Kinnser Software’s A-round was a whopping $40 million, coming from Insight Venture Partners. The company has already been clocking impressive growth, making the grade for Inc. 500’s fastest growing 500 private companies list in ’10 and ’11. Kinnser is based in Austin, Texas.

Image Credit: Kinnser Software

[slide title=”5. Practice Fusion”]
Rounding out the list is Practice Fusion, the San Francisco-based physician/patient community. The company bagged a $34 million Series C round that was led by Artis Ventures and included Felicis Ventures, Morgenthaler Ventures and several angel backers.

Image Credit: Practice Fusion


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