Could healthcare be the next windfall for tech funds?

Could healthcare be the next windfall for tech funds?

According to Scott Wolf, CEO of Grace Century, “With demographics in favor of the healthcare sector, and technology moving in favor of health related ventures, venture capitalists smell blood. The one thing they never tell you is that when it comes to a pure start-up, it is very difficult to get funding after the ‘dot-com debacle’ –and that is without giving away a major piece of the pie.?

In quest for next windfall, tech funds look to healthcare

By By David Randall and Christina Farr | Reuters ? Wed, Sep 3, 2014

Venture capital firms and portfolio managers of large mutual funds are among those investing in companies that gather and analyze healthcare data, all in hopes of tapping into the shift to electronic record keeping and consumer acceptance of personal health tracking devices. Unlike biotechnology firms, which are often hit-or-miss based on the success of drugs under development, investors say these health technology firms tend to have a reliable path to profits by selling services and data to insurance companies, doctors and hospitals.

Mount Sinai Hospital is pictured in the Manhattan borough of New York August 4, 2014. REUTERS/Carlo Allegri Mount Sinai Hospital is pictured in the Manhattan borough of New York August 4, 2014. REUTERS/Carlo Allegri

Read the article on Yahoo! News.