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StartUp Health Insights Global Digital Health Funding Report: 2018 Year End Review

StartUp Health
StartUp Health
StartUp HealthMentor at StartUp Health

Welcome to the most-funded year ever in digital health. Investments topped hundreds of millions of US dollars for the first time, with funds funneling to a broader range of cities like Bengaluru and Nashville. Globally, investors are on track to nearly double their 2017 investments, demonstrating long-term commitments, as well as overall growth potential in the market. The digital health market is as potent as ever.

StartUp Health Insights Global Digital Health Funding Report: 2018 Year End Review

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© 2018 StartUp Health, LLC
STARTUP HEALTH INSIGHTS
Global Digital Health Funding Report


Data through December 31, 2018
Report is inclusive of publicly available seed, venture, corporate venture, and private equity funding.
Sign up to receive weekly funding insights at startuphealth.com/insider.
2018 Year End Report
TM
© 2019 StartUp Health Holdings, Inc.
Pages Topic
3 ………………………………… Health Moonshots
4 ………………………………… 2018 Summary
5-15 ………………………………… Deals and Funding
16-18 ………………………………… Investors
19-22 ………………………………… Segment Detail
23-25 ………………………………… Health Transformers
26 ………………………………… Methodology
StartUp Health InsightsTM Contributors
Jennifer
Hankin
Mark
Liber
Anne
Dordai
Nicole
Kinsey
Tara
Salamone
Polina
Hanin
Liz
Tucci
Logan
Plaster
ABOUT STARTUP HEALTH
At StartUp Health we believe that with the right mindset, a
moonshot vision, and the spirit of an entrepreneur, anything is
possible. We also know that something magical happens when you
bring together people who are passionate about impacting people’s
lives for the better around common goals. That’s why since 2011,
we’ve been organizing a global army of Health Transformers to
solve the world’s biggest health challenges. Now more than ever
we think that it’s important to share the stories of the
entrepreneurs and innovators who are doing the extraordinary each
day with passion, purpose, imagination, persistence, courage, and
humility. These are the people who are reimagining the future of
health and impacting people’s lives. We hope you will join us in
supporting Health Transformers everywhere. Together we will
achieve the impossible. Together we will improve the health and
wellbeing of everyone in the world.
Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC
Nicole
Clark
ON A MISSION TO ACHIEVE HEALTH MOONSHOTS
At StartUp Health we are bringing together a new generation of entrepreneurs, investors, industry leaders, and government
organizations who are working on bold missions to transform health. Here are the Health Moonshots around which StartUp
Health has focused its efforts.
3Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC
AccesstoCareMoonshot
Together we can deliver quality care to 

everyone, regardless of location or income
CosttoZeroMoonshot
Together we can reduce the cost of care to “zero”
CureDiseaseMoonshot
Together we can rid the world of disease
CancerMoonshot
Together we can end cancer as we know it
Women’sHealthMoonshot
Together we can improve the health of every
woman, closing the gender gap
Children’sHealthMoonshot
Together we can ensure that every child has
access to quality care
NutritionandFitnessMoonshot
Together we can ensure access to food, water
and a healthy lifestyle
BrainHealthMoonshot
Together we can unlock the mysteries of the
brain to improve health and wellness
HappinessandMentalHealthMoonshot
Together we can connect mind, body and spirit
in the pursuit of wellbeing
AddictionMoonshot
Together we can end addiction and the opioid
epidemic
LongevityMoonshot
Together we can add 50 healthy years to 

every human life
DEALS & FUNDING INVESTORS SEGMENT DETAIL
Welcome to the most-funded year ever in digital health. Investments topped hundreds of millions of US dollars for the first time,
with funds funneling to a broader range of cities like Bengaluru and Nashville. Globally, investors are on track to nearly double
their 2017 investments, demonstrating long-term commitments, as well as overall growth potential in the market. The digital
health market is as potent as ever.
4
2018 END OF YEAR SUMMARY
Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC
Biggest Year Ever
2018 was the biggest year for digital health since StartUp
Health began tracking the market in 2010. Digital health
funding was 14 times more than what it was eight years ago,
and from 2017 to 2018, average deal size grew by $6M.
1
Funding The World’s Largest Health Needs
Companies providing mental health solutions received record-
breaking funding in 2018, $602M across 80 deals, tripling this
segment's funding since 2014. Patient empowerment received the
most funding of any function in 2018, $3B across 193 deals.
2
Digital Health = Health
In 2018, various technology types gained increased attention from
investors, including machine learning, blockchain, AI, and IoT.
Machine learning companies cut 66 deals to raise $940M, an 80%
increase in funding compared to 2017.
3
New Kids On The Block
Globally, new cities made their debut on the digital health scene
in 2018 as potential leaders of innovation and investment.
Companies headquartered in Nashville raised $380M in 2018,
while companies in Bengaluru and Toronto raised over $225M.
4
China Remains A Market Leader
Deregulation and health reform continue to fuel digital health’s
growth in China in 2018. Beijing and London closed the same
amount of deals in 2018, but larger deals in Beijing brought their
year total close to nearly five times that of London’s.
5
A Is The New C
Median deal size continues to climb, at every stage. The median
A round today (~$8M) is the size of a series C in 2013. Although
deal volume leveled off across all stages in Q4, median series C
deal sizes soared.
6
DEALS & FUNDING INVESTORS SEGMENT DETAIL
2010 2011 2012 2013 2014 2015 2016 2017 2018
Q1 Q2 Q3 Q4
153
283
476
647
608
568
684
851
765
FUNDING SNAPSHOT: YEAR OVER YEAR
5
Deal Count
$1.4B
$1.7B
$1.7B
$627M
$603M$459M
$8.2B
$6.2B
$7.1B
$2.9B
$2.3B
$2.0B
$1.2B
$11.7B
$2.3B
Funding surpassed 2017 numbers by almost $3B, making 2018 the fourth consecutive increase in capital investment and
largest since we began tracking digital health funding in 2010. Deal volume decreased from Q3 to Q4, but deal sizes spiked,
with $3B invested in Q4 alone. Average deal size in 2018 was $21M, a $6M increase from 2017.
$3.0B
$14.6B
DEALS & FUNDING INVESTORS SEGMENT DETAIL
Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC
Region
Total 2018
Deal Count
Total 2017
Deal Count
1 SF Bay Area 131 126
2 New York City 88 63
3 Boston 44 29
4 Los Angeles 25 21
5 Chicago 12 20
6 Minneapolis 11 11
6 Seattle 11 14
7 Austin 9 11
8 Baltimore 8 10
8 Miami 8 6
9 Denver 7 11
9 Philadelphia 7 12
Nashville made its debut on this map, raising the most funding in 2018 behind the usual suspects: NYC, San Francisco, and
Boston. The metro areas below account for nearly 70% of total digital health funding for 2018.
$122M
$1.7B
$111M
$3.8B
San Francisco
Bay Area
Denver
San Diego
New York City
Boston
$349M
Chicago
$364M
Minneapolis /
St. Paul
(11 Deals)
(7 Deals)
(131 Deals)
(5 Deals)
(12 Deals)
(88 Deals)
(44 Deals)
Austin
$199M
(9 Deals)
THE MOST ACTIVE U.S. METRO AREAS OF 2018
6
$110M
Baltimore
(8 Deals)
$213M
Los Angeles
(25 Deals)
*Map shows total funding YTD for top 10 metro areas by total dollars (USD)
$2.4B
(6 Deals)
Nashville
$380M
Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC
DEALS & FUNDING INVESTORS SEGMENT DETAIL

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StartUp Health Insights Global Digital Health Funding Report: 2018 Year End Review

  • 1. © 2018 StartUp Health, LLC STARTUP HEALTH INSIGHTS Global Digital Health Funding Report 
 Data through December 31, 2018 Report is inclusive of publicly available seed, venture, corporate venture, and private equity funding. Sign up to receive weekly funding insights at startuphealth.com/insider. 2018 Year End Report TM © 2019 StartUp Health Holdings, Inc.
  • 2. Pages Topic 3 ………………………………… Health Moonshots 4 ………………………………… 2018 Summary 5-15 ………………………………… Deals and Funding 16-18 ………………………………… Investors 19-22 ………………………………… Segment Detail 23-25 ………………………………… Health Transformers 26 ………………………………… Methodology StartUp Health InsightsTM Contributors Jennifer Hankin Mark Liber Anne Dordai Nicole Kinsey Tara Salamone Polina Hanin Liz Tucci Logan Plaster ABOUT STARTUP HEALTH At StartUp Health we believe that with the right mindset, a moonshot vision, and the spirit of an entrepreneur, anything is possible. We also know that something magical happens when you bring together people who are passionate about impacting people’s lives for the better around common goals. That’s why since 2011, we’ve been organizing a global army of Health Transformers to solve the world’s biggest health challenges. Now more than ever we think that it’s important to share the stories of the entrepreneurs and innovators who are doing the extraordinary each day with passion, purpose, imagination, persistence, courage, and humility. These are the people who are reimagining the future of health and impacting people’s lives. We hope you will join us in supporting Health Transformers everywhere. Together we will achieve the impossible. Together we will improve the health and wellbeing of everyone in the world. Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC Nicole Clark
  • 3. ON A MISSION TO ACHIEVE HEALTH MOONSHOTS At StartUp Health we are bringing together a new generation of entrepreneurs, investors, industry leaders, and government organizations who are working on bold missions to transform health. Here are the Health Moonshots around which StartUp Health has focused its efforts. 3Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC AccesstoCareMoonshot Together we can deliver quality care to 
 everyone, regardless of location or income CosttoZeroMoonshot Together we can reduce the cost of care to “zero” CureDiseaseMoonshot Together we can rid the world of disease CancerMoonshot Together we can end cancer as we know it Women’sHealthMoonshot Together we can improve the health of every woman, closing the gender gap Children’sHealthMoonshot Together we can ensure that every child has access to quality care NutritionandFitnessMoonshot Together we can ensure access to food, water and a healthy lifestyle BrainHealthMoonshot Together we can unlock the mysteries of the brain to improve health and wellness HappinessandMentalHealthMoonshot Together we can connect mind, body and spirit in the pursuit of wellbeing AddictionMoonshot Together we can end addiction and the opioid epidemic LongevityMoonshot Together we can add 50 healthy years to 
 every human life DEALS & FUNDING INVESTORS SEGMENT DETAIL
  • 4. Welcome to the most-funded year ever in digital health. Investments topped hundreds of millions of US dollars for the first time, with funds funneling to a broader range of cities like Bengaluru and Nashville. Globally, investors are on track to nearly double their 2017 investments, demonstrating long-term commitments, as well as overall growth potential in the market. The digital health market is as potent as ever. 4 2018 END OF YEAR SUMMARY Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC Biggest Year Ever 2018 was the biggest year for digital health since StartUp Health began tracking the market in 2010. Digital health funding was 14 times more than what it was eight years ago, and from 2017 to 2018, average deal size grew by $6M. 1 Funding The World’s Largest Health Needs Companies providing mental health solutions received record- breaking funding in 2018, $602M across 80 deals, tripling this segment's funding since 2014. Patient empowerment received the most funding of any function in 2018, $3B across 193 deals. 2 Digital Health = Health In 2018, various technology types gained increased attention from investors, including machine learning, blockchain, AI, and IoT. Machine learning companies cut 66 deals to raise $940M, an 80% increase in funding compared to 2017. 3 New Kids On The Block Globally, new cities made their debut on the digital health scene in 2018 as potential leaders of innovation and investment. Companies headquartered in Nashville raised $380M in 2018, while companies in Bengaluru and Toronto raised over $225M. 4 China Remains A Market Leader Deregulation and health reform continue to fuel digital health’s growth in China in 2018. Beijing and London closed the same amount of deals in 2018, but larger deals in Beijing brought their year total close to nearly five times that of London’s. 5 A Is The New C Median deal size continues to climb, at every stage. The median A round today (~$8M) is the size of a series C in 2013. Although deal volume leveled off across all stages in Q4, median series C deal sizes soared. 6 DEALS & FUNDING INVESTORS SEGMENT DETAIL
  • 5. 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q1 Q2 Q3 Q4 153 283 476 647 608 568 684 851 765 FUNDING SNAPSHOT: YEAR OVER YEAR 5 Deal Count $1.4B $1.7B $1.7B $627M $603M$459M $8.2B $6.2B $7.1B $2.9B $2.3B $2.0B $1.2B $11.7B $2.3B Funding surpassed 2017 numbers by almost $3B, making 2018 the fourth consecutive increase in capital investment and largest since we began tracking digital health funding in 2010. Deal volume decreased from Q3 to Q4, but deal sizes spiked, with $3B invested in Q4 alone. Average deal size in 2018 was $21M, a $6M increase from 2017. $3.0B $14.6B DEALS & FUNDING INVESTORS SEGMENT DETAIL Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC
  • 6. Region Total 2018 Deal Count Total 2017 Deal Count 1 SF Bay Area 131 126 2 New York City 88 63 3 Boston 44 29 4 Los Angeles 25 21 5 Chicago 12 20 6 Minneapolis 11 11 6 Seattle 11 14 7 Austin 9 11 8 Baltimore 8 10 8 Miami 8 6 9 Denver 7 11 9 Philadelphia 7 12 Nashville made its debut on this map, raising the most funding in 2018 behind the usual suspects: NYC, San Francisco, and Boston. The metro areas below account for nearly 70% of total digital health funding for 2018. $122M $1.7B $111M $3.8B San Francisco Bay Area Denver San Diego New York City Boston $349M Chicago $364M Minneapolis / St. Paul (11 Deals) (7 Deals) (131 Deals) (5 Deals) (12 Deals) (88 Deals) (44 Deals) Austin $199M (9 Deals) THE MOST ACTIVE U.S. METRO AREAS OF 2018 6 $110M Baltimore (8 Deals) $213M Los Angeles (25 Deals) *Map shows total funding YTD for top 10 metro areas by total dollars (USD) $2.4B (6 Deals) Nashville $380M Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC DEALS & FUNDING INVESTORS SEGMENT DETAIL
  • 7. Region Total 2018 Deal Count Total 2017 Deal Count 1 London 21 22 1 Beijing 21 15 2 Bengaluru 15 17 2 Stockholm 15 15 3 Singapore 14 8 4 Toronto 13 15 5 New Delhi 12 9 6 Tel Aviv 10 17 7 Vancouver 9 2 8 Berlin 8 9 Beijing and London closed the same number of deals in 2018, but larger deals in Beijing brought their year total close to nearly five times that of London’s. Bengaluru, where India’s IT industry began 25 years ago, is proving to be a major hub for digital health in Asia, closing the second largest number of deals in 2018. INTERNATIONAL METRO HUBS OF 2018 China 7 $198M $950M $105M$108M $262M Toronto London Paris Beijing Hangzhou $229M Bengaluru $131M Tel Aviv (21 Deals) (13 Deals) (7 Deals) (15 Deals) (21 Deals) (2 Deals) Zhenjiang $100M (1 Deal) $125M Shanghai (6 Deals) $79M Stockholm (15 Deals) (10 Deals) * Map shows top 10 metro areas by total dollars (USD) Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC DEALS & FUNDING INVESTORS SEGMENT DETAIL
  • 8. Company Round Total Function 1 $550M Wellness 2 $380M Personalized Health 3 $375M Insurance 4 $300M Biometric Data Acquisition 5 $300M Personalized Health 6 $300M Patient Empowerment 7 $291M Patient Empowerment 8 $250M Biometric Data Acquisition 9 $240M Clinical Workflow 10 $220M Biometric Data Acquisition The closing of a handful of mega deals each quarter continued to be the norm, not the exception. Peloton held its spot as the largest deal of 2018. This quarter, Smile Direct Club joined the list as the second largest deal of 2018. Deals made in 2018 represented more than half of ten digital health functions, with biometric data acquisition appearing most frequently. THE 10 LARGEST DEALS OF 2018 8Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC DEALS & FUNDING INVESTORS SEGMENT DETAIL
  • 9. THE TOP 10 INTERNATIONAL DEALS OF 2018 Company Total Raised Metro Area Function 1 $149M Beijing, China Population Health 2 $147M Beijing, China Education + Content 3 $146M Toronto, Canada Admin Workflow $133M Guangzhou, China Patient Empowerment $130M Beijing, China Patient Empowerment $127M Beijing, China Wellness $120M Bengaluru, India Wellness $115M London, England Research $103M Beijing, China Clinical Workflow 10 $100M Zhenjiang, China Education + Content More than half of the largest international deals of 2018 originated in China, with six of them occurring in Q3. Seven out of 10 digital health functions are represented in this year’s international deals. 9Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC DEALS & FUNDING INVESTORS SEGMENT DETAIL 4 5 6 7 8 9
  • 10. $.0B $.5B $1.0B $1.5B $2.0B Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 2015 2016 2017 2018 10 Funding includes Grail’s $914M Series B FUNDING SNAPSHOT: MONTHLY COMPARISON It was a hot summer for digital health funding. 2018 Q3 boasted the highest funded summer months compared to the previous four years, with July being the most lucrative month – almost $2B raised. Things cooled off the second half of the year, but not before a brief funding spike in October. Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC DEALS & FUNDING INVESTORS SEGMENT DETAIL
  • 11. FUNDING VELOCITY: FIVE THRIVING FUNCTIONS 11 Admin workflow and patient empowerment companies raised B rounds the quickest, while personalized health companies had the longest interval between series A and series B funding. Compared to series A, it took an average of 1.4 additional months to raise series B funding. .0% .05% .11% .16% 0 11 22 33 44 55 Number of Months From Series A to Series B (2013-2018 Data) Personalized Health 21.4 months Patient Empowerment 17.2 months Admin Workflow 17.2 months Average Time From A to B Round 18.6 months Wellness 20.9 months Distribution Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC DEALS & FUNDING INVESTORS SEGMENT DETAIL Research 18.7 months
  • 12. 2014 2015 2016 2017 2018 0% 25% 50% 75% 100% Seed Series A Series B Series C Series D Series E Series F + G + H 28% (121 Deals) 33% (142 Deals) 10% (43 Deals) 23% (102 Deals) *Deal count only includes seed though series H rounds and does not include venture rounds, accelerator funding, or growth equity. Deal Count* 396 326 385 DEAL ACTIVITY BY STAGE 487 12 Total share of seed rounds continued to decrease in 2018, while the percentage of mid-stage deals grew by ~15% compared to 2017. Series D and E deals account for six percent of total deals, which is the highest percentage we’ve seen in the last five years. 4364% Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC DEALS & FUNDING INVESTORS SEGMENT DETAIL
  • 13. DealCount 0 10 20 30 40 50 60 Series C DealCount 0 30 60 90 120 150 Series B DealCount 0 30 60 90 120 150 Seed 2014 2015 2016 2017 2018 MEDIAN ROUND SIZE: FUNDING ROUND COMPARISON 13 Fundraising rounds were bigger at every stage in 2018. Despite a decrease in seed and series A deal volume, median deal sizes rose in these early investment rounds. Series C deal volume leveled, but deal sizes soared, thanks to raises like Grail’s $300M series C round. Series B deals steadily increased in frequency and size. DealCount 0 30 60 90 120 150 Series A $2M
 
 $1M
 
 $0 MedianDealSize $8M
 $4M
 
 $0 MedianDealSize $20M
 
 $10M 
 
 $0 MedianDealSize $30M
 
 $15M
 
 
 $0 MedianDealSize Median Funding Amount Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC DEALS & FUNDING INVESTORS SEGMENT DETAIL
  • 14. FrequencyofDealSize 0 25 50 75 100 125 150 175 200 225 $1M $5M $10M $25M $50M $100M $150M $200M $250M $300M $350M $400M $450M $500M $750M $1.0B 2014 2015 2016 2017 2018 $380M $550M ROUND SIZE FREQUENCY: FUNDING GIANTS 14 The frequency of large mid-stage and early-stage deals continued to grow, with the largest jumps in $50M and $150M deals, at 46% and 100%, respectively. While this is on trend with years past, $1M, $5M, and $10M deals decreased by 68%, 16%, and 12%. Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC DEALS & FUNDING INVESTORS SEGMENT DETAIL
  • 15. STARTUP HEALTH PORTFOLIO: 2018 DEALS BY FUNCTION StartUp Health’s portfolio of health moonshot companies raised more than $356M across seven digital health functions in 2018. Devoted Health, Joint Academy, and Adheretech are making patient empowerment a priority, while Indago and Mediktor represent clinical workflow solutions. 6% 14% 17% 9% 11% 40% $356.6M TOTAL RAISED 40% 11%9% 17% 14% 3% 6% Company Function 1 Patient 
 Empowerment 2 Patient 
 Empowerment 3 Patient
 Empowerment 4 Clinical
 Workflow 5 Clinical
 Workflow Patient Empowerment Clinical Workflow Admin Workflow Wellness Personalized Health Biometric Data Acquisition Population Health Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC TOP 2018 DEALS DEALS & FUNDING INVESTORS SEGMENT DETAIL 15
  • 16. Firm 2018 Deal Count 2017 Deal Count Stage Early Mid Late 1 14 10 2 12 8 3 11 9 3 11 8 4 9 3 5 8 0 6 7 5 6 7 9 6 7 5 6 7 5 THE MOST ACTIVE INVESTORS OF 2018 16 A majority of 2018 investors on this list met or exceeded their 2017 deal count. BoxGroup and Y Combinator made the list for the first time this year, with BoxGroup tripling their number of investments compared to 2017. Khosla Ventures closed out the year with the most deals. Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC INVESTORS SEGMENT DETAILDEALS & FUNDING
  • 17. The most active investors of 2018 participated in a total of nine digital health functions. Khosla Ventures, New Enterprise Associates, and F-Prime Capital had the most diverse portfolios of 2018, each investing in seven different functions. Investors THE TOP INVESTORS OF 2018 BY FUNCTION 17 Research Biometric Data Acquisition Wellness Admin Workflow Patient Empowerment Clinical Workflow Insurance Personalized Health Population Health Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC INVESTORS SEGMENT DETAILDEALS & FUNDING
  • 18. 0 25 50 75 100 125 150 175 200 2010 2011 2012 2013 2014 2015 2016 2017 2018 2 3 4 5 6+ 1 The total number of unique investors in 2018 was just 10 shy of what we saw in 2017. Investments in two and three deals continued to trend upwards, increasing year over year. 174 284 299 488 611 647 921 1,247 1,237 InvestorCount # of Deals by Investor TOTAL INVESTORS YEAR OVER YEAR Total Unique Investors 18Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC INVESTORS SEGMENT DETAILDEALS & FUNDING
  • 19. MOST ACTIVE FUNCTION: PATIENT EMPOWERMENT 19 StartUp Health
 Company Spotlight: For patients with osteoarthritis, Joint Academy is a digital clinic that delivers a behavioral medicine protocol to prevent and reverse chronic OA symptoms. A certified therapist virtually guides the patient through the program and can oversee progress over time. Patient Empowerment Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC WHAT THESE COMPANIES CARE ABOUT Navigating the HC System Tele- medicine Patient Engagement Primary Care Specialty Agnostic Aging/ Senior Care TotalRaised $463.4M $591.8M $879.8M $1.1B $1.2B $417.5M Subsector Specialty $20M AVG DEAL SIZE $3.3B TOTAL RAISED SEGMENT DETAILDEALS & FUNDING INVESTORS • Across all major functions, companies working to empower patients along their health journeys received the most funding in 2018 • A majority of these patient empowerment companies focus on helping patients navigate the healthcare system and opening up direct communication with healthcare providers • Within this function, the most active specialty was primary care, followed by specialty agnostic companies and aging/senior care solutions • Largest patient empowerment deals of 2018 included: Devoted Health, American Well, and Bright Health
  • 20. DIGGING DEEPER: DIAGNOSTICS + SCREENING TOOLS StartUp Health
 Company Spotlight: Diagnostics / Screening For pharmaceutical companies who need a low cost, easy-to-use, non-invasive diagnostic in order to market new therapeutics for endometriosis, Oratel Diagnostics' offers a saliva-based diagnostic technology, ENDO-TEK, that can identify endometriosis with 90% accuracy. $32M AVG DEAL SIZE $2.3B TOTAL RAISED Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC Genetic Sequencing Hardware/ Medical Device Analytics Tool Machine Learning Artificial Intelligence TotalRaised $330.6M $397.1M$410.5M $486.9M $745.6M TRENDING TECHNOLOGY TYPES SEGMENT DETAILDEALS & FUNDING INVESTORS • Diagnostics/screening was the most funded digital health subsector in 2018 • Within this subsector, prevalent company specialties included oncology, genomics, and radiology • Genetic sequencing was the most funded technology type among diagnostics/ screening companies, which included to two of 2018’s largest deals: Grail and 23andme, each raising $300M • Hardware/medical device was the second most active technology type, with analytics tool, machine learning, and artificial intelligence close behind 20
  • 21. SECTOR TO WATCH: MACHINE LEARNING 21 YEAR OVER YEAR FUNDING 2014 2015 2016 2017 2018 $940M $520.8M $332.1M $103.4M$72.1M StartUp Health
 Company Spotlight: Machine Learning CarePredict is a smart sensor system for senior living facilities that minimize reliance on human observation in the care of seniors by utilizing continuous machine observation, sensing, and deep learning to trigger interventions and enabling the elderly to age independently, economically, longer.  $15M AVG DEAL SIZE $940M TOTAL RAISED Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC TotalRaised SEGMENT DETAILDEALS & FUNDING INVESTORS • Funding for companies utilizing machine learning technology to provide more productive and customized health solutions has increased year over year, taking the largest jump from 2017 to 2018 • Compared to 2017, average deal size increased by more than 50% • Within these companies, those providing diagnostics/screening, clinical decision support, and drug discovery tools were most active, constituting 65% of machine learning funding in 2018 • Largest deals included Linkdoc, Bind Health, and MeMed, accounting for a third of total funding within the machine learning sector
  • 22. MENTAL HEALTH: GETTING THE ATTENTION IT DESERVES 22 YEAR OVER YEAR FUNDING 2014 2015 2016 2017 2018 $602.2M $575.3M $419.2M$432.5M $192.3M StartUp Health
 Company Spotlight: Mental Health For the black male population of the United States, Henry Health provides culturally- sensitive self-care support and mental health services solution to achieve optimal wellness.   $11M AVG DEAL SIZE $602M TOTAL RAISED Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC TotalRaised SEGMENT DETAILDEALS & FUNDING INVESTORS • Companies focused on mental health received record-breaking funding, with total amount raised in 2018 more than tripling since 2014 • Mobile apps built for patients and consumers was a trending technology type, representing 77% of total funding in the mental health sector • Largest deals in 2018 included Doctor on Demand and Soyoung, raising $74M and $70M, respectively • As the stigma around mental health continues to decrease, we expect to see sustained growth into 2019 and beyond
  • 23. STARTUP HEALTH COMPANY MERGERS & ACQUISITIONS 23 September 2017 acquired by January 2017 acquired by October 2016 acquired by July 2016 acquired by May 2016 acquired by March 2016 acquired by June 2016 acquired by May 2015 acquired by March 2014 acquired by October 2013 acquired by July 2013 acquired by April 2017 merged with October 2016 merged with October 2016 acquired by December 2017 merged with December 2017 acquired April 2018 acquired by June 2018 acquired by June 2018 acquired Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC August 2018 acquired by
  • 24. STARTUP HEALTH’S GROWING ARMY 24Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC
  • 25. 25 JOIN THE MOVEMENT Meet the entrepreneurs transforming health on StartUp Health HQ. Join today at hq.startuphealth.com Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC
  • 26. Sectors: • We have a broad view of digital health and believe that the current trend is a cross-pollination of technology and data with all aspects of health and healthcare. StartUp Health InsightsTM tracks companies that enable health, wellness, and the delivery of care through data/analytics, sensors, mobile, internet-of-things, 3D printing, genomics, and personalized medicine. • StartUp Health tracks companies based on their Health Moonshot, function, applications, specialties, technology types, and end users. Investments in each of these tags are not mutually exclusive, as deals are tagged with multiple Moonshots, applications, specialties, end users, and technology types, based on the company’s focus. • These categorizations fall into the StartUp Health Moonshot ID to help define each company: • To achieve the MOONSHOT in SPECIALTY, COMPANY provides END USER with a FUNCTION TECHNOLOGY for APPLICATIONS. Stage of Funding: • StartUp Health InsightsTM records only publicly-available data on cash for equity investments as the cash is actually received by the company. StartUp Health InsightsTM is inclusive of accelerator, pre-seed, seed, venture, corporate venture, and private equity funding. • Early stage: The company has raised a Seed or Series A round • Mid stage: The company has raised a Series B or Series C round • Late stage: The company has raised a Series D or other growth equity round • StartUp Health also tracks accelerator rounds and other financings into privately-held entities (e.g. “unnamed” venture rounds, strategic investments, growth equity, and private equity). • In tabulating deal activity by stage we excluded rounds not clearly associated with a specific stage. 26 Sources: • Funding data is from StartUp Health InsightsTM, the most comprehensive funding database for digital health, and managed by the StartUp Health team. Information, data, and figures represent only publicly-available data. • Data for acquisitions slide was provided by a range of sources including StartUp Health InsightsTM, CrunchBase, AngelList, and news reports. • StartUp Health works to ensure that the information contained in the StartUp Health InsightsTM Report has been obtained from reliable sources. However, StartUp Health cannot warrant the ultimate validity of the data obtained in this manner. All data is subject to verification with the venture capital firms and/or the investee companies. Results are updated periodically. Therefore, all data is subject to change at any time. • If you find an error please let us know so we can correct it. This report is provided for informational purposes and was prepared in good faith on the basis of public information available at the time of publication without independent verification. StartUp Health does not guarantee or warrant the reliability or completeness of the data nor its usefulness in achieving any particular purposes. StartUp Health shall not be liable for any loss, damage, cost, or expense incurred by reason of any persons use or reliance on this report. This report is a proprietary aggregation of publicly-available data and shall not be forwarded or reproduced without the written consent of StartUp Health. METHODOLOGIES Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC
  • 27. 27© 2019 StartUp Health Holdings, Inc.