A report providing an overview of the Health Technology startup landscape. Includes a sector overview, graphical trends with insights, and recent funding/exit events. Contact info@venturescanner.com or visit www.venturescanner.com to learn more!

1. Q3 Startup Market Trends and Insights
HEALTH TECHNOLOGY
August 2017

2. Health technology report outline
2
This report provides an overview of the health technology sector and is broken
down into three sections
SectorDescription
High-level sector metrics,
innovation quadrant, and
category definitions
Trends& Insights
Infographics and data points
for the health technology
sector
QuarterlyActivity
Major funding and exit
events from the previous
90 days
Venture Scanner reports are built by analysts utilizing our startup
database and research platform

3. Sector Description
3

4. 4
Health technology startups are creating new businesses in 22 categories
The full Venture Scanner market report
and database tracks 1,977 companies
with $48B in funding
HEALTH
TECHNOLOGY
The graphic above shows only a sampling of companiesin each category, data cumulativeas of August 2017
Administration HealthCommunity teleHealthInsurance/Payment
PatientEngagement DoctorSearch
Genomics IoTFitness
IoTHealthcare RemoteMonitoring
z
EHR/EMR Communications
DoctorNetworks Gamification
MedicalDevices
Robotics MedicalBigData
Marketing
HealthDestination
HealthApps
PopulationHealth

5. 5
Innovation quadrant for health technology
This quadrant shows a relative segmentationof the categories with respect to oneanother, data cumulativeas of August 2017
AverageFunding
ESTABLISHED HEAVYWEIGHTS
PIONEERS DISRUPTORS
AverageAge
Genomics
Medical Device
IoT Fitness
Insurance/Payments
Health Destination
Sites
Clinical Administration
Population Health
EHR/EMR
Healthcare Robotics
Health Apps Healthcare Search
Gamification
IoT Health
Nutrition
Remote
Monitoring
teleHealth
Medical Big Data
Patient Engagement
Doctor Network
Communications
Healthcare
Communities
Healthcare
Marketing

6. Health technology startups play in many different categories (1 of 3)
6Category stats cumulativeas of Augusts 2017
ClinicalAdministrationand Backend
175 Startups, $4B Total Funding
Companies that optimize management of healthcare-
related administrative tasks, such as scheduling, patient
transfers, and compliance
Doctorand HealthcareServiceSearch
143 Startups, $3.1B Total Funding
Companies that help patients find the right healthcare
solutions, such as services to search for doctors,
healthcare plans, and specialized healthcare
ElectronicHealth/Medical Records
115 Startups, $2.1B Total Funding
Companies that provide and improve the efficiency of
EHR/EMR systems to optimize the internal coordination
of patient medical data, such as charts and referrals
Genomicsand PersonalizedMedicine
103 Startups, $6.9B Total Funding
Companies that utilize human genome data for disease
prevention and treatment, such as genetic testing, cost
analytics, and personalized reports
DigitalMedicalDevicesand Diagnostics
251 Startups, $9.8B Total Funding
Companies that manufacture IT-enabled medical devices
and diagnostic tools such as surgical devices, monitoring
equipment, and detection equipment
DoctorNetworkand Resources
44 Startups, $1.2B Total Funding
Companies that connect doctors with each other to share
experiences, such as collaboration tools and medical
social networks
Gamification of Health
34 Startups, $249M Total Funding
Companies that promote behavior-changing health and
wellness, such as gamification solutions for healthy
eating and fitness
HealthcareMarketingand CampaignManagement
23 Startups, $481M Total Funding
Companies that identify and target potential customers
for healthcare services, such as healthcare specific CRM
platforms

7. Health technology startups play in many different categories (2 of 3)
7Category stats cumulativeas of August 2017
HealthcareMobileCommunications/Messaging
29 Startups, $511M Total Funding
Companies that create communication services for
healthcare, such as secure messaging, care transition
notifications, and shareable notes
HealthInsuranceand Payments
99 Startups, $4.2B Total Funding
Companies that manage healthcare benefits and
payments, such as insurance marketplaces and platforms
to automate payments
IoT HealthCare
235 Startups, $3.2B Total Funding
Companies that track health metrics and improve
wellbeing, such as breathing mobile games, sleep
trackers, and pain relief wearables
MobileFitness/HealthApps
138 Startups, $873M Total Funding
Companies that create health related apps, such as
keeping track of fitness activities and providing structured
fitness routines
HealthcareRobotics
14 Startups, $769M Total Funding
Companies that create robotics solutions for healthcare,
such as robotic prosthetics and robotic remote patient
treatment
IoT Fitness
163 Startups, $4.5B Total Funding
Companies that track fitness and exercise metrics, such as
healthy eating trackers, exercise tracking wristbands, and
smartphone-controlled shoes
MedicalBig Data
129 Startups, $3.3B Total Funding
Companies that provide big data analytics for medical
applications, such as solutions to link data across different
systems and predictive analytics
NutritionInnovations
93 Startups, $2B Total Funding
Companies that help consumers with healthy eating, such
as providing meal plans, nutritional information, and
nutritional food delivery

8. Health technology startups play in many different categories (3 of 3)
8Category stats cumulativeas of August 2017
OnlineHealthCommunities
45 Startups, $583M Total Funding
Companies that connect patient groups and medical
professionals, such as disease based social networks and
platforms for generalized medical information
PatientEngagementand Education
102 Startups, $2.2B Total Funding
Companies that inform patients about modern medical
practices, such as in-hospital multimedia and patient
relationship management services
RemoteMonitoringand FamilyCare Management
88 Startups, $1.8B Total Funding
Companies that allow families and medical professionals
to monitor those in care, such as caregiverservices and
alert systems for in-home care
OnlineHealthDestinationSites
49 Startups, $1.8B Total Funding
Companies that provide health-related information and
resources, such as symptom checklists and drug
information
PopulationHealthManagement
82 Startups, $2.1B Total Funding
Companies that analyze groups of patient data to create
actionable insights, such as population data management
and communications with the group
teleHealth
175 Startups, $1.8B Total Funding
Companies that enable remote treatment between
doctors and patients, such as video conference solutions
and text-based communications

9. Sector Trends & Insights
9

10. 10
Investing into the sector is occurring across a variety of categories
The Digital Medical Devices category accounts for 17% of venturefunding and 11% of
totalcompanies in the health technology sector
Venture Investing in Health Technology
Companiesare categorized by function, and therefore can exist in multiple categories. Data cumulativethrough August 2017
-
50
100
150
200
250
300
0
1
2
3
4
5
6
7
8
9
10
CompanyCount
TotalFunding($B)
VC Funding Count

11. 11
VC funding into health tech has grown in recent years
Overall healthtech VC fundinggrew ata CAGR of 31% from 2011-2016, and
2017 is currently at 102% of 2016 funding
Health Technology Funding Over Time
Data cumulativethrough August 2017
0
1
2
3
4
5
6
7
8
9
10
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
TotalFunding($B)

12. 12
Health technology funding amounts are focused on early stage events
Health Technology Funding Amount By Round
SeriesA financings accounted for 36% of total 2016 health tech VC funding
Graphs shows only the funding rounds listed therein, data cumulativethrough August 2017
0
1
2
3
4
5
6
7
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
FundingAmount($B)
Late Stage Series D Series C Series B Series A Seed

13. 13
Health technology startups founded in 2013 lead in VC funding
Startups founded in 2013 account for 16% of the sectorfunding over the last decade, and
include companies like ZhongAn, Oscar, and Zenefits
Health Technology Funding By Vintage Year
Data cumulativethrough August 2017
0
1
2
3
4
5
6
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
TotalFunding($B)
Year Founded

14. 14
Health technology startups are a global phenomenon
Health Technology Startup Countby Country
Data cumulativethrough August 2017
14000
Companies

15. 15
A variety of top investors are making bets into health technology
Selected Investor Activity in Health Technology
The above count represents a subset of overall investor activity, data cumulativethrough August 2017
0
10
20
30
40
50
60
70
NumberofInvestments
Number of Investments Number of Companies Backed

16. 16
Exits within the health technology space have been dominated by acquisitions
Exit events within the health tech sector grew by 164% from 2011 to 2016,
and 2017 is currently at 62% of the 2016 total
Health Technology M&A and IPO Events By Year
Data cumulativethrough August 2017
0
10
20
30
40
50
60
70
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
NumberofExits
Public Acquired

17. Quarterly Notable Events
17

18. 18
Recent health technology funding statistics
There have been 164 health tech funding events from April 2017
through June 2017
Recent Health Technology Funding Round Counts
Graph shows only the funding types listed therein
0
5
10
15
20
25
30
35
40
45
Seed Series A Series B Series C Series D Series E Late Stage
FundingEventCount

19. 19
Recent health technology funding events
Notable Recent Health Technology Funding Events
Company FundingType Amount Date
Series A $500,000,000 May 31, 2017
Series E $360,000,000 May 11, 2017
Series E $325,000,000 May 24, 2017
Private Equity $231,000,000 May 10, 2017
Venture $200,000,000 May 3, 2017
Health tech startups raised $4.4 billion from April 2017 through June 2017

20. 20
Recent health technology exit events
Notable Recent Health Technology Exit Events
Company Acquirer Amount Date
$1,800,000,000 May 17, 2017
$701,000,000 June 19, 2017
$440,000,000 Jun 19, 2017
$397,000,000 April 4, 2017
Unknown June 13, 2017
There have been 18 health tech exits from April 2017 through
June 2017, including 15 acquisitions and 3 IPOs

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