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 :: Q4 2016
QUARTERLYREPORTS
HEALTH 2.0 QUARTERLY REPORT :: Q4 2016
BROUGHT TO YOU BY:

2. HEALTH 2.0 QUARTERLY REPORT :: Q4 2016
LEGISLATION 2.0
Digital health enjoyed the attention of national and state legislators in 2016.
Congress passed the 21st Century Cures Act, which shed more light on the FDA
regulation of software in healthcare. The Senate passed the ECHO bill, which
expands access to tele-consults for rural physicians, and the FDA is looking to
revisit its regulatory standards for software as a medical device (SaMD). And
forward-thinking Massachusetts just launched its State Digital Health Council.
NEUROTECH
The last quarter of 2016 was unusually good for the brain. Google’s Verily released
Liftware Level, a smart spoon for consumers with hand tremors. GE and the NFL have
collaborated on a telemedicine initiative to help amateur footballers access advice
when they suffer a concussion. Houston-based BrainCheck raised $3M for a mobile
neurocognitive assessment app, while Savonix announced the launch of their own
assessment tool. In perhaps the most intriguing news, MobiHealthNews discovered in
their FDA scoop that Apple is developing an app to diagnose Parkinson’s disease.
SMART…FERTILITY?
Entrepreneurs are breaking in to the fertility market, and finding that it isn’t all
about women. Medical Electronics Systems released YO, an automated semen
analyzer that clips onto a smartphone (sanitizer not included). Berlin-based Clue
raised $20M for a period-tracking app, and Zurich’s Ava raised $9.7M for a fertility
tracking wearable. NYC-based Progyny launched their rebrand and new website
focused on helping would-be parents navigate their fertility benefits.
CARDIAC MONITORING
The heart, once the domain of lovers, is fast becoming the domain of SMACK
health. iRhythm, which creates wearable heart monitors, went public with a
$107M IPO. Nanowear received FDA clearance for an EKG monitor garment, and
Cardiogram raised $2M in a bid to detect arrythmias using the Apple Watch. JAMA
Cardiology published an article proclaiming the Apple Watch as the most accurate
wearable for heart rate monitoring.
Things We Care About, Q4 2016

3. HEALTH 2.0 QUARTERLY REPORT :: Q4 2016
1996
CONSUMER FACING
1030
PROFESSIONAL
FACING
392
PATIENT PROVIDER
COMMUNICATION
494
DATA, ANALYTICS,
& EXCHANGE
3912
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: Total Companies By Category
HEALTH 2.0 SOURCE COMPANIES BY CATEGORY, DECEMBER 2016
HEALTH 2.0 SOURCE ticked up this quarter,
adding 44 companies overall. The Consumer
Facing category added 25 firms, and the
Professional Facing category added one new
addition. The Patient Provider Communication
category added 10 companies, while the Data,
Analytics, and Exchange category added 8.

4. HEALTH 2.0 QUARTERLY REPORT :: Q4 2016
The lion’s share is still in North America, with 74% of digital health
companies located there. However, a strong contingent belongs to
Europe with 17.5%, and emerging companies in Asia and the Middle
East account for international growth.
AS THE HEALTH 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 distribution of companies
Health 2.0 Around the World
.1%
1.1%
.8%
1.4%
5.1%
17.5%
74%

5. HEALTH 2.0 QUARTERLY REPORT :: Q4 2016
FUNDING FOR THE HEALTH 2.0 space in 2016
has surpassed every year for which we keep
data. Approximately $1.12B was invested from
October through December.
Funding Keeps Flowing
We predicted that funding would reach $5.5B
this year, and indeed it has – shattering funding
records for the digital health space.
Entrepreneurs and investors, enticed by the
opportunity to transform a giant industry,
continue to flock to healthcare. We will see
whether 2017 bucks the trend or sets another
record.
HEALTH 2.0 ANNUAL FUNDING
2011
1.0 B 1.6 B 2.2 B
4.6 B 4.8B
2012
5.6 B
2016
2013
2014
2015

6. HEALTH 2.0 QUARTERLY REPORT :: Q4 2016
2.4B
CONSUMER FACING
884M
DATA, ANALYTICS,
& EXCHANGE
453M
PATIENT PROVIDER
COMMS
602M
PROFESSIONAL
FACING
THE CONSUMER FACING category led in funding all year,
with Data and Analytics contributing significant raises as
well. Prominent deals for new venture Iora ($75M) and
Crossover Health ($92M) contribute to 2016’s record funding
totals.
Consumer Facing Funding STILL On Top
Two of the biggest deals this quarter:
*75M
2016 FUNDING BY CATEGORY AND QUARTER
Q2: 100M
Q1: 127M
Q1: 312M
Q2: 248M
Q1: 120M
Q2: 105M
Q1: 1.14B
Q2: 1.3B
Q3: 128M
Q3: 226M
Q3: 140M
Q3: 793M
Q4: 88M
*Q4: 246M
Q4: 98M
*Q4: 597M
*92M

7. HEALTH 2.0 QUARTERLY REPORT :: Q4 2016
Hot Stuff: Top Funding Deals in Q4, 2016
CONSUMER FACING PROFESSIONAL
FACING
PATIENT PROVIDER
COMMUNICATION
DATA, ANALYTICS,
& EXCHANGE
TOP FUNDING DEALS OF Q4 2016
The winter’s raises shine a spotlight on primary care,
diabetes and cloud-based solutions . Iora Health ($75M), a
direct primary care practice, and Patient Ping ($32M), a care
coordination firm, are both Boston-based ventures in
primary care. Q4’s biggest raise belongs to Crossover Health,
which provides analytics-informed primary care to self-
insured employers. Intuity Medical ($40M) offers an all-in-
one glucose testing kit for diabetics, and Bigfoot Biomedical
raised $36M for a smart insulin delivery system for diabetic
patients. Denver-based health management firm Welltok
raised $34M to build out its CafeWell offering, while
payments platform InstaMed signed $50M. Tracelink ($52M)
offers an interesting cloud solution to eliminate counterfeit
drugs from the prescription pharmaceutical industry.
90M
80M
70M
60M
50M
40M
30M
THE TOP DEALS of Q4 2016 totaled to
$426M and represent nearly 43% of total
funding this quarter.

8. HEALTH 2.0 QUARTERLY REPORT :: Q4 2016
0 2 4 6 8 10 12 14 16 18
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, patient-provider
communication and security products in the last 12 months. 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, DECEMBER 2016

9. HEALTH 2.0 QUARTERLY REPORT :: Q4 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 :: Q4 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 :: Q3 2016