The US VC Market and the health IT industry
US investments in Venture Capital have taken a strong liking to health IT sectors in recent years. Interesting enough, Efraim Landa, of Effi Enterprises, has a huge passion for the health IT sectors as he does for investing. InformationWeek.com discusses, Venture capital firms investing over $633 million into medical software and information services in 2011 alone. This was the highest level of investments given to this sector since the year 2001. In that time over $759 million was raised, according to figures from Dow Jones VentureSource.
In the last three years there has been a larger focus in the health IT category due to Obama administration’s federal incentive programs taking off, there has been a lot more focus on this industry as a whole. The Obama administration’s federal incentive program asks hospitals to adapt in new technologies and request the use of electronic health records (EHRs). Not only has this change increased funding in the health IT sectors as mentioned, but this has increased the Internet, mobile devices, and information management software categories as well. It’s great to see the domino effect being played out in our economy in a positive light due to one change in how we operate our day to day tasks in business.
A few notable Venture Capital firms within the IT health industry are Accel, Bain Capital Ventures, Bessemer Venture Partners, Carlyle Group, and Essex. These are just a few of the firms that we all know and love. The list of firms that regard the IT health industry can go on and on. Some of these firms only work with early stage companies, while others help with early stage, expansion, growth, and the later stages. Some of these firms are in the US, and some are physically in other countries, like England, Hong Kong, and Beijing to name a few. Many of these firms support the US and other countries regardless of location.
The news source reports that many VC firms are watching health IT and taking action. The market is very lucrative due to new policies of automation and processes in the hospitals and doctor clinics. Experts believe regardless of the new focus on the development and interest in medical technology companies, there is still room for growth in this market. There is more change to be made, and there is more to capitalize on. People will always need healthcare; this is all about supply and demand. Fulfilling a need and advancing upon that need with innovative ideas and task that will make the process streamlined takes strategy and funding. The IT health sector is where is at for investors.
Posted on December 8, 2012, in Business financing, economics, the economy, VC financing, Venture Capital and tagged IT health industry, VC firms, Venture Capital. Bookmark the permalink. Leave a comment.