Q1 2021 Health IT/Digital Health PC/VE, M&A, IPOs/ SPACs Activity

The first quarter of 2021 has been one of investor optimism as the vaccine rollout continues ahead of expectations and economic activity begins to accelerate in response.  Within the Health IT industry, the already strong investment and M&A trends seen in 2020 have only accelerated.  Over the course of the quarter, we observed $7 billion in private equity and venture capital investment across 158 companies.

By comparison, Q1 of 2020 saw $3.2 billion and 127 investments.  Health IT M&A activity has also been strong in the first quarter, with 114 transactions observed compared to just 88 in Q1 of 2020.  The gradual loosening of pandemic restrictions and government stimulus both promise to continue to fuel this strong market activity into Q2 and into the future.