Health IT companies are raking it in, flush with revenue from the sales of electronic health records as well as inflows of venture capital, according to the latest quarterly report from Dow Jones VentureSource.
Even though overall venture investments fell 18 percent in the first quarter compared with the same period in 2011, investment in health IT companies soared 75 percent, VentureSource reports in a news release. Total venture capital raised in 18 health IT deals was $102 million.
The four health IT companies attracting the most venture capital, according to Forbes.com, were:
- Kinnser Software of Austin, Texas, which raised $40 million from Insight Venture Partners. The company makes management software for home health businesses.
- PerfectServe of Knoxville, Tenn., which raised $10.9 million from Piper Jaffray and several other investors. PerfectServe's products help clinicians to communicate.
- Truveris of New York City, which raised $10 million from New Leaf Venture Partners and others. The company's products manage pharmacy benefit plans and track claims.
- TigerText of Santa Monica, California, which raised $8.2 million from investors led by Easton Capital and New Science Venture. It sells a secure mobile messaging product.
IT companies, on the other hand, managed increases in both the money raised and the number of deals -- the only major industry sector to do so, VentureSource says. IT companies raised $2 billion in 257 deals, 14 percent more than the same period last year. Software was the strongest IT sector.
VentureSource reports are available only to registered users.