The number of U.S.-based venture-capital investments in healthcare information technology companies held steady in the third quarter compared with 2010's third quarter, but the total value of the investments increased 13.7%, according to figures released by Dow Jones VentureSource.
Value of investments in healthcare IT companies rise
U.S. venture capitalists funded 24 healthcare IT deals in both quarters. The value of those investments was $207 million in 2011 versus $182 million in the year-ago quarter.
For the first time since 1998, venture capitalists poured more money into medical devicemakers than biopharmaceutical makers in a quarter, according to the Dow Jones figures. Medical device-deal activity increased 15%, to 68 deals, for a total value of $857 million, a 30% increase. Biopharmaceutical makers raised $715 million through 78 deals with venture capital firms, compared with 71 deals and $865 million in the year-ago quarter.
U.S. venture capitalists invested $1.9 billion, an 11% decline, across the healthcare sector as a whole, on 184 deals, a 9% increase, comparing the figures with the year-ago quarter.
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.