Asia HealthTech Investment Landscape 2017 Full Year report

HEALTHTECH
INVESTMENT
LANDSCAPE
ASIA
FULL YEAR 2017
INVESTMENT TRENDS
• Key Findings
• Asia Pacific
• China Focus
• Rest of Asia Focus

1
We are pleased to share the 2017 Full Year Asia HealthTech Investment
Landscape report, a full update of our most popular report in 2017.
As we predicted last July, 2017 was a record-breaking year for HealthTech in
Asia Pacific with funding exceeding the US$2.6B mark! Asia also saw a
landmark of 230 deals executed in 2017, thus doubling 2016’s total.
We observed investors in the ecosystem become more confident, and willing
to make larger investments in HealthTech companies. The overall distribution
of 2017 funding in Series B and C deals accounted for 55% of total funding
versus 15% in 2016.
Although we believe it is still a little soon for exits in view of the average
maturity lifecycle in HealthTech versus other verticals, we fully expect to see a
growing number of Asia HealthTech IPO transactions in 2018.
Galen Growth Asia is significantly expanding the information on each
HealthTech venture it tracks and we will be announcing further information on
this and our new insights in the coming weeks.
We would love to hear your opinion of this report, your ideas to improve it or
simply to share with us relevant Asia HealthTech deal or transaction
information.
JULIEN DE SALABERRY
Co-founder,
Managing director

2©2018 by Galen GrowthAsia - All rights reserved.
In partnership with corporations, government organisations,
startups and key stakeholder groups, Galen Growth Asia is building
an integrated innovation ecosystem focused on HealthTech
startups to innovate, disrupt and solve our healthcare systems pain
points.
Galen Growth Asia believes that HealthTech will play a central role
in addressing Asia’s Health System Inefficiencies in an effective
and efficient manner and thus significantly improving the standard
of healthcare in the region.
Through our focus on enabling both social value and investing
opportunities, we mobilise thought leaders in healthcare and
technology, support innovators in HealthTech to inform their
solutions and business models, and provide valuable insights for
business development and investment opportunities.
ASIA'S HEALTHTECH CONNECTOR
ABOUT GALEN GROWTH ASIA
Galen growth asia

3
Galen Growth Asia has built the only comprehensive Asia
HealthTech database in which it tracks important
information and data points about the growing Asia
startup HealthTech ecosystem, vital to monitor its pulse.
The database contains a significant and growing
proportion of the region’s HealthTech ventures and, for
each one, numerous highly relevant data points including
funding and other key business performance information.
Subscribe via our website to receive further information.
©2018 by Galen GrowthAsia - All rights reserved.
ABOUT OUR HEALTHTECH DATABASE
$2.6
BILLION
3000+
STARTUPS
Galen growth asia

In 2017, Asia HealthTech, exceeds 2016, raising
more than
$2.6 BILLION
ACROSS
230 DEALS

KEY FINDINGS
5
MORE DEALS THAN EVER!
2017 Asia HealthTech funding, overtook 2016, breaking all
records and, as predicted by Galen Growth Asia last July,
exceeded US$2.6B. Almost doubling 2016’s total number
of deals, 2017 saw 230 deals executed. The region’s top
10 deals represent 40% of total deal value in 2017.
DISTRIBUTION OF DEALS
Early stage and Series A deals, accounting for 27% of all
funding deployed in 2017, continue to represent the
significant majority of deals by volume.
SERIES B & C STRENGTHEN WHILST SERIES A LOSES
MOMENTUM
Series A, B and C deals recorded a 1.5x, 3x and 6x
increase in volume respectively. Despite this, Series A
halved in total value raised whereas Series B and C
achieved 3x and 5x increases respectively YoY.
CHINA REMAINS IN THE LEAD
China’s total HealthTech deal share by value represents
76% of total funding deployed in 2017 in HealthTech.
The top 7 deals in China represent 35% of the total
investment in HealthTech in Asia.
TOP 3 HEALTHTECH CATEGORIES ABOVE ALL
Medical Data & Analytics, Health Services Search and
Telehealth/ Remote Monitoring have consistently
attracted the most funding in 2017 and 2016.
FIVE HEALTHTECH POLES EMERGE
China, India, Singapore, Australia and Indonesia
combined are home to over 80% of all HealthTech
startups in Asia.
Galen growth asia

©2018 by Galen GrowthAsia - All rights reserved. 6
Our analysis of HealthTech
investments tracks activities across
23 distinct markets in Asia Pacific.
We are continuously monitoring
countries that are not listed here.
THE ASIA PACIFIC MAP
FRONTIER MARKET
1) Bangladesh
2) Bhutan
3) Cambodia
4) Laos
5) Myanmar
6) Nepal
7) Pakistan
DEVELOPING MARKET
1) China
2) India
3) Indonesia
4) Malaysia
5) Philippines
6) Sri Lanka
7) Thailand
8) Vietnam
MATURE MARKET
1) Australia
2) South Korea
3) Hong Kong
4) Japan
5) New Zealand
6) Singapore
7) Brunei
8) Taiwan
Galen growth asia

INVESTMENT
TRENDS
ASIA PACIFIC

• 75% of known HealthTech startups in
Asia are concentrated across 4 markets:
• 33 % in India
• 22 % in China
• 11 % in Singapore
• 9% in Australia
• Despite its size, Singapore is host to
11% of Asia HealthTech startups driven
by its ongoing investments in
technology innovation and its very
favourable economic and legal climate
• Excluding the 4 markets referred to
above, the remainder of Asia is host to
just 25% of the Asia HealthTech
ecosystem despite being a mix of
mature, developing, and frontier markets
ASIA HEALTHTECH KEY MARKETS
Countrieswith less than 2% market share: Bangladesh, Malaysia, Philippines, Taiwan, and Vietnam.
India33%
China22%
Singapore11 %
Indonesia6%
Australia9 %
South Korea2.5%
Japan5%
Thailand3%
Hong Kong3%
Galen growth asia

• China and India continue to maintain
their leadership in deal-making with 78%
of all deals by volume, and 90% of all
funding by value between the two
• Singapore, Australia, and Japan saw an
increase in the volume of deals
executed throughout the year from 11%
in H1 to 15% in H2. However deal value
share reduced from 13% in H1 to 6.5% in
H2
• Of note, Hong Kong’s share of deal
value which spiked, this year, as a result
of the $40M Prenetics successful fund
raise in October 2017 matched Japan
where 10 deals were closed
2017 ASIA HEALTHTECH INVESTMENTS
SHARE BY COUNTRY
Other deals: Malaysia (2), SouthKorea (2), Cambodia (2), Taiwan (2), Bangladesh (2), Philippines (1), Vietnam (1).
Total Volume Share (%)
9
106
$1.9B
China
TotalAmountInvested($M)
The number in the bubblesdescribes the number of closed deals. China’s total deal value also included to accomm
100
50
400
25
5% 10% 20% 30% 40% 50%
200
0
India
73
Indonesia3
Hong Kong
2 Japan10
Australia8
Singapore15
Galen growth asia

• 2017 is a record-breaking year where total
funding deployed exceeded $2.6B
• The total number of deals closed in 2017
almost doubled while funding grew by
approximately 16% compared to 2016
• The higher deal count demonstrates the
continued fast growing vibrancy of
the region’s ecosystem
• The most notable and sizable deal in 2017
was the $200M Series D by Hao Daifu
ASIA HEALTHTECH FUNDING HISTORY
2017 VS 2016
$1,284
$2,015
$2,239
$751
$1,271
$1991
$2,602
Q1 Q2 Q3 Q4
56
31
85
116
71
230
196
153
2016 Investments ($M)
2017 Investments ($M)
2016 Deals
2017 Deals
$241
Galen growth asia

• In 2017, we saw a growing investor
appetite for Series B & C deals reflecting
the ecosystem’s pipeline of startups
maturing
• Although we welcome the growth in
Early stage volume, we note that the
average deal size in 2017 is shrinking: will
we see Series B average funding size
reducing in 2018 or additional Series A
stages e.g. A1, A2, etc.?
• There was no disclosed Series E funding
round in 2017
• It also should be noted that 2017 saw a
significant growth of deal volume for each
stage with Series A, B and C achieving a
minimum of doubling in volume
ASIA HEALTHTECH FUNDING VALUE BY STAGE
2017 VS 2016
0
250
500
750
1,000
Angel Seed Pre-A Series A Series B Series C Series D Series E
TotalFundingperStage($M)
2016 2017
Galen growth asia

• Number of deals per quarter reached its
peak in Q2 2017 but decelerated in H2 to
end at a similar level to Q4 2016
• Overall, 2017 witnessed a more
consistent total funding deployed every
quarter which contributed to executing
more deals in comparison to 2016
• Q2 2016 is an outlier by total value as a
result of the super-normal $500M Series
A investment by Ping An in Good Doctor –
the latter reported to be filling for an IPO
in 2018 (Source: Reuters)
QOQ ASIA HEALTHTECH FUNDING HISTORY
2017 VS 2016
$241
$1,043
$731
$225
$751
$520
$720
$641
31
25
29 31
71
82
43
34
Investment in $M Deals
Galen growth asia

• Q4 2017 witnessed a significant growth in
the number of Series A, B and C deals
signed
• Q1- Q3 2017 maintained a stable flow of
Early and Pre-A funding rounds
• Overall, Series B deal volume expanded
consistently over the last 6 quarters.
Similarly, Series C volume grew steadily
over the last 3 quarters
QOQ ASIA HEALTHTECH DEAL VOLUME SHARE BY STAGE
2017 VS 2016
Deals data excludeunspecific funding stage
13
41%
46% 45% 47% 49% 48% 49%
28%
45% 33%
31%
40%
28% 30% 22%
28%
14%
13%
7%
10%
13%
17%
28%
4%
7%
7%
5%
10% 16%
4%
3%
3% 3%
7%
Q1' 16 Q2' 16 Q3' 16 Q4' 16 Q1' 17 Q2' 17 Q3' 17 Q4' 17
Early & Pre-A Series A Series B Series C Series D Series E
17%
2%
Galen growth asia

• 2016 apparent deal size exuberance
sobered in 2017
• After 6 quarters of steady Early and Growth
stage median deal size, H2 2017 witnessed a
3x increase in Early stage deals value
compared to H1 2017 and 2x compared to H2
2016
• The increase in volume and deal value of
Series B and C deals has had an uptick effect
on the median growth stage deal size
• The largest deals in 2017 by value were the
$200M investment in Dao Daifu from H1,
closely followed by Wuxi NextCode’s $165M
Series B extension investment in H2
ASIA HEALTHTECH DEAL SIZE RANGES AND MEDIAN
2017 VS 2016
$0.5M
$1M
$0.6M
$2.2M
$10M
$12M
$11M
$19M
$500M
$437M
$200M
$165M
Median early-stage deals
Median Growth-stage deals
Largest Deal
H12016H22016H12017H22017
Galen growth asia

ASIA HEALTHTECH MOST FUNDED CATEGORIES BY VALUE
15©2018 by Galen GrowthAsia - All rights reserved. Galen growth asia

• 3 categories have consistently dominated
in the past two years
• In 2017, the top 5 represented 58% of all
deal volume
• Mobile Fitness & Health apps is the new
kid on the block
• Other than in H2 2016, Online Marketplace
continues to maintain its top 5 position
• Will Medical Data & Analytics still be in
pole position in 2018?
ASIA HEALTHTECH CATEGORY SHARE BY VOLUME
H1 2016 H2 2016 H1 2017 H2 2017
1
2
3
4
5
Galen growth asia

Based on the funding data we have tracked to date, the general funding timeline and quanta for a HealthTech startup
in Asia is shaping up as follows:
THE ASIA HEALTHTECH FUNDING TIMELINE
Incorporation
Min. funding: 0.1M
Max. funding: 2.9M
Ave. funding: 1.2M
See
d
Min. funding: 0.2M
Max. funding: 9.0M
Ave. funding: 1.9M
Min. funding: 1M
Max. funding: 5M
Ave. size: 2.6M
Min. funding: 1.5M
Max. funding: 40M
Ave. funding: 10M
Angel Series APre-A Series B Series DSeries C
0-1
years
1-2
years
2
years
4
years
4-5
years
5
years
>9
years
Min. funding: 6M
Max. funding: 165M
Ave. funding: 24.1M
Min. funding: 8.6M
Max. funding: 105M
Ave. size: 32.3M
Funding size:
>100M
17
Galen growth asia

• Total funding in 2017 remains flat at $1.97B, just
shy of 2016’s $2.08B
• After a deceleration in Q4 2016 of funding, Q1
2017 kicked off strongly and set the tone for the
full year
• Total deal count in 2017 increased by more
than 100% compared to 2016
• Quarterly total funding value throughout 2017
was more consistent than in 2016
• The most sizable deal in 2017 was the
$200M Series D by Hao Daifu
• Q2 2016 was an outlier by total value as a result
of the super-normal $500M Series A investment
by Ping An in Good Doctor – the latter reported
to be filling for an IPO in 2018 (Source Reuters)
QOQ CHINA HEALTHTECH FUNDING HISTORY
$200
$1,015
$665
$200
$604
$326
$586
$463
13
12
8
16
37
31
22
16
Galen growth asia

• 2017 saw fewer Series D and E deals
than in 2016 counter balanced by a
strong growth in the number of Series A
B, C deals
• Will we therefore witness more Series
D and E deals in 2018?
• It is interesting to note that Early & Pre-
A deal volume share in China is weaker
than across the remainder of the region
QOQ CHINA HEALTHTECH DEAL VOLUME SHARE BY STAGE
2017 VS 2016
Deals data excludeunspecified funding stage
20
25%
17%
13%
31% 32%
26%
35%
19%
42%
50%
25%
44% 38%
39%
25%
31%
33%
17%
13%
19%
16% 26%
30%
25%
8%
25%
11%
10%
5%
25%
8%
13%
6% 3% 5%
13%
Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017
Galen growth asia

2017 CHINA HEALTHTECH MEGA DEALS
$200.0M
Series D
February
Series B
September
Series B
August
Series C
November
Series C
November
Series A
February
Strategic
August
Hao Daifu
$165.0M
$152.0M
$105.0M $101.0M $100.0M $100.0M
Wuxi
Nextcode
固生堂
中医
3D
Med
CloudMinds
Annoroad
Ankon
Technologies
21
Galen growth asia

INVESTMENT
TRENDS
REST OFASIA
(Excluding China)

• After a timid 2016, 2017 experienced
strong growth both in value and volume
• 2017 saw a ~2x increase in deal volume
driving an impressive ~3.6x increase in total
deal value
• H2 2017 witnessed a slowing of the H1
2017 deal volume momentum
• 60% of total deal value in rest of Asia can
be attributed to deals in India alone,
representing a 4x YoY
QOQ REST OF ASIA HEALTHTECH FUNDING HISTORY
2017 VS 2016
$41
$28
$66
$25
$147
$195
$104
$139
18
13
21
15
34
51
20
16
$ -‐
$ 2 0

$ 4 0

$ 6 0

$ 8 0

$ 1 0 0

$ 1 2 0

$ 1 4 0

$ 1 6 0

$ 1 8 0

$ 2 0 0

0
1 0
2 0
3 0
4 0
5 0
6 0
23
Galen growth asia

• Q4 2017 witnessed a build up of
momentum for Series A, B and C
• The last quarter of 2017, India
witnessed a strengthening of Series A
deal volume equivalent to the sum of
Series B and C
• Over the past two years, approximately
60% of volume has been Early and Pre-A
deals, which is reflective of the growing
maturity of these markets
• Will we therefore see a build up of
Series A, B and C deals in these markets
in 2018?
QOQ REST OF ASIA HEALTHTECH DEAL VOLUME SHARE BY STAGE
2017 VS 2016
Deals data excludeunspecific funding stage
24
53%
75%
57%
64% 68% 63% 62%
43%
47%
17%
33%
36%
18% 24% 19%
14%
8%
5%
9%
11%
5%
36%
3%
2%
14% 7%
5% 3%
Galen growth asia

2017 REST OF ASIA HEALTHTECH MAJOR DEALS
Series A
April
Series C
August
Series C
November
$40.0M $40.0M
$26.0M
Series B
August
Series B
February
$55.0M
$40.0M
Series D
January
Series B
October
Practo
Prenetics
$40.0M
$30.0M
$26.0M $25.0M $25.0M
Healthcare
at Home
Med
Genome
Portea CXA CureFit
25
Galen growth asia

• Even though India continues to grow in
deal volume, the other markets in this
group experienced a higher level of
activity in 2017
• Singapore continues to attract Asia
HealthTech startups driven by its
ongoing investments in tech innovation
and its very favourable economic and
legal climate
• Rest of Asia is entering 2018 with
strong momentum which is contributing
to the overall deal vibrancy in the
ecosystem in the region
REST OF ASIA HEALTHTECH INVESTMENT COUNTRY DISTRIBUTION
India
65%
Singapore
13%
Japan
9%
Australia
7%
Indonesia
3%
Malaysia
2%
Vietnam
1%
2017
India
71%
Singapore
13%
Japan
5%
Australia
8%
Indonesia
3%
2016
26
Galen growth asia

METHODOLOGY
WHAT WE DEFINE AS HEALTHTECH
HealthTech defines the intersection between healthcare and
technology and is also sometimes referred to as digital health.
HealthTech does not include Biotech, such as protein research or
pharmaceuticals, and also does not include MedTech, such as
devices that are implanted into the body.
WHAT INFORMATION DO WE TRACK
Galen Growth Asia tracks a comprehensive inventory of key data
points ranging from company demographics to funding and
valuation on an evolving and curated list of HealthTech ventures
drawn from all markets in Asia Pacific.
WHERE DO WE SOURCE OUR INFORMATION
Galen Growth Asia collates its data from primary research, public
domain sources (press releases and news) and from its unique
network. The information is both disclosed and undisclosed by
nature.
LEXICON
YoY: Year on year
QoQ: Quarter on quarter
Consult www.galengrowth.asia for further information.
IMPORTANT INFORMATION
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.
Galen Growth Asia does not guarantee or warrant the reliability
or completeness of the data nor its usefulness in achieving any p
articular purposes.
Galen Growth Asia shall not be liable for any loss, damage, cost o
r expense
incurred by reason of any persons use or reliance on this report.
This report is a proprietary aggregation of publicly available and
undisclosed data and shall not be forwarded
or reproduced without the prior written consent of
Galen Growth Asia.
27 Galen growth asia

We hope you liked this
report and that our
HealthTech passion
has contaminated you :)

Asia HealthTech Investment Landscape 2017 Full Year report

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