Digital Health
Insights for the 50+ Market
2013 Annual Report
startuphealth.com/insights

Published: January 14, 2014

A R...
Digital health and wellness investments have
rapidly expanded from $999M in 2010 to $2.82B
Deal count more than quadrupled...
Early stage innovation is the
Change: Healthcare Reform
primary growth driver because Technology: Mobile & Digital Health
...
Opportunities
in the
50+ Market

Vtial Sign
Monintoring

Emergency Detection
and Response

Aging with
Vitality

Traditiona...
Funding in the 50+ market rose 33%
from $722M last year to $1.15B in 2013
Deal Count

Total Funding
$1,000M

300

248
$750...
Early-stage deal count in 50+ market grew
more than seven-fold from 25 in 2010 to 183
in 2013
Deal Count

$406M

Total
Fun...
The 50+ market continues to grow
at the pace of the digital health and
wellness market

Total Funding

$626M

$1.15B

$722...
Stage distribution of 50+ market deals and
funding mirrors industry-wide activity
2013 Digital Health  Wellness

2013 50+ ...
2013 Notable VCs by stage in 50+ market
denotes 3+ investments

SEED

SERIES A

SERIES B

SERIES C

SERIES D

SERIES E

8
...
Social Engagement

2013 Activity

Third highest year-over-year growth in median size
deal value at 120%
Deal Count

31
27
...
Medication Management

2013 Activity
Early-Stage
Mid-Stage
Venture-Stage

Newest market opportunity in 50+ Market
Deal Cou...
Emergency Detection and Response

2013 Activity
Early-Stage
Mid-Stage
Late-Stage

Second highest proportion of early-stage...
Behavioral and Emotional Health

2013 Activity
Early-Stage
Mid-Stage
Venture-Stage

Highest proportion of early-stage deal...
Physical Fitness

2013 Activity
Early-Stage
Mid-Stage
Late-Stage
Venture-Stage

Second highest proportion of earlystage de...
Diet and Nutrition

2013 Activity
Early-Stage
Mid-Stage
Late-Stage

Largest year-over-year growth in funding at 208%
Deal ...
Navigating the Healthcare System
Most actively funded opportunity at 100 deals and
$492M in funding

2013 Activity
Early-S...
2013 Activity

Aging with Vitality

Early-Stage
Mid-Stage
Late-Stage

Highest proportion of mid-stage funding at
46%
Deal ...
Vital Sign Monitoring

2013 Activity
Early-Stage
Mid-Stage
Late-Stage
Venture-Stage

Largest median deal size at $3.69M
De...
VTIAL SIGN
MONINTORING

AGING WITH
VITALITY

The nine areas present vast emerging
market opportunities
EMERGENCY DETECTION...
Vast 50+ Market Opportunities
The nine health innovation
frontiers represent a
vast and under-addressed
market opportunity...
Digital Health and
50+ Market Snapshot

2013 Median Round Size
$15M

$11M

MARKET

Digital Health
 Wellness

DEAL COUNT

F...
Methodologies
The data presented herein is from StartUp Health
Insights, which was gathered from public non-grant
funding ...
About
AARP’s vision is to stimulate innovation and
entrepreneurship in the market place around
breakthrough products, expe...
Digital Health
Insights Report for
the 50+ Market
startuphealth.com/insights

Published: January 14, 2014

A REPORT PREPAR...
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4Q 2013: Digital Health Insights Report for the 50+ Market:

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StartUp Health and AARP announce the first ever digital health funding insights report evaluating the 50+ market. This report highlights the encouraging rise in health innovation among a growing population with increased medical needs.

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4Q 2013: Digital Health Insights Report for the 50+ Market:

  1. 1. Digital Health Insights for the 50+ Market 2013 Annual Report startuphealth.com/insights Published: January 14, 2014 A REPORT PREPARED FOR
  2. 2. Digital health and wellness investments have rapidly expanded from $999M in 2010 to $2.82B Deal count more than quadrupled from 139 to 575 Deal Count 575 500 440 Total Funding $3,000M 512 375 $2,250M 250 $1,500M 234 125 $958M 139 $1.57B $2.32B $750M $2B $1.55B $2.03B $2.82B 2010 0 $999M 2011 2012 2013 Deal Count Published: January 14, 2014 Total Funding $0M 1 A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights
  3. 3. Early stage innovation is the Change: Healthcare Reform primary growth driver because Technology: Mobile & Digital Health of the following conditions: Acceleration: Chronic Disease, Aging & Cost Opportunity: Golden Age of Entrepreneurship 71% of deals were in Seed & Series A rounds Total Funding $967M Deal Count $800M 400 410 $641M 300 $590M 291 $400M 200 $283M 100 $600M 145 73 86 41 43 12 17 23 2011 2012 99 $200M 31 0 $0M 2010 Early-Stage Deal Count Mid-Stage Deal Count Late-Stage Deal Count Venture-Round Deal Count 2013 Total Funding 2 Published: January 14, 2014 A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights
  4. 4. Opportunities in the 50+ Market Vtial Sign Monintoring Emergency Detection and Response Aging with Vitality Traditional 50+ Market 50+ referred only to the aging market Navigating The Healthcare System Medication Management Behavioral and Emotional Health Physical Fitness Social Engagement Diet and Nutrition Preventative medicine is a growing focus among the 50+ market leading to increased opportunity across the nine areas of digital health and wellness innovation 3 Published: January 14, 2014 A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights
  5. 5. Funding in the 50+ market rose 33% from $722M last year to $1.15B in 2013 Deal Count Total Funding $1,000M 300 248 $750M 225 186 $500M 150 95 75 $250M 49 $425M $626M $722M $1.15BM 2010 2011 2012 2013 $0M 0 Deal Count Total Funding 4 Published: January 14, 2014 A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights
  6. 6. Early-stage deal count in 50+ market grew more than seven-fold from 25 in 2010 to 183 in 2013 Deal Count $406M Total Funding 250 $375M 200 $300M 183 $225M 150 $221M $187M 132 $150M 100 60 50 25 0 $89M 19 16 5 8 38 29 $75M 16 10 $0M 2010 Early-Stage Deal Count Mid-Stage Deal Count 2011 Late-Stage Deal Count Venture-Round Deal Count 2012 2013 Total Funding 5 Published: January 14, 2014 A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights
  7. 7. The 50+ market continues to grow at the pace of the digital health and wellness market Total Funding $626M $1.15B $722M $425M $999M $1.55B $2.03B $2.82B 2010 2011 2012 2013 Digital Health Wellness 50+ 50+ health investment sector as percent of total digital health wellness 50% 42% 41% 40% 30% 40% 35% 2010 Deal Count 2011 42% 43% 41% 36% 2012 2013 Funding 6 Published: January 14, 2014 A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights
  8. 8. Stage distribution of 50+ market deals and funding mirrors industry-wide activity 2013 Digital Health Wellness 2013 50+ Market 100% 100% 75% 75% 50% 50% 25% 25% 0% Deal Count Funding Early-Stage Deal Count Mid-Stage Deal Count 0% Deal Count Funding Late-Stage Deal Count Venture-Round Deal Count 7 Published: January 14, 2014 A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights
  9. 9. 2013 Notable VCs by stage in 50+ market denotes 3+ investments SEED SERIES A SERIES B SERIES C SERIES D SERIES E 8 Published: January 14, 2014 A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights
  10. 10. Social Engagement 2013 Activity Third highest year-over-year growth in median size deal value at 120% Deal Count 31 27 30 Total Funding $150M 23 $113M 15 $75M Early-Stage Mid-Stage Venture-Stage Deal Count Total Funding NOTABLE DEALS IN 2013 $8M Series C $7M Series C $900K Seed $4.3M Series A 9 8 0 $38M 4 $43M 2010 $26M 2011 Deal Count $105M $149M NOTABLE INVESTORS $0M 2012 2013 Total Funding MARKET INSIGHT*: Estimates suggest 40-80% of the 50-64 population and 30-70% of the 65+ population would be interested in a social engagement solution *Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights Published: January 14, 2014 9 A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights
  11. 11. Medication Management 2013 Activity Early-Stage Mid-Stage Venture-Stage Newest market opportunity in 50+ Market Deal Count Total Funding Deal Count 13 11 Total Funding $13M 10 8 $10M 6 $7M 3 3 $3M $6.72M $8.46M 2011 0 $13.39M 2012 NOTABLE DEALS IN 2013 $3M Seed $1.16M Seed $1M Seed $1.35M Seed NOTABLE INVESTORS 2013 Deal Count $0M Total Funding MARKET INSIGHT*: 0% of people ages 50-64 take at least two medications 7 and 87% of people 65 and older take at least two medications *Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights Published: January 14, 2014 10 A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights
  12. 12. Emergency Detection and Response 2013 Activity Early-Stage Mid-Stage Late-Stage Second highest proportion of early-stage funding at 85% Deal Count Total Funding Total Funding Deal Count 11 12 $40M NOTABLE DEALS IN 2013 HotDot 9 8 $30M 6 $20M 4 3 0 $21M 2010 5 $10M $28M 2011 Deal Count $40M $30M $4M Series A $3.19M Series A $2.5M Seed $7.3M Series B NOTABLE INVESTORS $0M 2012 2013 Total Funding MARKET INSIGHT*: 40-70% of the 75+ population and 10-30% of the 50-74 population would be interested in emergency detection or response services *Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights Published: January 14, 2014 11 A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights
  13. 13. Behavioral and Emotional Health 2013 Activity Early-Stage Mid-Stage Venture-Stage Highest proportion of early-stage deals at 86% Deal Count Total Funding Total Funding Deal Count 20 21 $80M NOTABLE DEALS IN 2013 17 15 $60M $9.7M Series A $5M Series A $3M Series A $2M Series A 11 10 $40M 6 5 0 $20M $13M 2010 $55M 2011 Deal Count $75M $41M NOTABLE INVESTORS $0M 2012 2013 Total Funding MARKET INSIGHT*: Estimates predict 10-30% of the 50+ population would be interested in a behavioral or emotional health solution *Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights Published: January 14, 2014 12 A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights
  14. 14. Physical Fitness 2013 Activity Early-Stage Mid-Stage Late-Stage Venture-Stage Second highest proportion of earlystage deals at 79% Deal Count Total Funding Deal Count Total Funding 40 $150M 34 38 30 $113M 20 $75M 13 10 0 $38M 6 $23M 2010 $70M 2011 Deal Count $137M NOTABLE DEALS IN 2013 $166M $43M Series D $23M Series B $14.5M Series B $18M Series A NOTABLE INVESTORS $0M 2012 2013 Total Funding MARKET INSIGHT*: ive-year total revenues as high as $1.7 billion or as low as $1.1 F billion *Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights Published: January 14, 2014 13 A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights
  15. 15. Diet and Nutrition 2013 Activity Early-Stage Mid-Stage Late-Stage Largest year-over-year growth in funding at 208% Deal Count Total Funding Deal Count Total Funding 15 15 $70M NOTABLE DEALS IN 2013 12 11 $53M 10 7 8 $35M $18M 4 0 $17M 2010 $27M 2011 Deal Count $23M $70M $30M Series A $1.52M Seed $850K Seed NOTABLE INVESTORS $0M 2012 2013 Total Funding MARKET INSIGHT*: ee-based diet and nutrition management services and F technology/software licensing fees will be the two dominant revenue models for the diet and nutrition market *Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights Published: January 14, 2014 14 A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights
  16. 16. Navigating the Healthcare System Most actively funded opportunity at 100 deals and $492M in funding 2013 Activity Early-Stage Mid-Stage Late-Stage Venture-Stage Deal Count Total Funding Total Funding Deal Count 100 100 80 $500M $400M 63 60 NOTABLE DEALS IN 2013 $68M Venture Round $40M Series A $6M Series A $2.1M Series A $300M 40 40 $200M NOTABLE INVESTORS 20 0 14 $130M $100M $280M $271M $492M $0M 2010 2011 2012 2013 Deal Count Total Funding MARKET INSIGHT*: ee-based case assistance service and advertising sales will be the F two dominant revenue models for the care navigation market *Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights Published: January 14, 2014 15 A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights
  17. 17. 2013 Activity Aging with Vitality Early-Stage Mid-Stage Late-Stage Highest proportion of mid-stage funding at 46% Deal Count Total Funding 40 40 Deal Count Total Funding 37 $200M $150M 30 19 20 $100M 12 10 0 $50M $50M 2011 $136M 2011 Deal Count $143M $177M NOTABLE DEALS IN 2013 $31M Series A $30M Series B $8.4M Series C $10M Series A NOTABLE INVESTORS $0M 2012 2013 Total Funding MARKET INSIGHT*: he Affected Population of this market hit 101 million at the end of T 2012 and will reach 113 million by 2018 *Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights Published: January 14, 2014 16 A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights
  18. 18. Vital Sign Monitoring 2013 Activity Early-Stage Mid-Stage Late-Stage Venture-Stage Largest median deal size at $3.69M Deal Count Total Funding Deal Count Total Funding 50 $375M NOTABLE DEALS IN 2013 46 40 $300M $62M Series F 34 $32M Series C $20M Series D $15M Series B $225M 30 20 20 $150M 14 $75M 10 $228M $136M $126M NOTABLE INVESTORS $366M $0M 0 2010 2011 Deal Count 2012 2013 Total Funding MARKET INSIGHT: An estimated 78 million consumers 50+ have at least one chronic condition *Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights Published: January 14, 2014 17 A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights
  19. 19. VTIAL SIGN MONINTORING AGING WITH VITALITY The nine areas present vast emerging market opportunities EMERGENCY DETECTION AND RESPONSE AGING WITH VITALITY VTIAL SIGN MONINTORING AGING WITH VITALITY MEDICATION MANAGEMENT SOCIAL ENGAGEMENT BEHAVIORAL AND EMOTIONAL HEALTH Third highest year-overSOCIAL ENGAGEMENT VTIAL SIGN year growth in median MONINTORING size deal value at 120% DIET AND NUTRITION BEHAVIORAL AND EMOTIONAL HEALTH Newest market opportunity in 50+ PHYSICAL FITNESS PHYSICAL FITNESS EMERGENCY DETECTION AND RESPONSE DIET AND NUTRITION DIET AND NUTRITION CARE NAVIGATION PHYSICAL FITNESS AGING WITH VITALITY Second highest proportion Highest proportion of mid- of early-stage deals at 79% VTIAL SIGN MONINTORING VTIAL SIGN MONINTORING stage funding at 46% EMERGENCY DETECTION AND RESPONSE EMERGENCY DETECTION AND RESPONSE PHYSICAL FITNESS AGING WITH VITALITY VTIAL SIGN MONINTORING DIET AND NUTRITION MEDICATION MANAGEMENT BEHAVIORAL AND EMOTIONAL HEALTH BEHAVIORAL AND EMOTIONAL HEALTH Most actively funded CARE opportunity NAVIGATION at 100 deals and $492M PHYSICAL FITNESS BEHAVIORAL AND EMERGENCY DETECTION EMOTIONAL HEALTH AND RESPONSE SOCIAL ENGAGEMENT MEDICATION MANAGEMENT MEDICATION MANAGEMENT SOCIAL ENGAGEMENT NAVIGATING THE HEALTHCARE SYSTEM Highest proportion of early-stage deals at 86% SOCIAL ENGAGEMENT MEDICATIONWITH AGING VITALITY MANAGEMENT AGING WITH VITALITY EMERGENCY DETECTION AND RESPONSE EMERGENCY DETECTION AND RESPONSE CARE NAVIGATION MEDICATION MANAGEMENT AGING WITH VITALITY VTIAL SIGN MONINTORING EMERGENCY DETECTION AND RESPONSE ENGAGEMENT funding at 85% Published: January 14, 2014 VITAL SIGN MONITORING DIET AND NUTRITION Second highest SOCIAL SOCIAL proportion of early ENGAGEMENT CARE NAVIGATION CARE NAVIGATION DIET AND NUTRITION DIET AND NUTRITION MEDICATION MANAGEMENT Largest year-overPHYSICAL FITNESS year growth in AND PHYSICAL BEHAVIORAL FITNESS EMOTIONAL HEALTH funding at 208% AGING WITH VITALITY Largest median deal size at $3.69M VTIAL SIGN MONINTORING EMERGENCY DETECTION AND RESPONSE SOCIAL ENGAGEMENT DIET AND A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights NUTRITION 18 N
  20. 20. Vast 50+ Market Opportunities The nine health innovation frontiers represent a vast and under-addressed market opportunity. AGING WITH VITALITY MEDICATION MANAGEMENT Breakthrough technologies, innovative services, and disruptive business models will benefit more than 100 million people 50+ and represent $20 billion in revenue by 2018. BEHAVIORAL AND EMOTIONAL HEALTH Source: Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights Published: January 14, 2014 SOCIAL ENGAGEMENT 19 A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights
  21. 21. Digital Health and 50+ Market Snapshot 2013 Median Round Size $15M $11M MARKET Digital Health Wellness DEAL COUNT FUNDING MEDIAN DEAL $8M 440 575 $2.03B $2.82B $1.29M $1.40M $4M 50+ 186 248 $722M $1.15B $1.24M $1.30M $0M Seed Series A Series B Series C Series D Series E Digital Health and Wellness 50+ 50+ OPPORTUNITY DEAL COUNT FUNDING MEDIAN DEAL SIZE Social Engagement 27 31 $105M $149M $560K $1.23M Medication Management 10 13 $6.72M $8.46M $190K $432K Emergency Detection Response 9 12 $40M $30M $2.75M $2.40M Behavioral and Emotional Health 17 21 $75M $41M $1.09M $845K Physical Fitness 34 38 $136M $166M $2.58M $1.58M Diet and Nutrition 15 12 $23M $70M $1.10M $845K Navigating the Healthcare System 63 $271M $492M $1.70M $1.35M Aging with Vitality 40 37 $143M $177M $915K $1.90M Vital Sign Monitoring 34 $126M $366M $1.27M $3.69M Key: 2012 | 2013 Published: January 14, 2014 100 46 20 A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights
  22. 22. Methodologies The data presented herein is from StartUp Health Insights, which was gathered from public non-grant funding information from SEC filings, company press releases, CrunchBase, AngelList, and other news sources as of January 3, 2013. The data spans from January 1, 2010 through December 31, 2013. The funding stages are categorized as follows: Early-Stage: Incubator, Seed, Series A Mid-Stage: Series B C Late-Stage: Series D, E F Venture-Round: Stage not disclosed publicly The 50+ health investment sector, as defined by AARP, is comprised of the following market opportunities and some of their respective needs that are addressed: MARKET OPPORTUNITY EXAMPLES OF NEEDS ADDRESSED Social Engagement Staying connected socially Keeping mobilized Stimulating intellect Medication Management Managing multiple medications Preventing in-home accidents Sharpening memory Emergency Detection Response Detecting falls Sending alerts when lost Preventing in-home accidents Behavioral and Emotional Health Stress reduction Receiving divorce/grief support Managing life phase transitions Physical Fitness Improving muscle strength Age-appropriate exercise Maintaining healthy weight Diet and Nutrition Eating healthy and portion control Maintaining a healthy weight Reducing bad cholesterol Navigating the Healthcare System Managing healthcare costs Evaluating quality of care Plan for end of life care Aging with Vitality Aiding in memory and cognition Improving or aiding vision Improving or aiding hearing Vital Sign Monitoring Keeping blood pressure in range Detecting skin problems Improving sleep quality Some deals (slides 9-17) may represent more than one sector, and as such, may be included in multiple categories. However, neither the aggregate data on the “digital health and wellness” industry (slides 1-2) nor the “50+” industry (slides 4-7) include double counting. Published: January 14, 2014 21 A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights
  23. 23. About AARP’s vision is to stimulate innovation and entrepreneurship in the market place around breakthrough products, experiences, and business models for health technologies benefiting the 50+ market. Startup Health, a global startup platform to accelerate health and wellness innovation, represents a new model for helping entrepreneurs succeed in the health sector. StartUp Health is on a mission to inspire, educate, and provide access for 1,000 digital health startups to reimagine and transform healthcare by 2020. 22 Published: January 14, 2014 A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights
  24. 24. Digital Health Insights Report for the 50+ Market startuphealth.com/insights Published: January 14, 2014 A REPORT PREPARED FOR
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