Every quarter, Health 2.0 releases a summary set of data that explains where industry funding is going, which product segments are growing fastest, and where new company formation is happening. Health 2.0’s precision and clarity when it comes to market segmentation and product information make this quarterly release the cream of the freebie crop.

1. HEALTH 2.0 QUARTERLY REPORT :: Q2 2016
QUARTERLYREPORTS
HEALTH 2.0 QUARTERLY REPORT :: Q2 2016
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2. HEALTH 2.0 QUARTERLY REPORT :: Q2 2016
REGULATORY HICCUPS
Health tech is still finding its footing with regulators. Zenefits devalued itself from
$4.5B to $2B after it violated state laws by selling health insurance with unlicensed
brokers. The FDA declined to approve Proteus’ sensor technology in anti-psychotic
pills, asking for more testing. In South Carolina, special interests blocked use of eye
exam kiosks and self-exams, causing eye startup Opternative to cease operations
in the state. On a better note, Texas is working to improve its telehealth laws.
META DATA
As more digital health companies emerge,a need to effectively sift through all of them
does also. Evidation Health ($11.6M), a joint venture of Stanford and GE Ventures, will
study the efficacy of health tech solutions through research. Ranked Health, an app
curation solution out from nonprofit Hacking Medicine, offers professional reviews of
other health apps. Jiff ($17.7M) aggregates all employer-purchased digital health tools
in its own app so that employees can access the solutions more easily.
BEHAVIORAL HEALTH
Mental health continues to be an area of hot interest forhealth tech. Affectiva,
an emotion analytics platform, raised $14M this quarter. Teletherapy company
TalkSpace another $15M to expand its primarily text-based services. Constant
Therapy, a firm that uses big data to target digital brain exercises to stroke
patients, released promising data from its app and added 3 scientific advisors.
BIG MOVES
Corporate giants continue laying hands in SMACK health, and this quarter was no
different. Medtronic and Qualcomm are joining forces on a new continuous
glucose monitoring system. Apple released CareKit, an open source framework
for developers to design health tech applications. Nokia acquired medical
product company Withings for $200M.
Things We Care About, Q22016

3. HEALTH 2.0 QUARTERLY REPORT :: Q2 2016
1925
CONSUMER FACING
1019
PROFESSIONAL
FACING
361
PATIENT PROVIDER
COMMUNICATION
480
DATA, ANALYTICS,
& EXCHANGE
3785
ALL COMPANIES
Health 2.0 tracks companies in our Source Database
according to one of four categories, one or more of nineteen
sub-segments, and any number of additional tags. This
categorization schema, developed in 2011, is far more rigorous
that any we’ve seen and consistently lets us distinguish
apples from oranges in a particularly bountiful space.
HEALTH 2.0 SOURCE ticked up this quarter,
adding 60 companies overall.The Consumer
Facing category added 25 companies,and the
Professional Facing category added 7 companies.
The Patient Provider Communication category
added 18 firms,while the Data,Analytics, and
Exchange category added 10.
Health 2.0 Source:Total Companies By Category
HEALTH 2.0 SOURCE COMPANIES BY CATEGORY, JUNE 2016

4. HEALTH 2.0 QUARTERLY REPORT :: Q2 2016
The lion’s share is still in North America,with 75% of digital health
companies located there.However,a strong contingent belongsto
Europe with 17%,as emerging sectors in Asia,Latin America,MENA
and even Africa continue to expand.
AS THEHEALTH 2.0 COMMUNITY grows around the world,it’s
being reflected in the Source database.Here’s a map of the world
showing the global distributionof companies
Health 2.0 Around the World
.2%
.7%
.6%
1.4%
4.9%
17.4%
75.1%

5. HEALTH 2.0 QUARTERLY REPORT :: Q2 2016
2011
1.0 B 1.6 B 2.2 B
4.6 B 4.8B
2012
3.5 B
2016
2013
2014
2015
FUNDING FOR THEHEALTH 2.0 space is still
on pace to equal or top last year’s funding.
Approximately $1.78B was invested from April
through July.
Funding KeepsFlowing
Funding for the second quarter has bested all of
our estimates. Q2 of 2016 totaled a whopping
$1.78B in deals, more money than we saw in 2012
for the entire year, and $500M of that came from
just one deal. Digital health companies are
attracting record interest, and it seems a funding
slowdown is nowhere in sight.
HEALTH 2.0 ANNUAL FUNDING

6. HEALTH 2.0 QUARTERLY REPORT :: Q2 2016
2.4B
CONSUMER FACING
THE CONSUMER FACING category continued to drive
venture funding.Behemothinternational deals for Ping An
Good Doctor ($500M) and Chunyu Yisheng ($183M)
impacted this quarter’s funding talliesdramatically.
Consumer Facing Funding STILL On Top
227M
PROFESSIONAL
FACING
225M
PATIENT PROVIDER
COMMUNICATION
560M
DATA, ANALYTICS,
& EXCHANGE
Two of the biggest deals this quarter:
*183M* 500M
2016 FUNDING BY CATEGORY AND QUARTER
*Q2: 100M
Q1: 127M
Q1: 312M
Q2: 248M
Q1: 120M
Q2: 105M
Q1: 1.14B
*Q2: 1.3B

7. HEALTH 2.0 QUARTERLY REPORT :: Q2 2016
THE TOP DEALS of Q2 2016 totaled to
$1.05B and represent nearly 68% of total
funding this quarter.
Hot Stuff: Top Funding Deals in Q2, 2016
CONSUMER FACING PROFESSIONAL
FACING
PATIENT PROVIDER
COMMUNICATION
DATA, ANALYTICS,
& EXCHANGE
TOP FUNDING DEALS OF Q2 2016
This quarter highlights massive deals – our top 3 represent
43% of all funding – and the promise of Chinese healthcare.
Ping An ($500M) and Chunyu Yisheng ($183M) are both
medical consultation apps, while Codoon ($50M) offers
wellness products to Chinese consumers. Clearly, there is a
huge healthcare market in a country with a billion people .
Stateside, Bright Health ($80M), led by a former United
Healthcare CEO, looks to enter the health insurance
marketplace with a model to rival Oscar’s. EarlySense
($25M) produces continuous monitoring devices for
patients. Anomali ($30M), though not solely a SMACK
health firm, focuses on data compromise detection that is
essential for HIPAA compliance.
500M
200M
100M
50M
25M

8. HEALTH 2.0 QUARTERLY REPORT :: Q2 2016
0 5 10 15 20 25 30 35 40 45 50
B2B-­Decision Support Analytics
Privacy & Identity
Data Utility Layer
B2B-­Administrative Tools
B2B-­Revenue Collection & Management
B2B-­Clinician Workflow
Professional Knowledge Exchanges
Patient-­Provider Communication
Provider Search
Coaching & Advisory Services
Personal Health Assessment & Diagnostic …
Clinical Trials Search & Recruitment
Gaming
Financial Management
Patient Communities
Search
Wellness
Content
Self-­Management Tools & Trackers
This year, our team has added hundreds of products to Source. We
saw the greatest gains in wellness, consumer products across the
board and in data management solutions. We expect product
growth to continue its strong trajectory and accelerate into 2017
as digital health funding continues to flame.
THIS GRAPH SHOWS the percentage growth
in product additions to Health 2.0 Source by
segment. Our team has steadily added
products to the Source as they are released,
creating a product encyclopedia for expert
market insight.
If You Remember One Thing: Products Are Not Companies, Companies Are Not Products
CONSUMER FACING
PROFESSIONAL FACING
PATIENT PROVIDER
COMMUNICATION
DATA, ANALYTICS,
& EXCHANGE
PRODUCT GROWTH BY SEGMENT IN PAST 12 MONTHS, HEALTH 2.0 SOURCE, JUNE 2016

9. HEALTH 2.0 QUARTERLY REPORT :: Q2 2016
ABOUT HEALTH 2.0 MARKET INTEL
Since 2007, Health 2.0 has catalyzed, tracked, and showcased the SMACK
(social/sensor, mobile, analytics, cloud & kindness!) revolution in health
information technology. Our longevity and independent industry
positioning gives us an unrivaled depth of knowledge.
Health 2.0’s Market Intelligence offerings range from this quarterly data
release to custom market research reports, and subscription access to the
Health 2.0 Source Database.
The Health 2.0 Source database serves as the foundation of our intelligence
products and includes detailed data on more than 3,700 companies and
4,500 products. To learn more about Health 2.0 Market Intelligence
offerings, please visit health2con,com or email
marketintel@health2con.com
ABOUT THE QUARTERLY REPORT
The Quarterly Report represents a summary set of data that explains
where industry funding is going, which product segments are growing
fastest, and where new company formation is happening. Health 2.0’s
precision and clarity when it comes to market segmentation and product
information make this quarterly release the cream of the freebie crop.
This report is provided for informational purposes and was prepared
in good faith and good fun. This report is a proprietary aggregation of
publicly and some privately available data and shall not be reproduced in a
different format without written consent of Health 2.0
QUARTERLYREPORTS
QUARTERLY REPORT CONTRIBUTORS
Matthew Holt Co-Chairman Prerna Anand Data Analyst Rachael Charbonneau Graphic Designer Sofia Noori Data Intern

10. HEALTH 2.0 QUARTERLY REPORT :: Q2 2016
ABOUT
Health 2.0 is the premiere showcase and catalyst for the advancement of
new health technologies. Through a global series of conferences, thought
leadership roundtables, developer competitions, pilot programs, and
leading market intelligence, Health 2.0 drives the innovation and
collaboration necessary to transform health and health care.
For more information visit health2con.com
HEALTH 2.0 QUARTERLY REPORT :: Q2 2016