Venture capital in the world of health IT. The concern for fitness and new technologies have led to the emergence of numerous applications and software that help people to lead a healthier life. The venture capital has seen the potential that this type of company has and has decided to invest in them. Of the total of 95 A and B rounds conducted in 2013 and 2014 in the health sector, 23 have been conducted in this market niche (ICT-wellness).
North American companies have received the most rounds in the sector.
North American companies lead the list of those that have received the most rounds in the sector; of the total of 19 companies that have received funding, 15 were American. Moreover, the size of the rounds is also generally higher for American companies than for other companies.
"The biggest round of these characteristics has been carried out by Health Solutions Audax which is based in Washington and is a platform that helps people lead healthier lives through games, health news and communities. The round, which closed this January 2014, was led by Navigy Holdings and its amount was $29M" says Diego Gutierrez, the group's alternative finance expert. Abra-Invest.
Sector Funding IT Sector
There are several investors who have done more than one deal in this niche market. Mayfield fund, Norwest Venture Partners and Khosla Ventures lead the list, making 3 rounds between 2013 and early 2014.
Mayfield Fund is one of the oldest venture capital funds in the USA and is primarily focused on investments in information technology companies. The Mayfield fund has raised 2 rounds in Basis Science and 1 in Fibmob.
Norwest Venture Partners, based in Palo Alto, has funded more than 500 companies since its inception and manages more than $3B. The rounds in this sector have been carried out at Basis Science and at Misfit Wereables.
Khosla Ventures has invested in Misfit Wereables, Pact Fitness and Quantuss.
Basis Science
Basis Science is the only company to have done 2 rounds in the sector in the last year and the one that has attracted the most investors. Between the 2 rounds it has raised a total of $35M.
"This March 2014 Basis Science has been bought by Intel for about $150M," says Diego Gutierrez.
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