KPN Ventures is excited to present to you our research on the European Digital Health market. Over the past years we have seen an increasing activity in investments and amounts in the Digital Healthcare market. The U.S. seems to be an early adopter, followed by Europe. We forecast that globally the investments and amounts will be again higher in 2018 compared to the years before. However, based on the market activity shown in the first half of 2018, we forecast that Europe’s investment activity will decline in 2018 compared to 2017. Most Digital Healthcare investments take place in France, UK, Sweden and Germany, followed by Spain and the Netherlands. Although we have seen some large deals taken place over the past years in Europe, e.g. Pharmacy2U € 48M (UK), Doctolib € 64M (France), Babylon € 54M (UK), Ada € 40M (Germany), unfortunately no Dutch digital health scale-ups have been able to raise such large funding amounts. In the report we have also shown the most active investors in European companies and also the most active acquirers of European companies. Feel free to download and or share the presentation. If you have comments or suggestions to improve our next report, please reach out to me.

1. European Digital Health Investment Landscape
a KPN Ventures Research Series Report – July 2018
Olivier Magnin - Investment Associate
Bram Sprangers – Junior Analyst

2. 2
General overview: Global Digital Health investments are exploding
Investment amounts have been skyrocketing, whereas the number of rounds begin to stagnate
2018 is on track to surpass last year’s total amount of funding
Source: Dealroom.co data (global investments within segment Health, excluding biotech, biomedical, med-tech and nanotech)
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2012 2013 2014 2015 2016 2017 2018 H1
Numberofrounds
Millions
Global VC investments in Digital Health
Investment amounts (in € millions) Nr. of rounds Prognosis 2018 H2

3. 3 Source: Dealroom.co data; undisclosed amount data is not available, for this reason it’s left out on the graph on the left
Definition of stages: Seed: €0-1M, Venture: €1-5M, Growth: €5-25M, Later: > €25
The European Digital Health market investment developments
It seems that in 2018 the European investments & amounts fall behind compared to the
Global Digital Health investment trend (previous slide)
2012 2013 2014 2015 2016 2017 2018 H1
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Number of investments per stage
Undisclosed Seed Venture Growth Later
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2012 2013 2014 2015 2016 2017 2018 H1
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Investment amount per stage
Seed Venture Growth Later Prognosis 2018 H2 Prognosis 2018 H2

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Disclosed amounts in € millions
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Deal count
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European Digital Health investments per investor type
Corporate VC participation is relatively limited
Source: Dealroom.co data
Other includes: accelerators, advisors, angels, angels funds, crowdfunding and family offices
4

5. 5
In total 15 clusters are identified in
the European Digital health
ecosystem
Among a diverse set of areas, the
largest five clusters in terms of
number of companies are:
Wearables (10%)
eHealth information platforms (10%)
Health management software (8%)
Mobile apps (7%)
eHealth services (7%)
Telemedicine (7%)
Online consultation / appointments (7%)
Professional diagnosis tools (6%)
Digital therapy / Rehabitation (6%)Monitoring / Sensoring (4%)
Virtual doctor / VR therapy (5%)
Telecare (4%)
Cloud-based platforms (4%)
Digital fitness (5%)
Artifical Intelligence (5%)
Source: input provided by Deloitte. The analysis is based on Quid and Pitchbook data per 09-05-2018
The total accumulates to 95%, 5% other clusters is excluded
Clustering the European Digital Health market
Wearables, Information platforms & Health management software are the largest clusters
Wearables (10%)
eHealth information platforms (10%)
Health management software (8%)
Mobile Apps (7%)
eHealth services (7%)

6. Health management software cluster
already evolved before 2008, together
with Telecare
Professional diagnosis tools companies
rapidly emerge
Wearables companies surge and online
consultation / appointments companies
appear
Artificial intelligence companies and
Mobile apps show strong growth
● Wearables
● eHealth information platforms
● Health management software
● eHealth services
● Mobile apps
● Online consultation / appointments
● Telemedicine
● Digital therapy / Rehabilitation
● Professional diagnosis tools
● Digital fitness
● Monitoring / Sensoring
● Virtual doctor / VR therapy
● Artificial intelligence
● Cloud-based platforms
● Telecare
≤ 2008
119 companies
≤ 2011
187 companies
≤ 2014
369 companies
≤ 2017
471 companies
Est.
Total
Cluster evolvement of the European Digital Health market
AI and Mobile apps show strong growth in 2017
6 Source: input provided by Deloitte. The analysis is based on Quid and Pitchbook data per 09-05-2018

7. 7 Source: Dealroom.co data
France tops the list with 44 deals.
Paris (18), Stockholm (17), London (16) and Berlin (16) are the largest hubs
Key digital healthcare deals per country are shown on the map
Paris
London
Berlin
Stockholm
Heatmap of the European Digital Health investments in 2017
40+
30+
20+
10+
<10
Numberofdeals

8. Top European Digital Health accelerators
England
8 Source: Allianz XL: https://www.linkedin.com/pulse/startups-guide-23-digital-health-accelerators-europe-published-kim
Italy
Germany
Finland
Spain
Sweden
Ireland
The Netherlands
North-Western Europe accommodates most Digital Health accelerators

9. 9 Source: Dealroom.co data
Largest investments in European Digital Health companies
Deal sizes in the first half of 2018 do not (yet) match the large rounds of 2017
2018 H1 Online pharmacy
Wearables
Health insurance
Monitoring / artificial intelligence
Online consultation / appointments
2017 eHealth information platforms
Online consultation / appointments
Mobile apps / artificial intelligence
Mobile apps / artificial intelligence
Health insurance
2016 Online optical store
Mobile apps / artificial intelligence
Online pharmacy
Online consultation / appointments
Online consultation / appointments
2015 Online optical store
eHealth services
Online consultation / appointments
Clinical trials matching
Online consultation / appointments
€ 0 € 50 € 100 MMM

10. 10
Most active European Digital Health investors in 2017
Rank Country Segments includeInvestors
Source: Dealroom.co data
Investments
2.
Virtual doctor / VR Therapy
Monitoring / Sensoring
eHealth information platforms
Professional diagnosis tools
3.
eHealth information platforms
Professional diagnostics tools
Health management software
Mobile apps
4. Health management software
eHealth information platforms
Telemedicine
Health insurance
4.
Health management software
eHealth information platforms
Artificial intelligence
Online consultation / appointments
1.
Online Consultation / Appointments
Monitoring / Sensoring
Telemedicine
Health management software

11. 11
Largest (disclosed) Digital Health exits in Europe in 2016 – 2018 H1
Source: Dealroom.co data
Online pharmacy 2017 IPO 184
Consumer Health devices 2016 Acquisition 170
Online optical store 2016 Acquisition 140
Medical device connectivity 2017 Acquisition 96
74Diabetes self-management app 2017
Company DescriptionCountry Year Exit type Amount (€M)
Acquisition

12. 12
Most active acquirers of European Digital Health companies
Timeframe: 2016 - 2018 H1
Source: Dealroom.co and Crunchbase data
Non-exhaustive list of ‘other acquirers’
(Mutuelle Nationale Hospitaliere)
2.
3.
Online consultation / appointments
eHealth information platforms
Online consultation / appointments
Other acquirers
1.
Health management software
Monitoring / sensoring
Health management software
Mobile apps
Professional diagnosis tools
Online consultation / appointments
Online consultation / appointments
Online consultation / appointments
2017
2018
2017
2018
2017
2017
2017
2016
2016
2016
2016

13. KPN Ventures is the venture capital investment arm of KPN,
The Netherlands’ leading telecom & ICT service provider.
We aim to create valuable partnerships with innovative European
technology companies providing access to capital, industry
expertise, professional network and customer channels.
KPN Ventures focusses on early growth-stage investments, series
A/B. Our investments typically range from 0.5 to 2.5 million euro
for minority stakes, building long-term partnerships, ultimately
aiming for external exits, not acquisitions.
Investments include: Actility, Security Matters, EclecticIq,
CardioSecur, Sensara, Viloc, Nello and Sentiance
About KPN Ventures
13
Contact
Phone: +31 10 45 78 82 3
E-mail: kpnventures@kpn.com
Website: www.kpnventures.com
with support from data partners:
Amsterdam office
Teleportboulevard 121
1043AJ Amsterdam
The Netherlands
Rotterdam office
Wilhelminakade 123
3072AP Rotterdam
The Netherlands
Dealroom data per: 18-06-2018
Pitchbook and Quid data per: 09-05-2018