Medication Adherence under Health Engagement and Suite Solutions under Financial Analytics constituted large, upcoming and investment friendly sectors in the Healthcare Analytics landscape as Artificial Intelligence under Clinical Analytics and Workflow Optimization under Operational Analytics made up niche upcoming sectors that witnessed increased investment activity.
In 2016, stage wise, the number of fundraising rounds plunged across the board with seed registering the steepest decline by 79%, followed by late (75%) and then early (59%).
Average ticket size, however, climbed across the board-Series B grew by 30%, Series A by 12.5% and seed by a whopping 160%.
Top investments in the last one year include Modernizing Machine’s PE round of $231M in May, 2017 and Alignment Healthcare’s PE round of $115M of March, 2017 both led by Warburg Pincus.
While Rock Health led the tally for the most active investor for seed, GE Ventures led for both Series A and B as Ascension Ventures led for later stage.
Four companies have gone public in this sector since 2015 with 16 acquisitions dotting the space as Evolent Health picking up Valence Health for $219M was the only disclosed deal value.
Companies offering suite solutions like Alignment Healthcare and Health Catalyst have historically been the most investment friendly ($1.7B) business model with Clinical Analytics companies following a close second ($1.45B). Between 2016-17 YTD, investments totalling $1.90B have been invested in this sector.
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