A huge surge of venture capital investment into health-care IT companies shows no sign of slowing as companies scramble to exploit potentially big money-making opportunities offered by Obamacare and inefficiencies in the nearly $3 trillion health system.
"Where entrepreneurs go, venture capital follows. Obamacare is the blueprint, it is the road map for entrepreneurs to take advantage of fundamental change and disruption in the health-care sector," said Steve Kraus, who leads health-care investing activity at Bessemer Venture Partners.
"It's big dollars going into health-care IT," Kraus said. "I think it's going to be a long bull run."
Another investment company, Rock Health, recently reported that venture capital funding to health-care information technology companies for 2014 reached $2.4 billion year-to-date, blowing past the $1.9 billion that was invested in that sector in all of 2013.
And this year's year-to-date level is more than 10 times the nearly $200 million that was invested in health-care IT in 2007.
"Health-care IT over the last two years has been the most popular sector for venture dollars," Kraus said.