Digital Health
Insights Report for
the 50+ Market
Published: December 10, 2013

A REPORT PREPARED FOR
Digital health and wellness investments have
rapidly expanded from $958M in 2010 to $2.29B
Deal count more than tripled fr...
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 28%
from $723M last year to $928M in 2013
Deal Count

Total Funding

300

$1,000M

225

$75...
Early-stage deal count in 50+ market grew
more than six-fold from 24 in 2010 to 153 by
the end of Q3
Deal Count

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

Total Funding

$618M

$928M

$723M...
Stage distribution of 50+ market deals and
funding mirrors industry-wide activity
2013 Digital Health  Wellness

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

SEED

SERIES A

SERIES B

SERIES C

SERIES D

SERIES E

8
Publ...
2013 Activity

Social Engagement

Early-Stage
Mid-Stage
Late-Stage
Venture-Stage

Largest year-over-year growth in
median ...
2013 Activity

Medication Management

Early-Stage
Mid-Stage
Late-Stage
Venture-Stage

Newest market opportunity in 50+ Mar...
Emergency Detection and Response

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

Second highest year-over-y...
2013 Activity

Behavioral and Emotional Health

Early-Stage
Mid-Stage
Late-Stage
Venture-Stage

Highest proportion of earl...
2013 Activity

Physical Fitness

Early-Stage
Mid-Stage
Late-Stage
Venture-Stage

Second highest number of incubator 
seed ...
2013 Activity

Diet and Nutrition

Early-Stage
Mid-Stage
Late-Stage
Venture-Stage

Largest year-over-year growth in total ...
Navigating the Healthcare System
Most actively funded opportunity in 50+ market
at 78 deals and $384M in funding
Deal Coun...
2013 Activity

Aging with Vitality

Early-Stage
Mid-Stage
Late-Stage
Venture-Stage

Third highest year-over-year growth
in...
2013 Activity

Vital Sign Monitoring

Early-Stage
Mid-Stage
Late-Stage
Venture-Stage

Largest median deal size at $2.76M
D...
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

DEAL COUNT

Digital Health
 Wellness

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
Published: December 10, 2013

A REPORT PREPARED FOR
Upcoming SlideShare
Loading in...5
×

3Q 2013: Digital Health Insights Report for the 50+ Market:

792

Published on

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. Download at www.startuphealth.com/aarp

0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
792
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide

Transcript of "3Q 2013: Digital Health Insights Report for the 50+ Market: "

  1. 1. Digital Health Insights Report for the 50+ Market Published: December 10, 2013 A REPORT PREPARED FOR
  2. 2. Digital health and wellness investments have rapidly expanded from $958M in 2010 to $2.29B Deal count more than tripled from 135 to 465 Deal Count Total Funding 500 $3,000M 465 429 512 375 $2,250M 250 $1,500M 226 125 $958M 135 $1.57B $2.32B $750M $2B $1.56B $2.03B $2.29B 2010 0 $958M 2011 2012 2013 Deal Count Published: December 10, 2013 Total Funding $0M 1 Digital Health Insights Report for the 50+ Market downloadable at www.startuphealth.com/aarp
  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 73% of deals were in Seed & Series A rounds Deal Count Total Funding $800M 400 $795M 339 $634M 300 $584M 286 $400M 200 $283M 100 $600M 142 88 77 46 17 23 30 2011 2012 72 40 12 0 $200M $0M 2010 Early-Stage Deal Count Mid-Stage Deal Count Late-Stage Deal Count Venture-Round Deal Count 2013 Total Funding 2 Published: December 10, 2013 Digital Health Insights Report for the 50+ Market downloadable at www.startuphealth.com/aarp
  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: December 10, 2013 Digital Health Insights Report for the 50+ Market downloadable at www.startuphealth.com/aarp
  5. 5. Funding in the 50+ market rose 28% from $723M last year to $928M in 2013 Deal Count Total Funding 300 $1,000M 225 $750M 203 183 $500M 150 92 75 $250M 49 $413M $618M $723M $928M 2010 2011 2012 2013 $0M 0 Deal Count Total Funding 4 Published: December 10, 2013 Digital Health Insights Report for the 50+ Market downloadable at www.startuphealth.com/aarp
  6. 6. Early-stage deal count in 50+ market grew more than six-fold from 24 in 2010 to 153 by the end of Q3 Deal Count Total Funding $335M 200 $300M 153 $225M 150 $221M $184M 130 $150M 100 58 $75M 50 24 0 $72M 17 5 19 8 29 29 10 16 $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: December 10, 2013 Digital Health Insights Report for the 50+ Market downloadable at www.startuphealth.com/aarp
  7. 7. The 50+ market continues to grow at the pace of the digital health and wellness market Total Funding $618M $928M $723M $413M $958M $1.56B $2.03B $2.29B 2010 2011 2012 2013 Digital Health Wellness 50+ 50+ health investment sector as percent of total digital health wellness 50% 43% 41% 40% 30% 40% 36% 2010 Deal Count 2011 43% 44% 41% 36% 2012 2013 Funding 6 Published: December 10, 2013 Digital Health Insights Report for the 50+ Market downloadable at www.startuphealth.com/aarp
  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: December 10, 2013 Digital Health Insights Report for the 50+ Market downloadable at www.startuphealth.com/aarp
  9. 9. 2013 Top VCs by stage in 50+ market denotes 3+ investments SEED SERIES A SERIES B SERIES C SERIES D SERIES E 8 Published: December 10, 2013 Digital Health Insights Report for the 50+ Market downloadable at www.startuphealth.com/aarp
  10. 10. 2013 Activity Social Engagement Early-Stage Mid-Stage Late-Stage Venture-Stage Largest year-over-year growth in median size deal value at 265% Deal Count Total Funding Total Funding Deal Count 28 30 $150M NOTABLE DEALS IN 2013 26 23 $113M 15 $75M $8M Series C $7M Series C $5M Series B $4.3M Series A 9 8 0 $38M 4 $43M 2010 $26M 2011 Deal Count $105M $142M NOTABLE INVESTORS $0M 2012 2013 Total Funding MARKET FACT*: 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: December 10, 2013 9 Digital Health Insights Report for the 50+ Market downloadable at www.startuphealth.com/aarp
  11. 11. 2013 Activity Medication Management Early-Stage Mid-Stage Late-Stage Venture-Stage Newest market opportunity in 50+ Market Deal Count Total Funding Deal Count 11 Total Funding 11 $13M 10 8 $10M 6 $7M 3 3 $3M $6.72M $7.06M 2011 0 $13.39M 2012 NOTABLE DEALS IN 2013 $3M Seed $1.16M Seed $1M Seed $632K Series B NOTABLE INVESTORS 2013 Deal Count $0M Total Funding MARKET FACT*: 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: December 10, 2013 10 Digital Health Insights Report for the 50+ Market downloadable at www.startuphealth.com/aarp
  12. 12. Emergency Detection and Response 2013 Activity Early-Stage Mid-Stage Late-Stage Venture-Stage Second highest year-over-year deal count growth at 22% Deal Count Total Funding Total Funding Deal Count $40M 11 NOTABLE DEALS IN 2013 11 9 8 $30M 6 3 0 $20M 4 $21M 2010 5 $10M $28M 2011 Deal Count $40M $23M $4M Series A $3.19M Series A $2.5M Seed $2.4M Series D NOTABLE INVESTORS $0M 2012 2013 Total Funding MARKET FACT*: 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: December 10, 2013 11 Digital Health Insights Report for the 50+ Market downloadable at www.startuphealth.com/aarp
  13. 13. 2013 Activity Behavioral and Emotional Health Early-Stage Mid-Stage Late-Stage Venture-Stage Highest proportion of early-stage deals at 94% Deal Count Total Funding Total Funding Deal Count 20 $80M 17 NOTABLE DEALS IN 2013 17 15 $60M $9.7M Series A $5M Series A $3M Series A $2M Series A 10 10 $40M 6 5 0 $20M $13M 2010 $55M 2011 Deal Count $75M $35M NOTABLE INVESTORS $0M 2012 2013 Total Funding MARKET FACT*: 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: December 10, 2013 12 Digital Health Insights Report for the 50+ Market downloadable at www.startuphealth.com/aarp
  14. 14. 2013 Activity Physical Fitness Early-Stage Mid-Stage Late-Stage Venture-Stage Second highest number of incubator seed investments at 19 deals Deal Count Total Funding Deal Count Total Funding 40 $150M 32 30 29 20 $113M $75M 13 10 0 $38M 6 $23M 2010 $70M 2011 Deal Count $134M $107M NOTABLE DEALS IN 2013 $43M Series D $18M Series A $14.5M Series B $5M Series C NOTABLE INVESTORS $0M 2012 2013 Total Funding MARKET FACT*: ive-year total revenues as high as $1.7 billion or as low as $1.1 billion F *Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights Published: December 10, 2013 13 Digital Health Insights Report for the 50+ Market downloadable at www.startuphealth.com/aarp
  15. 15. 2013 Activity Diet and Nutrition Early-Stage Mid-Stage Late-Stage Venture-Stage Largest year-over-year growth in total funding at 171% Deal Count Total Funding Deal Count Total Funding 15 15 $70M NOTABLE DEALS IN 2013 11 11 8 $53M 10 7 $35M $18M 4 0 $17M 2010 $27M 2011 Deal Count $23M $62M $30M Series A $1.52M Seed $850K Seed NOTABLE INVESTORS $0M 2012 2013 Total Funding MARKET FACT*: 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: December 10, 2013 14 Digital Health Insights Report for the 50+ Market downloadable at www.startuphealth.com/aarp
  16. 16. Navigating the Healthcare System Most actively funded opportunity in 50+ market at 78 deals and $384M in funding Deal Count 78 80 2013 Activity Early-Stage Mid-Stage Late-Stage Venture-Stage Deal Count Total Funding Total Funding $400M NOTABLE DEALS IN 2013 61 60 $300M $68.25M Venture Round $40M Series A $4M Series A $2.1M Series A 39 40 20 0 $200M $100M 13 $113M 2010 $277M 2011 Deal Count $268M $384M NOTABLE INVESTORS $0M 2012 2013 Total Funding MARKET FACT*: ee-based case assistance service and advertising sales will be the two F dominant revenue models for the care navigation market *Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights Published: December 10, 2013 15 Digital Health Insights Report for the 50+ Market downloadable at www.startuphealth.com/aarp
  17. 17. 2013 Activity Aging with Vitality Early-Stage Mid-Stage Late-Stage Venture-Stage Third highest year-over-year growth in median deal size at 119% Deal Count Deal Count Total Funding Total Funding 40 40 35 $200M $150M 30 18 20 $100M 12 10 0 $50M $50M 2011 $135M 2011 Deal Count $143M $166M NOTABLE DEALS IN 2013 $31.13M Series A $30M Series B $8.4M Series C $7.45M Series B NOTABLE INVESTORS $0M 2012 2013 Total Funding MARKET FACT*: 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: December 10, 2013 16 Digital Health Insights Report for the 50+ Market downloadable at www.startuphealth.com/aarp
  18. 18. 2013 Activity Vital Sign Monitoring Early-Stage Mid-Stage Late-Stage Venture-Stage Largest median deal size at $2.76M Deal Count Total Funding Deal Count Total Funding 40 36 $300M NOTABLE DEALS IN 2013 33 $225M 30 18 20 $150M 14 $75M 10 $228M $131M $119M $62.5M Series F $32.19M Series C $18.15M Series D $11.5M Series B NOTABLE INVESTORS $266M $0M 0 2010 2011 Deal Count 2012 2013 Total Funding MARKET FACT*: An estimated 78 million consumers 50+ have at least one chronic condition *Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights Published: December 10, 2013 17 Digital Health Insights Report for the 50+ Market downloadable at www.startuphealth.com/aarp
  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 AGING WITH VITALITY SOCIAL ENGAGEMENT BEHAVIORAL AND EMOTIONAL HEALTH DIET AND NUTRITION BEHAVIORAL AND EMOTIONAL HEALTH PHYSICAL FITNESS BEHAVIORAL AND EMERGENCY DETECTION EMOTIONAL HEALTH AND RESPONSE SOCIAL ENGAGEMENT MEDICATION AGING WITH MANAGEMENT VITALITY AGING WITH MEDICATION MANAGEMENT MEDICATION MANAGEMENT SOCIAL ENGAGEMENT VITALITY Newest market opportunity in 50+ PHYSICAL FITNESS PHYSICAL FITNESS EMERGENCY DETECTION AND RESPONSE DIET AND NUTRITION DIET AND VTIAL SIGN MONINTORING VTIAL SIGN MONINTORING NUTRITION CARE PHYSICAL FITNESS NAVIGATION AGING WITH VITALITY Third highest yearover-year growth in median deal size at 119% Second highest number of incubator and seed EMERGENCY DETECTION AND RESPONSE EMERGENCY DETECTION investments RESPONSE deals at 19 AND PHYSICAL FITNESS AGING WITH VITALITY VTIAL SIGN MONINTORING DIET AND NUTRITION MEDICATION MANAGEMENT BEHAVIORAL AND EMOTIONAL HEALTH BEHAVIORAL AND EMOTIONAL HEALTH NAVIGATING THE HEALTHCARE SYSTEM Most actively funded opportunity in 50+ Market at 78 deals and $384M CARE NAVIGATION in funding Highest proportion of early-stage deals at 94% SOCIAL ENGAGEMENT EMERGENCY DETECTION AND RESPONSE EMERGENCY DETECTION AND RESPONSE CARE NAVIGATION MEDICATION MANAGEMENT Largest year-over-year growth in median size VTIAL SIGN MONINTORING deal value at 265% VTIAL SIGN MONINTORING EMERGENCY DETECTION AND RESPONSE Second highest yearSOCIAL over-year deal count ENGAGEMENT SOCIAL ENGAGEMENT growth at 22% Published: December 10, 2013 CARE NAVIGATION CARE NAVIGATION VITAL SIGN MONITORING DIET AND NUTRITION DIET AND NUTRITION DIET AND NUTRITION MEDICATION MANAGEMENT Largest year-overPHYSICAL year growth in total FITNESS PHYSICAL BEHAVIORAL AND funding at 171%HEALTH FITNESS EMOTIONAL AGING WITH VITALITY Largest median deal size at $2.76M VTIAL SIGN MONINTORING EMERGENCY DETECTION AND RESPONSE SOCIAL ENGAGEMENT DIET AND Digital Health Insights Report for the 50+ Market downloadable at www.startuphealth.com/aarp 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: December 10, 2013 SOCIAL ENGAGEMENT 19 Digital Health Insights Report for the 50+ Market downloadable at www.startuphealth.com/aarp
  21. 21. Digital Health and 50+ Market Snapshot 2013 Median Round Size $15M $11M MARKET DEAL COUNT Digital Health Wellness FUNDING MEDIAN DEAL $8M 429 465 $2.03B $2.29B $1.27M $1.10M $4M 50+ 183 203 $723M $928M $1.20M $1.00M $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 28 26 $105M $142M $520K $1.90M Medication Management 10 11 $6.72M $7.06M $190K $432K Emergency Detection Response 9 11 $40M $23M $2.75M $1.85M Behavioral and Emotional Health 17 17 $75M $35M $1.09M $758K Physical Fitness 32 29 $134M $107M $2.56M $935K Diet and Nutrition 15 11 $23M $62M $1.10M $1.44M Navigating the Healthcare System 61 78 $268M $384M $1.78M $750K Aging with Vitality 40 35 $143M $166M $915K $2.00M Vital Sign Monitoring 33 $119M $266M $1.25M $2.76M Key: 2012 | 2013 Published: December 10, 2013 36 20 Digital Health Insights Report for the 50+ Market downloadable at www.startuphealth.com/aarp
  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 November 21, 2013. The data spans from January 1, 2010 through September 30, 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: December 10, 2013 21 Digital Health Insights Report for the 50+ Market downloadable at www.startuphealth.com/aarp
  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: December 10, 2013 Digital Health Insights Report for the 50+ Market downloadable at www.startuphealth.com/aarp
  24. 24. Digital Health Insights Report for the 50+ Market Published: December 10, 2013 A REPORT PREPARED FOR

×