Looking for Funding? Venture Capital Firms Tap into Medical Mobile App Market

by Holly Shoemaker

As the mobile medical app market continues to grow, developers need to find new ways to generate revenue streams. Recent reports indicate that developers may find venture capital firms willing to invest.

The National Venture Capital Association reported that from 2010 to 2011, investments in health IT companies increased by 78 percent. Mercom Capital Group estimated in Q1 2012, firms put in $184 million for 27 deals. This was the highest number reported since Mercom began collecting data in 2010.

Potential Roadblocks

For those developing apps to use as medical devices, the increasing regulation from the Food and Drug Administration (FDA) poses the greatest risk when it comes to receiving funding. While venture capitalists are embracing the healthcare market, they do not want the long development cycle to delay receipt of profits. To overcome the potential roadblock, developers should ensure they work with the latest guidelines from the FDA. Happtique, an app store dedicated to healthcare apps, provides easy-to-follow guidelines to ensure developers follow all stakeholder concerns.

Concluding Thoughts

 

While medical apps account for approximately one to two percent of the app market, the segment continues to grow faster than other areas. As more consumers look to medical mobile apps, and medical professionals continue to find ways to tap into the growing market, seeking out venture capital firms may assist developers in finding needed revenue.