Summary of 2012 deals, companies and investors in digital health. Updated on January 8th to reflect additional funding from 2012 and a change to the largest deals of the year. Second update on January ...
Summary of 2012 deals, companies and investors in digital health. Updated on January 8th to reflect additional funding from 2012 and a change to the largest deals of the year. Second update on January 19th with the release of full year (2012) venture capital data from PwC MoneyTree.
Jessica SpaldingI'm using http://jingbox.com/five/ for my slideshares2 months ago
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Nikolai Bratkovski, CEO & Co-Founder at HealthAwareIt would be great to see some M&A reports for this space. From what I see, there are not as many transactions yet, since the space is very young, but it's time to start tracking3 months ago
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Philippe ChauvetExcellent view of the US market place. Same view would be of interest on the European market ! On our side we see things moving as well with a great involvement of the State in the financement of projects - e-santé in France, European commission as well3 months ago
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Brian Ascher, partner at VenrockThere was also a significant and successful Healthcare IT IPO in 2012: Vocera (NYSE: VCRA). They also raised a successful secondary offering in 2012. They would fit in your Hospital Administration category and the roughly $200MM these two offerings raised is 2.6x the size of all the private financings in this category combined. They are based in Silicon Valley and used by over 800 hospitals and 500,000 hospital staff members on a daily basis.4 months ago
2012 Digital Health Funding Report by @Rock_HealthPresentation Transcript
20 13 2014 2015 0 1 2 20 16 211 2020 71 DIGITAL HEALTH 20 18 FUNDING 2019 YEAR IN REVIEW 2020
About this For our 2012 Year End Funding Report, we have compiled more data than ever before so you can get a better look into digital health funding. The findingsREPORT reinforce our positive outlook and excitement for the potential of technology to transform healthcare. This report sources data from Capital IQ, SEC, company websites, CrunchBase, NVCA and the Rock Health funding database. Produced by With help from: Edison Chang, NEA Malay Gandhi Halle Tecco Nick Mathers, KickLabs @mgxtro @halletecco Amy Puliafito, Rock Health Rock Health is a nonprofit foundation focused on the intersection of healthcare and technology. We support the next generation of health entrepreneurs through a startup accelerator, open-source research, and public events. Rock Health partners include Aberdare Ventures, Accel Partners, Genentech, Harvard Medical School, Kaiser Permanente, Kleiner Perkins Caufield & Byers, Mayo Clinic, Mohr Davidow Ventures, Montreux Equity Partners, NEA, Nike, Qualcomm, Silicon Valley Bank, UnitedHealth Group, and UCSF. For more information, visit rockhealth.com
$1,413 VC funding of digital health 2012 $1,289 grew significantly in 2012 $1,115 $1,209 Cumulative funding in millions $1,029 $968 $797 $765 $810 2011 $740 $583 $638 $581 $356 46% more money $459 $269 $390 $229 56% more deals $305 $250 $69 $167 compared to 2011 $47 $5 January February March April May June July August September October November DecemberNote: only includes companies that received $2M+ in venture funding
Digital health funding has grown in the face ofdeclining investment in traditional healthcareYoY change in funding (2012 versus 2011) -10% All sectors Tech Software +10% Digital health +46% -15% Biotechnology -13% Medical devices Healthcare Source: PwC Money Tree (updated from previous version on 1/19/2013 to reflect full year data versus TTM through Q3 2012)
134 digital health companies each raised $2M+ in 2012
Four common themes representing more than1/3 of all deals emerged during 2012 Personal health tools and tracking Health consumer engagement $150M Tracking individual health with products and tools $237M EMR / EHR Helping consumers with $108M Hospital administration healthcare purchases Capturing clinical information and surround applications $78M Managing the business of a hospital
More than half of the deals in 2012 were rounds of $5M or greater Number of deals by amount raised (in millions) 75 Series A: $3.8M Median raise All deals: $6.0M 50 Series B: $8.4M Series C: $10.5M 25 Series D or higher: $19.0M $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 $100Note: only includes companies that received $2M+ in venture funding
The largest five deals of 2012 represent morethan 20% of the entire year’s funding $100M enables employees to compare costs T. Rowe Price, Redmile Group and quality of healthcare services $58M making the human genome searchable Google Ventures, NEA $50M health insurance comparison website Norwest Equity Partners $50M Institutional Venture Partners, online marketplace for families to find Matrix Partners, NEA and caregivers Trinity Ventures $45.5M arms employees with access to expert Brown Brothers Harriman physicians to help make decisions
A strong funnel of deals has formed in the space, potentially leading companies to IPO Deals by series (2012) Interwest Partners asked: Who will be the next digital health company to IPO? Top 3 companies identified by respondents Raised $34M Series C 43 34 16 11 Raised $100M Series D Raised $75M Series C (2011) A B C D or higherNote: only includes companies that received $2M+ in venture funding
While 179 organizations invested in digital health companies, most only did a single deal Number of deals by each investor (2012) 6 # of deals 5 4 3 2 1 0 8 34 179Note: only includes companies that received $2M+ in venture funding investors
Just eight investors made three or more digital health investments in 2012 Qualcomm Ventures Aberdare Ventures Merck Global Health Innovation Fund NEA West Health Investment Fund BlueCross BlueShield Venture Partners Council Capital Khosla VenturesNote: only includes companies that received $2M+ in venture funding
The hubs for digital health investment have been established in the Bay Area and Boston Total funding by state (2012) 20 5 27 7 5 # of deals No investment 7 6 >$0-25M >$25-100M 5 >$100-250M 5 >$250MNote: only includes companies that received $2M+ in venture funding
Also, some notable startups have raised seed funding during 2012 $1.3M connects parents with their children’s Undisclosed doctors $1.0M brings trainers and clients together for KPCB, MDV, Aberdare, Mayo, training sessions over live, two-way videoMorado, S-Cubed, Rock Health $900K connects people with mental health providers for online counseling & psychiatry Keith Rabois, angels “Six Figures” mobile platform for first responders and Dalmore Investments the hospitals they serve
Funded digital health companies havesignificant talent needs 600+Distribution of digital health companies by size (employees) total positions are open across the companies50% Other40% Sales / 10% Engineering Acct Mgmt / IT 12% 33%30%20% 13% Product / Marketing10% 32% Business / Ops 1-10 11-50 51-200 201-500 number of employees Source: LinkedIn, company websites (as of December 21, 2012)
Women remain underrepresented as CEOs of digital healthCEO gender 7% companies CEO educational background Bachelors 37%93% MBA 32% Masters 15% PhD 8% MD 5% JD 3%
Venu Prasad Menon
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