Healthcare Tech Investments Stayed Steady Through Crisis
March 21, 2014
Many people have something to say about the U.S. and Canadian healthcare systems. What either system will look like in five, ten or twenty years is anyone's guess. But there should be at least one improvement in both that will bring future nods of approval, namely the digitalization of a large swath of the system.
Private equity investment in the U.S. and Canadian healthcare technology systems sector has gradually ramped up over the years. In fact, unlike many other sectors, the healthcare tech space was not hit hard by the financial crisis, at least not in terms of deal count. According to the PitchBook Platform, activity only slowed to 28 deals in 2009 from the 32 recorded in 2008 and ramped right back up to 32 in 2010. The 41 deals completed in 2012 almost doubled the 21 recorded during the buyout boom in 2007.
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Taking a look by subsector, companies focused on healthcare enterprise systems have taken in the most PE investments since the start of 2006, at 45% of the deal activity. Medical records system providers came in second, bringing in 23%.