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Startup Health Insights Midyear Venture Funding Report

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Report covering all fundraising activity amongst digital health startups and investors

Report covering all fundraising activity amongst digital health startups and investors


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  • 1. StartUp Health Insights: 2014 Midyear Report © 2014 StartUp Health, LLC A StartUp Health Insights Report Visit startuphealth.com/insights for more funding data Published: July 2, 2014
  • 2. Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC DIGITAL HEALTH CONTINUES TO ACCELERATE 2 Funding into the digital health sector continues to accelerate, with the first half of 2014 already surpassing total funding in 2013. There were 248 deals in the first half of the year, raising a combined total of $3.3 billion. Interesting trends to pay attention to for the rest of the year and beyond: ! • Deal Size: Investment size continues to increase and while the IPO market is early, we are starting to see liquidity events for investors. • Regional Funding: While the largest sources of capital are still the Bay Area, NYC and Boston, startups are launching and receiving funding all over the country (and world). StartUp Health company Aver Informatics out of Columbus, OH, recently raised $8.5 million from Columbus-based Drive Capital and GE Ventures. • Global Innovation: There are over 5,000 startups across the globe that are developing novel technologies in digital health based on data from the StartUp Health Network. The StartUp Health Academy is no exception to global innovation, with 71 companies from 7 countries. • New Entrants: Samsung, Google and Apple have all recently announced major health technology initiatives. This will further accelerate innovation and investment activity in the digital health sector with new applications and devices that can further leverage the platforms. • Wave of Active Health Consumerism: As a result of high-deductible plans, price transparency and new market solutions, populations are becoming more informed and empowered. • Consolidation: Massive consolidation of healthcare systems and providers markets is expected.
  • 3. Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC Funding($B) $1B $2B $3B $4B Deals 150 300 450 600 2010 2011 2012 2013 1H 2014 Deals Funding $3.3B$2.8B$2.2B$1.6B$1.1B 248 580 447 242 142142 242 447 580 248 Funding in digital health continues to accelerate, with 1H 2014 surpassing total 2013 funding DIGITAL HEALTH DEALS & FUNDING 3
  • 4. Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC Funding in the New York metropolitan area nearly tripled from 1H 2013 to 1H 2014, as regional startup ecosystems develop across the nation MOST ACTIVE U.S. REGIONS IN 1H 2014 $712M $501M $326M $121M $100M $113M 4
  • 5. Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC FUNDING IN TOP MARKETS 1H 2014 Many of the top funded markets in 1H 2014 already surpassed funding totals for 2013 5 Funding($M) $275M $550M $825M $1,100M $380M $478M $716M $925M $1,037M Big Data & Analytics Navigating the Care System Practice Management Diagnostics Consumer Health *Denotes percent growth from market funding in 2013 +54%* +89%* +114%* +38%* —
  • 6. Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC Practice Management ! $550M* LARGEST DEALS IN 1H 2014 Clinical Decision Support ! $135M Care Management ! $130M Population Health ! $125M Sensors ! $120M Diagnostics ! $105M Big Data ! $100M Workflow Systems ! $89M Insurance Provider ! $80M Practice Management ! $78M *Strategic growth equity investment 6 Genomics ! $70M Benefits Management ! $67M Clinical Trial Support ! $61M Physician Collaboration ! $54M Practice Management ! $51M
  • 7. Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC 2010 2011 2012 2013 1H 2014 0% 25% 50% 75% 100% Seed Series A Series B Series C Series D Series E Series F Mid-stage* deals show consistent growth year-over-year, as 30% of companies receive follow-on funding in 1H 2014 DEALS BY STAGE 7 *Mid-stage deals include Series B and Series C
  • 8. Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC $0M $4M $8M $12M $16M 2010 2011 2012 2013 1H 2014 MEDIAN ROUND BY STAGE 8 -27% 61%79%4%83% Seed Series A Series B Series C Series D CHANGE IN MEDIAN DEAL SIZE FROM 2013 There was an 83% increase in the median size of seed deals between 2013 & 1H 2014
  • 9. Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC MEDIAN DEAL SIZE 9 $1M $2M $3M $4M $5M 2010 2011 2012 2013 1H 2014 MEDIAN DEAL SIZE BY ROUND $8.0M$15.0M$12.2M$4.0M$1.2M Seed Series A Series B Series C Series D Total median deal size in 1H 2014 increased by 150% since last year
  • 10. Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC MOST ACTIVE VCs IN 1H 2014 6 5 5 4 4 4 4 10 Number of Deals 10 VCs 26 VCs 3 2 120 VCs 1
  • 11. Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC DIGITAL HEALTH IPOS IN 1H 2014 11 Practice Management ! $75M Big Data ! $1.3B Consumer Health ! $110M Benefits Management ! $177M
  • 12. Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC STARTUP HEALTH PORTFOLIO NOW 71 COMPANIES ACQUIRED COMPANIES 24 companies added during 1H 2014 12
  • 13. ABOUT STARTUP HEALTH StartUp Health, a global startup platform accelerating innovation in health and wellness, represents a new model for helping entrepreneurs succeed in the health sector. StartUp Health is on a mission to inspire, educate and help 1,000 health startups to reimagine and transform healthcare over the next decade. ! StartUp Health was founded by health tech entrepreneurs Steven Krein and Unity Stoakes and is chaired by former Time Warner CEO, Jerry Levin. The organization’s investors include leading health, technology, and business minds, including Steve Case, Mark Cuban, Esther Dyson, Roger Ehrenberg, Brad Feld, Richard Forman, Jason Finger, Linda Holliday, Jon Kaplan, Howard Krein, MD, PhD, Jon Miller, Jeff Stewart and Wayne Kimmel. ! Learn more and apply at startuphealth.com/apply and follow @startuphealth. ! ! ! ! ! ! ! ! 
 
 Report authored by: Kiyan Rajabi, Tanner Yager and Brian Edwards 13
  • 14. StartUp Health Insights: 2014 Midyear Report © 2014 StartUp Health, LLC A StartUp Health Insights Report Visit startuphealth.com/insights for more funding data Published: July 2, 2014