The Q3 2016 Health 2.0 quarterly report highlights significant funding trends and developments in the digital health sector, including a focus on female-led initiatives and solutions for underserved communities. Notable investments included a $500 million venture in diabetes management by Verily and Sanofi, alongside other substantial raises for health tech companies. The report indicates a strong growth trajectory for digital health funding, predicting a total of $5.5 billion by the end of the year.

1. HEALTH 2.0 QUARTERLY REPORT :: Q3 2016
QUARTERLYREPORTS
HEALTH 2.0 QUARTERLY REPORT :: Q3 2016
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2. HEALTH 2.0 QUARTERLY REPORT :: Q3 2016
TECH BY (AND FOR) WOMEN
Health tech led by or designed for women were in the news at both TechCrunch
Disrupt and Health 2.0. Q3 saw well known VC Lisa Suennen launch CSweetener, a
nonprofit aimed at mentoring female healthcare entrepreneurs.Montreal-based
Omsignal raised $10M for a smart bra product, and prenatal sensor start-up
Bloomlife raised $4M this quarter.
PATIENT ENGAGEMENT 2.0
Like “interoperability” before it, “patient engagement” has become the digital health
buzzword du jour. At the Health 2.0 conference and beyond, firms discussed passing
obvious and easily forgotten solutions to stickier ways of encouraging patient success.
Accolade raised $71M this quarter for its digital patient concierge service,and
ShareCare acquired BioLucid, a visual storytelling company which helps patients
understand their illnesses. Zillion ($28M) offers healthcare tutorials but also
aggregates wearable tech data into useful information to track patient goals.
UNDERSERVED COMMUNITIES
There’s increasing emphasis on digital health solutions for underserved
communities who often receive expensive or suboptimal care. Azalea Health
($11M) is building clinic and telehealth software for rural practices, and
RubiconMD raised $750K for its platform that allows subspecialists to consult
with rural doctors. Anthem announced the launch of Spanish telehealth visits for
its California members. AtHealth 2.0, RWJF launched a program to increase
diversity in the health tech community.
TYPE 2 COLLABORATIONS
Diabetes and its massive healthcare market continue to be a draw for digital
health shakers, evidenced by the massive $500M deal from Verily & Sanofi for new
diabetes venture Onduo. Glooko ($8M) merged with Diasend, combining a
patient platform with the latter’s big data powers to interpret diabetes device
data for patients. Insulet launched a tablet app for Type 1 children, and
Companion Medical received FDA approval for its smart insulin pen.
Things We Care About, Q32016

3. HEALTH 2.0 QUARTERLY REPORT :: Q3 2016
1971
CONSUMER FACING
1029
PROFESSIONAL
FACING
382
PATIENT PROVIDER
COMMUNICATION
486
DATA, ANALYTICS,
& EXCHANGE
3868
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 83 companies overall.The Consumer
Facing category added 46 companies,and the
Professional Facing category added 10 companies.
The Patient Provider Communication category
added 21 firms,while the Data,Analytics, and
Exchange category added 6.
Health 2.0 Source:Total Companies By Category
HEALTH 2.0 SOURCE COMPANIES BY CATEGORY, JUNE 2016

4. HEALTH 2.0 QUARTERLY REPORT :: Q3 2016
.1%
1.1%
.8%
1.4%
5.1%
17.6%
73.9%
The lion’s share is still in North America,with 74% of digital health
companies located there.However,a strong contingent belongsto
Europe with 17%,and emerging companies in Australia andSouth
America account for international growth.
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

5. HEALTH 2.0 QUARTERLY REPORT :: Q3 2016
2011
1.0 B 1.6 B 2.2 B
4.6 B 4.8B
2012
4.5 B
2016
2013
2014
2015
FUNDING FOR THEHEALTH 2.0 space is
already neck-and-neck with last year’s 12-
month funding total.Approximately $1.3B was
invested from July through September.
Funding KeepsFlowing
Funding for 2016 has busted predictions.
Although funding slowed slightly since Q1 of
2016 (when funding reached $1.7B), Q3 of 2016
totaled a whopping $1.29B in deals. Another
chart-topping $500M deal was included in those
figures. We predict that funding could reach
$5.5B by the end of 2016.
HEALTH 2.0 ANNUAL FUNDING

6. HEALTH 2.0 QUARTERLY REPORT :: Q3 2016
2.4B
CONSUMER FACING
786M
DATA, ANALYTICS,
& EXCHANGE
365M
PATIENT PROVIDER
COMMS
355M
PROFESSIONAL
FACING
THE CONSUMER FACING category continued to drive
venture funding,but with stronggrowth acrossthe board.
Massive deals for new venture Onduo($500M)and Accolade
($71M) contribute to 2016’s record funding totals.
Consumer Facing Funding STILL On Top
Two of the biggest deals this quarter:
*71M* 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
Q3: 128M
Q3: 226M
*Q3:
140M
ONDUO
*Q3: 793M

7. HEALTH 2.0 QUARTERLY REPORT :: Q3 2016
THE TOP DEALS of Q3 2016 totaled to
$854M and represent nearly 66% of total
funding this quarter.
Hot Stuff: Top Funding Deals in Q3, 2016
CONSUMER FACING PROFESSIONAL
FACING
PATIENT PROVIDER
COMMUNICATION
DATA, ANALYTICS,
& EXCHANGE
TOP FUNDING DEALS OF Q3 2016
Fall’s top deals shine a spotlight on chronic disease
management and senior care. Onduo ($500M), a new joint
venture from Google’s Verily and pharma giant Sanofi,
seeks to improve products for diabetes management.
Chrono Therapeutics ($47.6M) tackles addiction with a
connected nicotine patch. And Endotronix ($32M) is
pioneering an implantable connected cardiac sensor for
heart failure monitoring. Meanwhile, ClearCare ($60M) has
focused on home care facility software , betting that the
market will grow as Baby Boomers age, and Honor raised
$42M for its on-demand senior caregiving service. Other
major raises include Accolade ($71M) a digital health
personal assistant company, the virtual pharmacy PillPack
($31M), big data AI firm Cognitive Scale ($22M) and robotic
surgery start-up Cambridge Medical Solutions ($20M).
500M
75M
50M
25M
ONDUO

8. HEALTH 2.0 QUARTERLY REPORT :: Q3 2016
0 10 20 30 40 50 60 70 80 90
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, SEPTEMBER 2016

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