As the healthcare IT market grows, venture capital investors are getting increasingly bullish on startups specializing in verticalized predictive and prescriptive data and analytics solutions for the healthcare sector.
Over the past two years, startups in the healthcare data analytics space have taken nearly $200M across more than 40 deals. And deal activity to the emerging space is already heating up in 2014. Several startups including Kleiner Perkins-backed Zephyr Health, Khosla Ventures-backed Lumiata, and Mitsui-backed GNS Healthcare are just a few of the firms that have received venture financing in the year-to-date. And data storage and analytics firm Health Catalyst received a notable $41M investment from Sequoia Capital, Norwest Venture Partners, and Kaiser Permanente Ventures at the end of last month.
Of note, year-over-year funding to venture-backed healthcare analytics companies grew nearly 108%, while deal activity rose over 40% as shown in the chart below.
Over the past two years, seed and Series A rounds have taken 60% of deal activity in the healthcare analytics space but mid-stage financing has seen strong YoY deal growth as a growing number of companies including Google Ventures-backed Predilytics and ArborMetrix went on to raise additional financing last year.
Geographically, Massachusetts saw about 1/4 of healthcare analytics deals since the start of 2012, followed by NY and Silicon Valley. Interestingly, nearly 1/2 of all deal activity took place outside of major venture hubs ranging from Michigan (ArborMetrix) to Utah (Health Catalyst) to Florida (QualMetrix).
A list of the most well-funded healthcare analytics startups can be found on the ‘Research’ tab, after logging in to CB Insights. Note: This research is only available to subscribers with access to CB Insider. For more healthcare analytics financing and exit data and interactive rankings, check out the CB Insights Venture Capital Database. Sign up for free below.