StartUp Health Insights Mid-Year Funding Report

© 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
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Mid-Year Report
TM

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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.

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

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
“People are
increasingly
choosing
healthcare
because, as
they say, it’s the
best problem.”
MOONSHOTS
2017 MID YEAR SUMMARY
CAREGIVING

STARTUP HEALTH COMPANY FUNDINGS
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

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
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.
CAREGIVING

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
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.
CAREGIVING

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
$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

$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
$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

$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
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

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

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.
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

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

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
194
14

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

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

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
$600M
$914M
$360M
$325M

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

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
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

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.
20
CAREGIVING

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
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

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

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
CAREGIVING INVESTMENT LANDSCAPE

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
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

47%
45%
26%
Notable Deal Total Raised YTD Notable Investor Category
1 $600M Daily Essential Activities
3 $325M Caregiver Quality of Life
4 $231M Care Coordination
5 $110M Transition Support
6 $90M Social Wellbeing
8 $63.5M Daily Essential Activities
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
CAREGIVING MARKET TOP DEALS Q2 2017

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
Series E Series G

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
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

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!

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

STARTUP HEALTH’S GROWING ARMY

StartUp Health Insights Mid-Year Funding Report

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