Wearable devices helped fuel an appetite for mobile healthcare and consumer health deals, according to a report by CB Insights tracking venture capital dealflow in the first quarter. These mobile health deals accounted for about $100 million invested in companies such as Augmedix and Advanced Health.
By CB Insights’ reckoning, $1.9 billion was invested across 131 deals in healthcare in the first three months of the year, higher than the $1.49 billion raised in the same period last year.
It’s probably a good time to note that healthcare is pretty loosely defined as biotech, medical devices, drug delivery, diagnostics, and medical equipment and supplies, among other things. Health and Wellness, on the other hand, is more closely aligned to consumer health.
Although California, Massachusetts and New York held a tight reign on deals in mobile companies, accounting for 71 percent of those deals, California’s grip has slackened on healthcare deals. That’s led to an interesting shift for states that are benefiting from that change. About 44 percent of dealflow took place outside traditional technology centers compared with 36 percent for the same time last year. Texas, at 8 percent, surpassed the percentage of dealflow it held last year. At 22, Austin had the lion’s share of deals (Dallas and Houston tied for second with four deals apiece). That doesn’t come as a huge surprise to anyone that’s been there in the last couple of years as technology companies gravitate to the state capital and construction to provide more office space continues.
Other states that benefited from the shift included North Carolina, Pennsylvania, and Georgia.
Healthcare accounted for 28 percent of VC deals, trailing Internet deals, which held 31 percent. Early stage deals, particularly for the Series A round, dominated and accounted for 31 percent of deals. Mid stage Series C deals increased and late stage transactions declined.
