Venture Capital Healthcare Technology Investment

Venture Capital Funders Looking to Healthcare Technology Firms for Next Round of Profit

Reuters reports that healthcare technology firms are the target of venture capital funders because they see healthcare tech firms as a reliable path to profits.  Reuters reports:

Some of the best-known technology investors are looking beyond their tried-and-true Internet plays to bet on health care data as the next growth market. Venture capital firms and portfolio managers of large mutual funds are among those investing in companies that gather and analyze healthcare data, all in hopes of tapping into the shift to electronic record keeping and consumer acceptance of personal health tracking devices. Unlike biotechnology firms, which are often hit-or-miss based on the success of drugs under development, investors say these health technology firms tend to have a reliable path to profits by selling services and data to insurance companies, doctors and hospitals. Overall, venture capital funding for health care technology firms is up 176 percent so far this year, at $2.3 billion, versus the same period last year, according to Rock Health, a San Francisco–based seed funding firm. Most of the funds have gone to companies focused on payment management and data analytics (Randall and Farr, 9/3)