Presentation for Health Investor Magazine - 'Private Equity in Healthcare' Conference - 01/03/18

1. Page 1 1 January 2014 Presentation title
RLT discussion on Mental
Health – A call to action
6th June 2017
Pre read material
Disruptive capital in healthcare - identifying
high growth early platform plays
Joe Stringer
Partner, EY Ventures
1st March 2018

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Health remains one of the largest early stage capital markets

3. Page 3
AI/ Machine
learning
Wearables
everything
Blockchain Sensors Digital therapies
ePrescribing
Micro air vehicles
(MAVs)
Bio printing Neural implants Hand-held diagnostics Virtual reality
Monitoring
devices
Patient tracking/
hospital flow
Artificial Super
intelligence
Robotic
surgery
Digital healthcare landscape Investment
Robotic Process
Automation
Genomics RNA therapies Anti-ageing AI drug design
Electronic Records
£1.47Bn
£4.15Bn
£3.20Bn
£1.37Bn
?
Beware labels and ‘megatrends’
Source: StartUp Health Insights | startuphealth.com/insights - Report based on public data through 12/31/17 on seed (incl.
accelerator), venture, corporate venture and private equity funding only. © 2018 StartUp Health LLC

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Beware waning trust

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The big revolutions aren’t in developed health economies

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In general, the U.K.
achieves superior
performance
compared to other
countries in Health
Care performance
rankings (Mirror, Mirror
2017. Commonwealth
Fund Report)
Not enough distress
for a major national
technology investment
(and the ghost of
NPfIT looms large)
The big revolutions aren’t in developed health economies

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The big revolutions aren’t in developed health economies

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They’re here - where necessity has become the mother of invention
Source: Telehealth – Opportunities and development in member states. World Health Organisation. Accessible at
http://www.who.int/goe/publications/goe_telemedicine_2010.pdf

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Major new advances in healthcare technology
Micro-sensors in Japan (2015):
Doctors at a Japanese university
produced the first sterilisable, organic
transistors; easily manufactured on a
biocompatible polymeric film for use
as internal sensors
3D printing in India (2016): India is
now one of the fastest growing
markets for the 3D printing, with
recent uses include modelling body
parts to strategise for complex
procedures
Augmented reality in Israel (2017):
A start-up in Israel has produced the
first medical holographic system that
provides image intimacy capabilities
for direct and precise interaction with
and within the holographic images
Digital hearing aids in
Botswana (2017). Botswana-
based Deaftronics has
manufactured the first solar-
powered digital hearing aid
unit, Solar Ear. Game-
changing in a country where
there are only 12 audiologists
and five audiology centres for
a population of over two
million people

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They’re hereChina is leading the way on investment in healthcare innovation
AliHealth's Doctor You uses AI to diagnose medical images of CT
scans and identify inflammatory cells in human organs as an early
indicator of cancer.
Tencent Doctorwork Clinic, a health management platform, has
been launched in hope that advanced technology will alleviate the
workload of mainland Chinese physicians in a nation suffering from
an acute shortage of doctors.
Baidu has launched an AI-tech chatbot to communicate with
patients and provide diagnosis advice to doctors.

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Digital health market size growth outside the western world
Japan’s digital health market
size will grow at over 29% to
exceed US$ 20 billion by
2024, based on adoption of
new healthcare
technologies
Brazil’s digital health market
size was over US$ 843
million in 2015 and
anticipated to grow by
27.9% by 2024
South Africa’s digital
healthcare market share
was over 15% of regional
revenue in 2015 and
expected to surpass US$
1.2 billion by 2024
China market size will grow at
over 30% to exceed USD 17
billion by 2024. Government
initiatives to encourage eHealth
to address unmet healthcare
needs and widespread adoption
of new technologies such as
mobile devices will drive
business growth.

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But (whisper it) there are some evolutionary unicorns hiding in the UK

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► Solutions to todays issues (tomorrow can wait)
► Need market depth, but doesn’t always have to cure cancer
► There are global opportunities, but all need some tailoring to national policy
► Deckchairs will always be moving (normally in commissioning)
► Beware the 1-flight pilot
► There’s no such thing as purely private / consumer
► Every step closer to the patient increases risk & cost of sale
A platform spotters guide

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