According to global communications and consulting firm Mercom Capital Group, VC funding in the sector in the April -June quarter increased 104 per cent when compared to the January-March quarter of this year.
"It was a quarter of several milestones. It was the first billion dollar fundraising quarter for the Healthcare IT sector which has now raised almost USD 7 billion in venture funding since 2010,"Mercom Capital Group CEO and Co-Founder Raj Prabhu said.
The total corporate funding in the Healthcare IT sector, including VC, accelerator/incubator, debt, and public market financing, in Q2 2014 came in at a whopping USD 3.3 billion globally.
The notable Indian transaction this quarter was, 2mpower Health Management, raising an undisclosed amount from former Infosys Director TV Mohandas Pai and former Infosys Chief Technology Officer Sharad Hegde.
Healthcare IT sector saw 57 M&A transactions in the second quarter of this year, out of which the health information management companies saw the most M&A activity this quarter with 20 transactions.
Revenue cycle management and service providers cornered 11 transactions each, and mobile health and personal health companies with six transactions each.
"M&A deals were also at their highest levels this quarter, while Mobile Health companies continued to out-raise other technologies," Prabhu added.
Meanwhile, announced debt and public market financing in Healthcare IT amounted to USD 1.5 billion in five deals in Q2 2014, compared to USD 343 million in six deals in Q1 2014.
There were two Healthcare IT IPOs in Q2 2014, bringing in a combined USD 1.4 billion.