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© 2017 StartUp Health, LLC
StartUp Health’s Insights Report
2017 Global Digital Health Funding


Data through June 30, 201...
startuphealth.com/reports
ABOUT STARTUP HEALTH
Pages Topic
2-3 ………………………………………….…………… About StartUp Health
4 …………………………………...
startuphealth.com/reports
1
Access to Care Moonshots
Delivering quality care to everyone, regardless
of location or income...
startuphealth.com/reports
DEALS & FUNDING GEOGRAPHY INVESTORS
- Steve Lohr, NYTimes
2017 has already surpassed previous ye...
startuphealth.com/reports
STARTUP HEALTH COMPANY FUNDINGS
5Source: StartUp Health Insights | startuphealth.com/insights No...
startuphealth.com/reports 6Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data ...
startuphealth.com/reports 7Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data ...
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2010 2011 2012 2013 2014 2015 2016 2017
YTD
Q1 Q2 Q3 Q4
160
302
499
672
593
530
613
306
Deal Cou...
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$0B
$0.417B
$0.833B
$1.25B
$1.667B
$2.083B
$2.5B
2010 2011 2012 2013 2014 2015 2016 2017 YTD
$15...
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$0B
$0.42B
$0.83B
$1.25B
$1.67B
$2.08B
$2.5B
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
201...
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Company $ Invested Subsector
1 $914M Big Data / Analytics
2 $600M Education / Training
3 $360M P...
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Company Location Subsector
Philadelphia, PA Patient/Consumer Experience
Los Angeles, CA Populati...
startuphealth.com/reports
While GRAIL’s $900M raise might have inflated the Big Data / Analytics market, Outcome Health com...
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2010
2011
2012
2013
2014
2015
2016
2017
0% 25% 50% 75% 100%
Seed Series A Series B Series C Seri...
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Funding($M)
$0M
$13M
$25M
$38M
$50M
2014 2015 2016 2017 YTD
Avg. Deal Size Avg. Seed Avg. Series...
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The digital health market continues to mature, with more Series A deals than Seed deals in the fi...
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FrequencyofDealSize
0
55
110
165
220
$1M $10M $50M $150M $250M $350M $450M $550M $650M $750M $85...
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Region (By Deal Count)
1 SF Bay Area
2 New York City
3 Boston
4 Los Angeles
5 Chicago
6 Minneapo...
startuphealth.com/reports Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data o...
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Firm 2017 YTD Deals Stage
Early Mid Late
1 7
1 7
2 6
2 6
3 5
3 5
3 5
3 5
THE TOP INVESTORS OF 20...
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0
13
26
39
52
65
78
91
104
117
130
2010 2011 2012 2013 2014 2015 2016 2017 YTD
2 3 4 5 6+
1
This...
A Spotlight on Caregiving
sponsored by
*Data sourced and
provided by:
* Data in following section is separate from StartUp...
By 2020, 117 million Americans are expected to need assistance of some kind, yet the overall number of unpaid caregivers i...
There continues to be a focus on funding technologies that make daily essential activities easier, including transportatio...
47%
45%
26%
Notable Deal Total Raised YTD Notable Investor Category
1 $600M Daily Essential Activities
2 $400M Daily Essen...
CAREGIVING MARKET MATURITY MAP Q2 2017
47%
Daily Essential Activities continues to be a high action segment of the market ...
Firm 2017 Q2 Deals Notable Deal
Early Mid Late
1 5
2 4
3 3
3 3
4 2
4 2
4 2
4 2
4 2
4 2
27
DEALS & FUNDING INVESTORSGEOGRAP...
startuphealth.com/reports Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data o...
startuphealth.com/reports
Sectors:
• We have a broad view of digital health and believe that the current trend is a
cross-...
startuphealth.com/reports
STARTUP HEALTH’S GROWING ARMY
Source: StartUp Health Insights | startuphealth.com/insights Note:...
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StartUp Health Insights Mid-Year Funding Report

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Over six billion dollars poured into the industry in nearly 300 deals in the first half of the year. 2017 is on track to be the most active year for funding by a significant margin.

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StartUp Health Insights Mid-Year Funding Report

  1. 1. © 2017 StartUp Health, LLC StartUp Health’s Insights Report 2017 Global Digital Health Funding 
 Data through June 30, 2017 Report is inclusive of seed, venture, corporate venture and private equity funding Sign up to receive weekly funding insights at startuphealth.com Mid-Year Report TM
  2. 2. startuphealth.com/reports ABOUT STARTUP HEALTH Pages Topic 2-3 ………………………………………….…………… About StartUp Health 4 ………………………………………….…………… Year End Summary 5-7 ………………………………………….…………… Moonshots 8-16 ………………………………………….…………… Deals and Funding 18-19 ………………………………………….…………… Geography 20-21 ………………………………………….…………… Investors 22 - 27 ………………………………………….…………… Spotlight on Caregiving 28 ………………………………………….…………… HEALTH TRANSFORMER 29 ………………………………………….…………… Methodologies Jennifer Hankin Polina Hanin Troy Bannister Mark Liber Anne Dordai Nicole Kinsey Tara Salamone StartUp Health InsightsTM Contributors Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC Niharika Gupta 2 In 2011, StartUp Health introduced a new model for transforming health by organizing and supporting a global army of entrepreneurs called Health Transformers. With the world’s largest digital health portfolio (200+ companies spanning 5 continents, 18 countries and 60+ cities), StartUp Health is mobilizing this rapidly growing army along with the world’s ‘batteries included’ leaders, innovators and investors to achieve 10 Health Moonshots, with a 25-year mission to improve the health and wellbeing of everyone in the world. Learn more about how you can join this movement and support Health Transformers at www.startuphealth.com.
  3. 3. startuphealth.com/reports 1 Access to Care Moonshots Delivering quality care to everyone, regardless of location or income 2 Cost to Zero Moonshots Radically reducing the cost of care by a factor of a million 3 Cure Disease Moonshots Curing disease using data, technologies and personalized medicine 4 Cancer Moonshots Ending cancer as we know it 5 Women’s Health Moonshots Prioritizing women’s health, including preventive care and new research 6 Children’s Health Moonshots Ensuring every child has access to quality care, particularly in underserved areas 7 Nutrition and Fitness Moonshots Providing access to a healthy environment and support an active lifestyle 8 Brain Health Moonshots Unlocking the mysteries of the brain to improve health 9 Mental Health and Wellbeing Moonshots Destigmatizing mental health and connect mind, body and spirit 10 Longevity Moonshots Adding 50 healthy years to every human life 10 HEALTH MOONSHOTS THAT ARE CHANGING THE WORLD One of the most exciting trends to emerge over the past few years is an ambitious generation of entrepreneurs, leaders and investors focusing on bold ‘Health Moonshots’. StartUp Health is organizing and supporting its global army of Health Transformers to focus on achieving these 10 Health Moonshots with a 25-year mission to improve the wellbeing of everyone in the world. Each Health Moonshot has the potential to help at least a billion people. 3Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC
  4. 4. startuphealth.com/reports DEALS & FUNDING GEOGRAPHY INVESTORS - Steve Lohr, NYTimes 2017 has already surpassed previous years in overall funding and the number of new and unique investors focused on digital health. We have also seen a number of mega deals, including Grail’s $914M and Health Outcomes $600M rounds. The San Francisco Bay Area by far leads the US for deal count with 47 total deals so far in 2017. Outside of the Bay Area, we continue to see widespread support for health innovation with several hubs both domestically and abroad gaining momentum. 4 The industry hit a major milestone in Q2 2017 with a staggering $3.8B total invested. In fact, this last quarter alone was larger than total annual funding for 2010 and 2011 combined. While the number of deals is flat, there have been an increasing number of $100M+ funding events. Biggest Quarter Ever: Q2 2017 1 On Track for Biggest Year Yet: With the mid-year funding amount spilling over $6B, 2017 has broken records in many categories including the most funding by the half-way point of the year. We anticipate this year to be the biggest yet as huge deals continue to trend more frequently. 2 We’ve already seen 10 deals over $100M in the first half of 2017 - which is now tied for the most deals over $100M in any year. Distribution of fundings spans multiple subsectors from Big Data to Patient Education to Wellness and others. Deal Size Continues to Grow 3 With Health Outcomes $600M raise, we see major investment and an ambitious Moonshot to focus on patient education. Patient Education Heats Up 4 Already, 2017 has seen almost as many unique investors active in the space as in all of 2014. This is perhaps one of the more notable trends, showing us that investors continue to find health innovation to be an exciting opportunity to deploy capital. New Investors Bet On Digital Health 5 Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC “People are increasingly choosing healthcare because, as they say, it’s the best problem.” MOONSHOTS 2017 MID YEAR SUMMARY CAREGIVING
  5. 5. startuphealth.com/reports STARTUP HEALTH COMPANY FUNDINGS 5Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC Health's Moonshot Moment has brought forward some incredible companies changing the digital health industry. These are just a few select companies in StartUp Health’s global army making major progress and receiving funding through the first two quarters of 2017. DEALS & FUNDING GEOGRAPHY INVESTORSMOONSHOTS WOMEN’S HEALTH CURE DISEASE ACCESS TO CARE CHILDREN’S HEALTH is on a mission to deliver crucial health services to 50M students annually through public schools that serve as the front line of pediatric care. SERIES A $6,400,000 COST TO ZERO is on a mission to transform how consumers find, learn about and use their health insurance. SERIES A $5,000,000 SERIES A $8,000,000 SEED $1,000,000 SERIES A $5,700,000 is on a mission to turn health conversation into a powerful medicine. is on a mission to ensure that the 200M+ expecting mothers throughout the world experience safe & healthy pregnancies. is on a mission to provide patients in developing countries with access to incredible quality diagnostic care from all over the world CAREGIVING
  6. 6. startuphealth.com/reports 6Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC DEALS & FUNDING GEOGRAPHY INVESTORSMOONSHOTS LONGEVITYBRAIN HEALTH CHILDREN’S HEALTH MENTAL HEALTH & WELLBEING COST TO ZERO SEED $1,000,000 SEED $1,500,000 SEED $200,000 SERIES A $1,000,000 SEED $1,000,000 is on a mission to help children with Autism Spectrum Disorder live more social lives is on a mission to decreases hospitalization expense for high-risk individuals with chronic conditions on a mission to transform the treatment of brain injuries through cloud-based tools that track and monitor brain performance over time is on a mission to provide relief to millions of patients through medical marijuana. is on a mission to amplify behavioral health services for the 100M+ Americans who suffer from mental illness Each of these companies in StartUp Health’s global army is working to improve their moonshot in unique ways, and the funding they received will help to contribute to our 25 year mission improve the health and wellbeing of everyone in the world. STARTUP HEALTH COMPANY FUNDINGS CAREGIVING
  7. 7. startuphealth.com/reports 7Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC DEALS & FUNDING GEOGRAPHY INVESTORSMOONSHOTS COST TO ZERO ACCESS TO 
 CARE ACCESS TO 
 CARE LONGEVITY SEED $1,000,000 SEED $1,500,000 SEED $200,000 SERIES A $1,000,000 is on a mission to improve patients' access to healthcare providers through an easy-to-use platform to schedule medical appointments. is on a mission to enable continuous monitoring of pulse oximetry to keep the chronic patient at home, well. is on a mission to empower healthcare organizations to measure the financial value of the products they purchase. is on a mission provide access and transparency to 120M+ Americans who do not have dental coverage. StartUp Health companies from across the globe are collaborating to transform health and find new ways to achieve their Health Moonshot. STARTUP HEALTH COMPANY FUNDINGS CAREGIVING
  8. 8. startuphealth.com/reports 2010 2011 2012 2013 2014 2015 2016 2017 YTD Q1 Q2 Q3 Q4 160 302 499 672 593 530 613 306 Deal Count $1.8B $2.1B $1.9B $897M $589M $470M $386M $8.3B $6.1B $7.2B $3.0B $2.4B $2.1B $1.1B DIGITAL HEALTH FUNDING SNAPSHOT: YEAR OVER YEAR 8Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC $6.5B $3.8B Over six billion dollars poured into the industry in nearly 300 deals in the first half of the year. 2017 is on track to be the most active year for funding by a significant margin. Substantial amounts of funding continues to pour into digital health. Deal sizes continue to grow as the industry matures. We expect this trend to continue and see more $100M+ raises as industry leaders find their way into mass market opportunities. “There’s nothing that touches the human soul more than your health.” -Bill McDermott, CEO, SAP DEALS & FUNDING GEOGRAPHY INVESTORSMOONSHOTS CAREGIVING
  9. 9. startuphealth.com/reports $0B $0.417B $0.833B $1.25B $1.667B $2.083B $2.5B 2010 2011 2012 2013 2014 2015 2016 2017 YTD $150M Series C $37.5M Venture $37.9M Venture $394M Venture $33M Series B $31M Series A $400M Series C $500M Series C R2 = 0.5564 $220M Series A Good Doctor $500M Venture DIGITAL HEALTH FUNDING SNAPSHOT: MONTH OVER MONTH 9 $500M Series A Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC $130M Series B $914M Series B Two massive spikes in March and May indicate large funding events in the first half of 2017 and continue to push private funding towards a more positive overall trend. $600M Venture$360M Series E DEALS & FUNDING GEOGRAPHY INVESTORSMOONSHOTS CAREGIVING
  10. 10. startuphealth.com/reports $0B $0.42B $0.83B $1.25B $1.67B $2.08B $2.5B Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 2014 2015 2016 2017 YTD DIGITAL HEALTH FUNDING SNAPSHOT: MONTH OVER MONTH 10Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC While May 2017 was an outlier, it continues to be an important month for funding with $1.7B being counted across 54 different companies. Funding including GRAIL’s $900M Funding Round & Health Outcomes $600M Funding Round DEALS & FUNDING GEOGRAPHY INVESTORSMOONSHOTS CAREGIVING
  11. 11. startuphealth.com/reports Company $ Invested Subsector 1 $914M Big Data / Analytics 2 $600M Education / Training 3 $360M Personalized Health 4 $325M Wellness 5 $231M EMR 6 $200M Patient / Consumer Experience 7 $161M Personalized Health 8 $160M Insurance 9 $130M Insurance 10 $115M Workflow THE TOP 10 LARGEST DEALS OF 2017 YTD The top 10 deals all came in over $100M by and we anticipate the trend of mega deals (over $100M) to continue as the market and companies mature. Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC 11 DEALS & FUNDING GEOGRAPHY INVESTORSMOONSHOTS CAREGIVING
  12. 12. startuphealth.com/reports Company Location Subsector Philadelphia, PA Patient/Consumer Experience Los Angeles, CA Population Health Cambridge, UK Patient/Consumer Experience Los Angeles, CA Research San Mateo, CA Big Data/Analytics Baltimore, MD Big Data/Analytics Basel, Switzerland Big Data/Analytics New York, NY Wellness CROSS SECTION: $10M DEALS Taking a look at the group of companies below, each who received a $10M investment this year, we see a cross section of both subsection focus and geographic location. Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC 12 DEALS & FUNDING GEOGRAPHY INVESTORSMOONSHOTS Typically, companies that raise around $10M have proven their business models and are about to rapidly scale. There is obvious market need for their particular product and what comes next is the challenge of building an operational foundation that can replicate the product at a much bigger scale. Keep an eye out for some of these companies in future reports. CAREGIVING
  13. 13. startuphealth.com/reports While GRAIL’s $900M raise might have inflated the Big Data / Analytics market, Outcome Health comes in as a close second in the Education sector, bringing this much needed segment of the health system into the spotlight. Subsector Total Raised YTD Deal Count Avg. Deal Size 1 Big Data / Analytics $1.2B 30 $40M 2 Education / Training $622M 4 $156M 3 Personalized Health / Quantified-Self $571M 13 $44M 4 Patient / Consumer Experience $579M 56 $10M 5 Medical Device $507M 45 $11M 6 Wellness $507M 28 $18M 7 Workflow $471M 46 $10M 8 Research $465M 18 $25M 9 Population Health $457M 30 $15M 10 EHR $374M 6 $62M “When you're running your own business it's a big leap of faith in yourself and you have to have a passion behind why you're doing it. It isn't just about making money, even more so in healthcare. We’re affecting people's lives and it's not just always about making a buck on every transaction. It's about helping people.” — Anthony Girand, CEO and Co-Founder, VoyagerMed THE TOP 10 MOST ACTIVE SECTORS OF 2017 YTD Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC 13 DEALS & FUNDING GEOGRAPHY INVESTORSMOONSHOTS CAREGIVING
  14. 14. startuphealth.com/reports 2010 2011 2012 2013 2014 2015 2016 2017 0% 25% 50% 75% 100% Seed Series A Series B Series C Series D Series E Series F + G + H 26% 35% 9%23% 5% *Deal count only includes Seed though Series G rounds. Does not include venture rounds or growth equity. Deal Count* 126 240 303 451 395 305 364 Companies are receiving funding at every stage including close to 50 Seed investments year to date. Early stage deals (Seed and Series A) make up over 60% of total deal activity. DEAL ACTIVITY BY STAGE Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC 194 14 DEALS & FUNDING GEOGRAPHY INVESTORSMOONSHOTS CAREGIVING
  15. 15. startuphealth.com/reports Funding($M) $0M $13M $25M $38M $50M 2014 2015 2016 2017 YTD Avg. Deal Size Avg. Seed Avg. Series A Avg. Series B Avg. Series C Average funding size has continued to trend upwards. Interestingly, the average Series C size has remained truncated while the Series B average has increased substantially. AVERAGE ROUND SIZES: 2014-2017 “Bringing me a piece of technology is becoming less and less interesting, bringing me a solution that I can describe to my colleagues is becoming far more important, and bringing me a solution that is meaningful to patients and consumers is of the highest value.” - Dr. Martin Harris, MD, CIO, Cleveland Clinic Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC 15 DEALS & FUNDING GEOGRAPHY INVESTORSMOONSHOTS CAREGIVING
  16. 16. startuphealth.com/reports The digital health market continues to mature, with more Series A deals than Seed deals in the first half of 2017. Several market segments have seen strong Series A investment activity, a promising sign for companies operating in Workflow, Big Data/Analytics, Wellness, Medical Devices, and Personalized Health/Quantified-Self subsectors. 47% Patient/Consumer Experience Wellness Personalized Health/Quantified-Self Big Data/Analytics Medical Devices Clinical Decision Support E-Commerce 9 8 8 5 3 9 12 6 2 2 8 12 3 2 0 6 10 5 1 1 3 10 5 1 0 4 10 5 2 1 5 1 4 4 0 2 1 2 0 3 0 2 3 0 0 1 1 2 0 1 1 1 1 0 0 0 0 0 0 0 Workflow Research Population Health EHR Education/Training Seed Series A Series B Series C Series D-H MARKET MATURITY MAP 2017 More funding activity Less funding activity Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC 16 DEALS & FUNDING GEOGRAPHY INVESTORSMOONSHOTS CAREGIVING
  17. 17. startuphealth.com/reports FrequencyofDealSize 0 55 110 165 220 $1M $10M $50M $150M $250M $350M $450M $550M $650M $750M $850M $950M 2014 2015 2016 2017 YTD $400M $448M $394M $500M $400M $500M Good Doctor Mega deals are emerging as a major trend in digital health. Four deals from the first half of 2017 make our top 11 deals since we began tracking digital health funding in 2010, including two of the biggest deals to date (Outcome Health, $600M & Grail, $914M). ROUND SIZE FREQUENCY: FUNDING GIANTS Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC 17 $600M $914M $360M $325M DEALS & FUNDING GEOGRAPHY INVESTORSMOONSHOTS CAREGIVING
  18. 18. startuphealth.com/reports Region (By Deal Count) 1 SF Bay Area 2 New York City 3 Boston 4 Los Angeles 5 Chicago 6 Minneapolis / St. Paul 7 San Diego 8 Seattle 9 Austin 10 Denver $83M $577M $308M $111M $2.3B San Francisco Bay Seattle San Diego New York City Boston $29M Austin $184M Minneapolis / St. Paul $192M Denver (7 Deals) (6 Deals) (65 Deals) (7 Deals) (5 Deals) (6 Deals) (21 Deals) (13 Deals) Los Angeles $58M (8 Deals) Chicago $897M (8 Deals) Funding continues to be significant in the Bay Area and in the Northeast, powered by a number of mega deals. However, we’re seeing active innovation hubs from Minneapolis/St. Paul to Denver to Seattle to Austin. Within these emerging innovation hubs, 24 companies received funding (13% of all deals), totaling just over $489M. THE MOST ACTIVE US METRO AREAS OF 2017 Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC 18 DEALS & FUNDING GEOGRAPHY INVESTORSMOONSHOTS CAREGIVING
  19. 19. startuphealth.com/reports Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC DEALS & FUNDING GEOGRAPHY INVESTORSMOONSHOTS NOTABLE GLOBAL ACTIVITY IN 2017 $50M Venture $200M Venture $15M Series B $28M Series C $60M Series B $50M Venture $55M Series D $40M Venture North America United Kingdom Europe / Israel Israel India China China Australia Global investment in digital health is accelerating with several significant deals in 2017 from the United Kingdom, Europe, Asia and Australia. CAREGIVING
  20. 20. startuphealth.com/reports Firm 2017 YTD Deals Stage Early Mid Late 1 7 1 7 2 6 2 6 3 5 3 5 3 5 3 5 THE TOP INVESTORS OF 2017 YTD We are seeing huge strides in new investors pouring money into the digital health market, however all the top 10 investors of 2017 year to date are either maintaining or increasing their investment activity. Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC DEALS & FUNDING GEOGRAPHY INVESTORSMOONSHOTS 20 CAREGIVING
  21. 21. startuphealth.com/reports 0 13 26 39 52 65 78 91 104 117 130 2010 2011 2012 2013 2014 2015 2016 2017 YTD 2 3 4 5 6+ 1 This year alone, close to 600 unique investors have put money into digital health - almost as many as all of 2015. 208 318 343 517 617 609 865 583 InvestorCount # of Deals by Investor NUMBER OF INVESTORS YEAR OVER YEAR Total Investors Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC DEALS & FUNDING GEOGRAPHY INVESTORSMOONSHOTS 21 “In the last couple of years, it became very clear to a number of us that we’re on the front end of a golden age of innovation in the business of healthcare” — Michael Greeley, Co-Founder, Flare Capital CAREGIVING
  22. 22. A Spotlight on Caregiving sponsored by *Data sourced and provided by: * Data in following section is separate from StartUp Health Insights. DEALS & FUNDING INVESTORSGEOGRAPHY Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC 22startuphealth.com/reports INVESTORS CAREGIVING
  23. 23. By 2020, 117 million Americans are expected to need assistance of some kind, yet the overall number of unpaid caregivers is only expected to reach 45 million. Technology holds great promise for helping to reduce the complexities, stress, and sheer hard work of these caregivers. Companies from established multinationals to startups, mass-market firms to niche players, are recognizing this caregiving market opportunity that’s expected to reach $72 billion in 2020 alone. 23 DEALS & FUNDING INVESTORSGEOGRAPHY Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC CAREGIVING INVESTMENT LANDSCAPE startuphealth.com/reports INVESTORS CAREGIVING
  24. 24. There continues to be a focus on funding technologies that make daily essential activities easier, including transportation, food delivery and other services that provide value to everyday tasks and errands. Lyft, battling it out with Uber for market takeover, led this quarter’s financing. It will be interesting to watch as Uber and Lyft continue to take huge financial losses to land more market share. 47% 45% 26% Category Raised YTD Deal Count Average Deal Size Notable Deal 1 Daily Essential Activities $1.9B 36 $53M 2 Care Coordination $488M 25 $19.5M 3 Transition Support $420M 36 $11.7M 4 Caregiver Quality of Life $399M 10 $40M 5 Social Wellbeing $300M 16 $19M 6 Health & Safety $273M 18 $15.2M * Includes company funding in multiple categories 24 DEALS & FUNDING INVESTORSGEOGRAPHY Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLCstartuphealth.com/reports CAREGIVING MARKET INVESTMENTS - Mid Year 2017 INVESTORS CAREGIVING
  25. 25. 47% 45% 26% Notable Deal Total Raised YTD Notable Investor Category 1 $600M Daily Essential Activities 2 $400M Daily Essential Activities 3 $325M Caregiver Quality of Life 4 $231M Care Coordination 5 $110M Transition Support 6 $90M Social Wellbeing 7 $77M Daily Essential Activities 8 $64M Transition Support 8 $63.5M Daily Essential Activities 8 $60M Transition Support A mix of health specific companies and companies that make life easier and better stack up in this quarter’s top deals. An interesting assortment of investors focus on supporting companies in the Caregiving space. 25 DEALS & FUNDING INVESTORSGEOGRAPHY Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLCstartuphealth.com/reports CAREGIVING MARKET TOP DEALS Q2 2017 INVESTORS CAREGIVING
  26. 26. CAREGIVING MARKET MATURITY MAP Q2 2017 47% Daily Essential Activities continues to be a high action segment of the market with rounds from Seed to Series G in just 1 quarter this year. 0 3 3 0 0 0 0 2 1 0 0 0 1 0 4 3 5 4 1 1 1 3 4 2 1 1 0 0 2 3 1 1 1 0 0 4 3 0 5 1 0 0 Seed Series A Series B Series C Series D Care Coordination Health & Safety Caregiver Quality of Life Social Wellbeing * Includes company funding in multiple categories Daily Essential Activities Transition Support 26 DEALS & FUNDING INVESTORSGEOGRAPHY Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLCstartuphealth.com/reports Series E Series G INVESTORS CAREGIVING
  27. 27. Firm 2017 Q2 Deals Notable Deal Early Mid Late 1 5 2 4 3 3 3 3 4 2 4 2 4 2 4 2 4 2 4 2 27 DEALS & FUNDING INVESTORSGEOGRAPHY Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLCstartuphealth.com/reports CAREGIVING MARKET VENTURE INVESTORS Q2 2017 Sequoia Capital’s financing put it at no. 1 in the Caregiving space, beating out other regulars, such as Andreesen, Khosla and Bessemer. Interestingly, there is still plenty of activity across these investors in early and mid stage deals. Stage INVESTORS CAREGIVING
  28. 28. startuphealth.com/reports Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC 28 Read some top Digital Health articles from StartUp Health’s new Digital Magazine: HEALTH TRANSFORMER!
  29. 29. startuphealth.com/reports 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 and genomics and personalized medicine. • StartUp Health tracks companies based on their sectors, subsectors and specialties. Investments in subsectors and specialties are not mutually exclusive, as deals are tagged with multiple subsectors and specialties based on the company’s focus. • Q2 of 2015 brought with it an extensive database quality assessment. A new system was implemented allowing StartUp Health to track innovation with enhanced granularity. Additionally, gaps in funding data were researched and added into our database enabling us to identify fundings previously unaccounted for in previous reports. 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 incubator 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. 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 on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC 29
  30. 30. startuphealth.com/reports STARTUP HEALTH’S GROWING ARMY Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC

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