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Rock Report: State of Digital Health
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Rock Report: State of Digital Health






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  • Full Name Full Name Comment goes here.
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  • 13-

    Venham conferir o AS NOVIDADES DO SERVIDOR de MU online JOGANDO.NET : www.jogando.net/mu
    NÃO PERCA O novo site de Animes Cloud : http://www.animescloud.com/ com mais de 20.000 videos online.
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    By: MissDeath
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  • Very good report!
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  • Christine @ http://healthpathtoday.com
    Thanks! I really enjoyed this presentation. I'm trying to keep up with up and coming changes in the health/wellness field and these stats are helpful.
    Keep me posted!
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  • Thanxx for sharing. We'll love to add next time our european experience that is moving to US.
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  • Hi Rock Health,

    Nice to see the results after participating in the study. I'm curious of other's thoughts on why the freemium business models seem to attract so much funding. Also - it would be nice to know who the leaders are in terms of writing the first checks for seed stage deals. I'm only aware of two seed deals this year - Genomera and MassiveHealth.

    Alice Rathjen, Founder
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Rock Report: State of Digital Health Presentation Transcript

  • 2. About us Rock Health is powering the future of the digital health ecosystem, bringing together the brightest minds across disciplines to build better solutions. Rock Health funds and supports startups building the next generation of technologies transforming healthcare. About this report We wanted to know more about VC funding and entrepreneur perspectives of the digital health space. This report sources data from Capital IQ, CrunchBase, NVCA and a survey we conducted with 110 digital health entrepreneurs. Caveat: we are not professional white-paperistas, just curious advocates who like to share knowledge and further the discussion around the evolving digital health space.
  • 3. Part one VC-funded digital health companies in 2011 Sourced from Capital IQ, NVCA + CrunchBase
  • 4. VC funding of healthcare technology segment 0 1 2 3 4 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 % of # of VC deals % all VC funding ($) Source: Capital IQ
  • 5. 77% of VCs think healthcare IT investment dollars will increase in 2011 Source: 2011 Venture View Predictions Survey by NVCA and Dow Jones VentureSource
  • 6. 35 digital health companies have received $2M+ in 2011 Digital Health companies receiving $2M+ in financing in 2011 Source: Capital IQ + CrunchBase
  • 7. 20% 29% 51% The majority of these companies are building B2B businesses Businesses/Health Orgs (B2B) Consumers (B2C) Medical Professionals (B2Dr) Target User:
  • 8. What are they building? Consumer Web Sites Personal Health Monitoring Data Analytics Data Sharing Physician Social Networks 0 1 2 3 4 5 Themes of the 35 digital health companies receiving $2M+ in financing in 2011
  • 9. consumer web Common theme #1 “Health Guru is the web's leading destination site for health information videos.” “Personalized, engaging health information, from leading medical experts and similar community members, that’s easy to understand and all about you.” “Play games to train your brain.” “Your child's health and development anytime, anywhere you want.” “An interactive platform that provides expert health information and allows you to ask questions and get answers from trusted healthcare experts.”
  • 10. personal health monitoring Common theme #2 “The most accurate heart rate monitor for smartphones.” “Daily health monitoring service to help reduce falls, monitor heart rate and breathing rate, reduce the risk of bedsores and help manage chronic diseases without attaching anything to the monitored person.” BAM Labs “Track your caloric burn, activity levels, and sleep habits to make every day your best day.” “Healthrageous delivers on the promise of improved, sustainable health by analyzing data collected from biometric measurement devices with our expert system in order to provide you with the personalized support and inspiration necessary for a lifelong journey of wellness.”
  • 11. data analytics Common theme #3 “Explorys enables the discovery of critical correlations, trends, and outcomes across millions of patients, clinical records, and diverse environments” “Humedica is a next-generation clinical informatics company that provides novel business intelligence solutions to the health care industry.” “Kyruus's data-driven products arm users with curated, comprehensive, up-to-date information and intuitive analytics. We help organizations assess and predict the risk, value, and opportunities that characterize their ubiquitous interactions with physicians across the entire healthcare value chain.”
  • 12. data sharing Common theme #4 “Axial solutions provide clinical data sharing to save time and money across the healthcare delivery network -- for hospitals, physicians, research organizations, and health plans.” “Resilient Network Systems' new class of Internet servers extends the reach of the Internet to protected data and application content by introducing new methods of establishing trust and giving owners customized control over how their content is used.”
  • 13. physician social networks Common theme #5 “Sermo is an online physician-only network for discussion about clinical issues, health care reform, practice management and more.” “Doximity is a professional networking tool exclusively for Physicians and health care professionals.”
  • 14. Locations of 2011 VC-backed digital health companies California - 11 Massachusetts - 5 New York - 3 Companies receiving $2M+ in financing in 2011
  • 15. Which VCs funded them?* *non-exhaustive list
  • 16. Largest Deals of 2011 software for healthcare and insurance delivery $61M from Camden Partners and Kleiner Perkins Caufield & Byers software for cognitive enhancement $32.5M from Menlo Ventures, FirstMark Capital, Harrison Metal Capital, Norwest connecting providers and Medicare $27M from Bain Capital Ventures and Lemhi Ventures web-based EMR $23M from Founders Fund, Artis Capital Management, Glynn Capital, Morgenthaler, Felicis
  • 17. Part two Survey of 110 early-stage digital health entrepreneurs
  • 18. We surveyed 110 early stage digital health entrepreneurs • 84% said they were bootstrapping their venture • 13% have angel funding, and only 2% had VC funding • 60% have had less than $50K in funding funding stage of respondents < 6 months 6 months - 1 year 1 -2 years 2-3 years 3-4 years 5+ years 0% 10% 20% 30% 40% age of company
  • 19. What is your background? Entrepreneur/Business 43% Engineer/Developer 27% Medical Professional 13% Designer 5% Scientist 5% Other 6%
  • 20. What motivated you to start your venture? “I want to make the world a healthier place.” “Just a consumer who saw a very broken system and wanted to fix it.” “From what I’ve seen, very few people in health tech are innovators. It’s boring out there.” “We saw first-hand some of the care that patients were getting at top medical facilities. The lack of focus on the patient was appalling, so we decided to grab the bull by the horns.” “Love.”
  • 21. How challenging are these barriers for entrepreneurs in the digital health space? Funding Establishing Sustainable Revenue Model Talent Acquisition Navigating Government Regulation Access to Medical Expertise Access to Technical Expertise 0% 2,000% 4,000% 6,000% 8,000% 10,000% Almost 100% of respondents identified funding as a somewhat or very challenging barrier. 20% 40% 60% 80% 100% Somewhat Challenging Very Challenging
  • 22. How will your venture make money? Subscription Model Charging Consumers Directly Charging Medical Professionals Product Purchase Ad Model Other In-App Purchase 0% 9% 17% 26% 34% 43% 51% 60% Respondents were able to select more than one checkbox, so percentages add to more than 100%.
  • 23. Who pays for your product or service? Consumers Other Hospitals Insurers Employers Advertisers 0% 10% 20% 30% 40% 50% 60% 70% The majority of digital health entrepreneurs surveyed think consumers will pay for their product or service. Less than a third think insurers will pay.
  • 24. Key Findings From Capital IQ + CrunchBase: VC interest in digital health is skyrocketing, and 2010 was a record year for health technology as a percentage of all VC funding. The number of healthcare technology deals more than doubled from 2005 (52) to 2010 (138). 35 digital health startups have received $2M+ in 2011 so far. Rock Health survey findings: The #1 challenge for digital health entrepreneurs is fundraising. Early stage digital health entrepreneurs are building B2C companies... despite the majority of VC dollars going to B2B ventures. Entrepreneurs identified subscriptions as the most popular revenue model. The majority of digital health entrepreneurs think consumers will pay for their product or service. Less than a third think insurers will pay.
  • 25. Want more? List and details of the 35 digital health companies funded in 2011: http://bit.ly/VentureFunded2011 List of 200+ digital health startups: http://rockhealth.com/resources/digital-health-startup-list/ Entrepreneur? We still want to hear from you! Take our survey: http://bit.ly/healthstartup
  • 26. get in touch info@rockhealth.com