Healthcare startups have gained significant portions in terms of value and number of deals
Healthcare startups cornered 73 deals amounting to $113.45 million, out of the $397.41 million deals so far this year, according to News Corp VCCEdge Healthcare Sector Funding insights.
“The year 2016 so far has registered 88 funding deals amounting to $397.41 million. This includes 54 angel/ seed deals worth $11.19 million, 23 venture capital funding deals worth $155.83 million
and 11 private equity deals amounting to $230.39 million,” the report said.
Since 2012, the sector has witnessed 558 funding deals to the tune of $5,657 million. Startups in the healthcare space have received funding worth $735 million from 336 deals since 2012.
So far this year, there were 13 series A funding deals worth $45.33 million and six series B deals worth $56.92 million, while startups with consumer-centric digital modes of service delivery have raked in $77.3 million so far this year.
The report further noted that eHealth players like online pharmacies and aggregator portals topped in terms of deal volume with 35 deals worth $50.96 million.
Biotechnology attracted the top private equity and venture capital deals so far in 2016 with Quadria Capital’s investment of $70.27 million in Concord Biotech. Other top private equity deals during the year were in the healthcare facilities and services space such as that of ADV Opportunities Fund I LP investing USD 45 million in Dr Agarwal’s Health Care and TPG Growth Equity III LP investing $33 million in Cancer Treatment Services International.
“Startups and investors alike see a huge opportunity in the demand and supply gap that exists in the Indian healthcare sector both as social cause and a business case,” Nita Kapoor, Head – India New Ventures, News Corp and CEO, News Corp VCCircle said.
Kapoor further noted that while startups with consumer-centric business models and digital modes of service delivery such as facilitating doctor appointments, efficient information management system and online pharmacies have been attracting investor interest, trends suggest that there will be money backing for those startups focusing on corporate tie-ups, medtech, virtual diagnostics and preventive care.
EH News Bureau