At the 2017 NOAH Conference in Berlin, Min-Sung Sean Kim provided attendees with an insight into the trends and opportunities driving forward the digital transformation of healthcare.

1. VENTURE CAPITAL
IN
DIGITAL HEALTH
2017
MIN-SUNG SEAN KIM
ALLIANZ VENTURES

2. DIGITAL HEALTH
TELEMEDICINE
ANALYTICS AND DATA
DIGITAL MEDICAL DEVICES
WEARABLES AND BIO-SENSING
GENOMICS AND SEQUENCING
POPULATION HEALTH MANAGEMENT

3. The digital
healthcare
market will
almost
double in
size over the
next three
years.
23,8
59,7
103,2
20
24,8
29,1
6,4
24,2
55,9
0,4
4,5
6,3
10,1
22,6
38,9
0
50
100
150
200
250
2013 2017F 2020F
USDBILLION
WIRELESS HEALTH EHR/EMR MOBILE HEALTH TELEHEALTH OTHER
MARKET VOLUME OF DIGITAL HEALTH SEGMENTS (USD BILLION)
60.8
135.9
233.3
CAGR 23%
CAGR 6%
CAGR 36%
CAGR 46%
21%
CAGR 21%
Source: Arthur D. Little – Succeeding with Digital Health (2016)

4. 1 $914mil Big Data/Analytics
2 $500mil Patient/Consumer Experience
3 $500mil Patient/Consumer Experience
4 $488mil Patient/Consumer Experience
5 $400mil Wellness
LARGEST DEALS OF THE PAST 15 MONTHS
$1,9B
$2,4B
$2,9B
$7,1B
$5,9B
$8,1B
298
498
670
590
527
599
2011 2012 2013 2014 2015 2016
Deal Volume Deal Count
~3x
increase
since 2013
Despite some volatility, the
market for Digital Health
funding is increasingly dynamic.
VENTURE INVESTMENT IN
DIGITAL HEALTH STARTUPS
Source: StartUp Health Insight Report (2016 & Q1 2017)

5. DATA
ANALYSIS
DATA
ACCUMULATION
THERAPEUTICS
DATA
SHARING
GENOMICS
TELEMEDICINE
BETTER OUTCOMES WHILE
REDUCING COSTS
DIGITAL
MEDICAL
DEVICES
WEARABLES
The ultimate
goal of digital
health
applications is
to improve
outcomes and
reduce costs
for patients
and providers

6. 100 YEARS AGO 25 YEARS AGO TODAY
Human touch Machine assisted
Analog
Technology enabled
Digital
THE DIGITAL INFLECTION POINT
YEARS UNTIL ADOPTED BY 25% OF US POPULATION.

7. 48%YEAR-ON-YEAR INCREASE IN HEALTHCARE DATA
YEARS TO DOUBLE MEDICAL KNOWLEDGE
1950
50 YEARS
1980
7 YEARS
2010
3.5 YEARS
2020
?
Source: KPCB Internet Trends 2017; IDC & EMC (2012,2013); National Institutes of Health, U.S. National Library of Medicine (4/17), “ Challenges and Opportunities Facing Medical Education”

8. 39%
39%
50%
54%
56%
60%
0% 50% 100%
WITH WHICH TECH COMPANY WOULD YOU SHARE YOUR HEALTH DATA?
Consumers are demonstrating an increasing appetite for data sharing.
60% would share health data with Google.
Source: KPCB Internet Trends 2017; Rock Health 2016 Consumer Survey

9. PROBABILITY OF SUCCESS OF FULL CLINICAL TRIAL
WITH AND WITHOUT BIOMARKERS
(PHASE 1 TO APPROVAL)
8%
WITHOUT
BIOMARKERS
26%
WITH
BIOMARKERS
With more data, clinical trials will be revolutionized in both
duration and efficiency.
TRADITIONAL
CLINICAL TRIAL
* UK DEP. OF HEALTH
ARCHIMEDES DATA
SIMULATION
NUMBER OF
PATIENTS
2,838 50,000
YEARS OF
DATA
7 YEARS 30 YEARS
LENGTH OF
STUDY
7 YEARS 2 MONTHS
Source: KPCB Internet Trends 2017; Arthur D. Little – Succeeding in Healthcare (2016); National Academy of Engineering (David Eddy, 2015)
PHARMA
INNOVATION
APPROACH
DIGITAL
INNOVATION
APPROACH
PHASE I PHASE II PHASE III REGISTRATION
6-7 YEARS 1.5-2 YEARS
“ITERATE TO INNOVATE”
PRODUCT
DEVELOPMENT
BETA
PHASE
1-2 YEARS

10. COST AS
PREDICTED BY
MOORE’S LAW
20152005 2010
$100MIL
$10MIL
$1MIL
$100K
$10K
$1K
2000
In the past 15
years, the cost
of genome
sequencing
has reduced
drastically,
leading to an
explosion in
knowledge.
COST TO SEQUENCE (PER GENOME)
COST TODAY:
~$1000
Source: KPCB Internet Trends 2017; National Institute of Health, National Human Genome Research Institute (7/17)

11. KNOWING THE PATIENT
REDEFINING RISK
PERSONALIZING TREATMENT
Breaking the individual out of the data set
Source: KPCB Internet Trends 2017; Personalized Medicine Coalition (2017)

12. 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020
50
40
30
20
10
ELECTRICITY (46 YEARS)
1873
TELEPHONE (35 YEARS)
1876
RADIO (31 YEARS)
1897
TELEVISION (26 YEARS)
1926
PC (16 YEARS)
1975
MOBILE PHONE (13 YEARS)
1983
INTERNET (7 YEARS)
1991 SOCIAL MEDIA (5 YEARS)
2003
TECHNOLOGY ADOPTION
YEARS UNTIL ADOPTED BY 25% OF US POPULATION.
Source: Pew Research Center (1/17)

13. Min-Sung conducts global digital health investments for Allianz
Ventures, the Venture Capital unit of Allianz Group, that reaches 75m
customers in 80 countries worldwide. Prior to Allianz Ventures he was
Partner of a Berlin-based venture capital fund that specialized in
Digital Health Series A investments.
Having been an entrepreneur before, he understands the challenges
and difficulties of building up a company. With his blog,
www.DigitalHealthVC.com, he hopes to serve as a helpful resource for
digital health tech startups in the region. Min-Sung is also a
contributing writer for mediums including TechCrunch and Tech.EU.
He has invested in startups including Neuronation, Mimi, and most
notably mySugr – which was recently acquired by Roche.
Min-Sung studied Business Economics at Witten/Herdecke, Harvard,
St.Gallen, and in Seoul.
MIN-SUNG SEAN KIM
VENTURE CAPITALIST – ALLIANZ VENTURES, DIGITAL HEALTH
NOTES ON THE SPEAKER