HGP surveyed hundreds of private equity funds across all stages and received 105 responses. Responses concentrated toward Growth Equity and Venture Capital investors, who respectively invest in early and earlier stage companies. The distribution of responses across the stages of investing is consistent with the distribution of investment activity across the company lifecycle. The majority of institutionally funded health IT companies are receiving venture and growth investments, with relatively fewer buyout transactions. This investment distribution pattern is consistent across almost any growth industry.
It is important to note that our survey likely has selection bias, which we cannot fully assess given the confidential nature of the survey response data. Anyone with a propensity to respond to a survey about investing in health IT is likely to have stronger interest in health IT than those who did not respond to the survey. Furthermore, we are more likely to generate responses from individuals who are familiar with HGP, and HGP generally interacts with investors interested in health IT transactions. It is safe to conclude that our survey findings have a bias toward respondents who are more interested in health IT investments than not. However, we believe that the data set is broad enough to be meaningful and deliver insights, particularly in mapping out the priorities and criteria of active health IT investors.
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