Healthcare companies secured more than $1.1 billion in venture capital funding during the second quarter, about $50 million more than during the first three months of the year, according to market-watcher Growthink Research, Venice, Calif.
The healthcare total represents about 26.1% of all U.S. private equity placement, compared to 24.6% in the preceding quarter.
However, an even greater share of healthcare venture capital flowed into biotechnology, pharmaceutical and medical-device companies, at the expense of patient care and software firms, Growthink reports. None of the 10 largest deals involved companies in the medical software and services or the diagnostic/patient care categories.
Just 16 medical software and services companies won funding during the second quarter, vs. 20 in the previous period, and the size of the deals dropped precipitously. Growthink says the 16 firms secured a combined $66.7 million for the three months ended June 30--only 6% of all healthcare VC money--61% below the previous quarter's $170.5 million.
The first-quarter figure for software and services companies represents a 16% share of the healthcare market, according to Growthink.
Accelerator Corp., a Seattle-based partnership that seeks to bring into practice top scientific ideas in systems biology, led in this sector by landing a combined $15 million in private equity from five investors, Growthink says.
Among companies that make software for physician practices, clinical benchmarking software developer DoctorQuality, Conshohocken, Pa., and practice management systems vendor ProVation Medical, Minneapolis, each landed $2 million during the second quarter.
A mere three companies offering diagnostic or patient care products and services completed funding rounds, valued at $18.8 million. It represents a 76% drop-off from the $79.3 million that seven firms in this category secured during the first quarter.
Most of the money went to Newport Beach, Calif.-based OnCURE Medical, an operator and manager of freestanding imaging and radiation centers. This firm took in $12 million last quarter from investors Halpern Denny & Co. and MedEquity Investors, Growthink says.