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Web 3.0 & Online Health (Part 5)

Posted on Friday, Aug 24th 2007

M&A and VC activity

Increased traffic and stickiness of online health sites have led to a number of deals in the current year.

In July 2007, NBC Universal and GE Commercial have jointly invested $25 million in Healthline, a fast growing health vertical.

In June 2007, Meredith, a leading media and marketing companies acquired Seattle-based Healia, a consumer health search engine.

In June 2007, ConnectivHealth acquired Nashville-based Relegent, which delivers online health care information to the hospital and education industries.

In May 2007, acquired UCompareHealthCare, a healthcare ratings and compare site for $2.3 million. The deal is believed to have boosted page views and revenue growth of

In February 2007, Microsoft acquired Medstory, a healthcare search engine. Last year, it acquired Azyyxi, a consumer health portal.

Amongst earlier deals, in March 2005, WebMD acquired HealthShare Technology for $36 million. HealthShare is a supplier of decision support tools that assist in the evaluation of hospital care and quality.

In January 2005, iVillage acquired Healthology, a physician generated content supplier for $17.2 million cash and stock deal.

ConnectivHealth is funded by Petra Capital Partners of Nashville, Chrysalis Ventures of Louisville, Ky., and Scott McQuigg. ConnectivHealth recently raised $2.1 million in VC funding from these VCs.

DailyStrength, a Santa-Cruz, Calif. based social network that connects people through their health problems, has recently closed its first round of venture financing with Redpoint Ventures.

In February 2007, PatientsLikeMe, a health care social networking site raised $5 million in Series A round financing. CommerceNet, Omidyar Network, Collaborative Seed and Growth Partners, LLC and Invus, LP funded the site.

Trusera raised $2 million in seed funding from Seattle venture firm Benaroya Capital, along with TerraPass chief executive Erik Blachford, Ackerly Partners’ Christopher Ackerley, executive Kim Rachmeler and Washington Mutual’s corporate development executive, Craig Tall.

The above deals clearly indicate the appetite for online health sites among the large media and Internet companies.

According to an October 2006 study by the Pew Internet & American Life Project, 8 million people in the United States go online for health information every day, and 53% of health-seekers said that a recent search had an impact on how they take care of themselves or their dear ones.

The fact that online health is big can be gauged from the fact that the US healthcare spending is expected to reach $4 trillion by 2015 and with the baby boomers turning 60 in the next few years this could mean a huge opportunity for the major media and internet companies.

Online health has emerged as a major Internet category and health-related start-ups are being launched every other day. There are many niches yet to be filled, and entrepreneurial opportunities abound.

[Part 1]
[Part 2]
[Part 3]
[Part 4]

This segment is part 5 in the series : Web 3.0 & Online Health
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Hi Sramana,

I enjoyed reading your last post about online consumer healthcare. I believe you covered all the major players except us 🙂 I’m the co-founder of iMedix – a community powered health search engine. We have a fast growing community of patients that can find and share health information with one another and an exceptional technology . I’d love to hear your feedback and discuss this rapidly growing industry. Please send me your contact info and I’ll touch base.



Iri Amirav Saturday, August 25, 2007 at 6:40 AM PT

Question: If depression is the health condition the largest number of people look for, why isn’t it the most searched for term?

See below:

Consumers seek online healthcare information mostly for specific health conditions, including depression (2.9 million unique visitors), bipolar disorder (1.8 million unique visitors), and insomnia (1.7 million unique visitors).

In Q1 2007, the top health-related search keywords were “pregnancy”, (was entered more than 17 million times), followed by “cancer,” “flu,” and “fitness,” each of which generated at least 15 million searches.

Lisa Gualtieri Wednesday, March 3, 2010 at 7:09 AM PT