StartUp Health Insights Digital Health Funding for the 50+ Market 2014 Q3 YTD sponsored by the AARP.

1. StartUp Health Insights:
Digital Health Funding for the 50+ Market
2014 Q3 YTD
© 2014 StartUp Health, LLC
Published: 11/19/2014
TM
A REPORT SPONSORED BY
A StartUp Health Insights Report

2. Q3 2014 SUMMARY
2014 is setting records for digital health funding, including many deals relevant to the 50+ market. Our quarterly
report gives an overview of the most active 50+ areas, investors and more. Here are six trends we’re watching:
Source: StartUp Health Insights | www.startuphealth.com/insights
Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC
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1 2014 Digital Health Funding Reaches Record Levels: Through Q3 2014, 347 companies have raised $5B. This
level of growth demonstrates that 2014 is on track to nearly double the amount invested in 2013.
2 Funding for Startups in the 50+ Market Continues to Grow: Through Q3 2014, 186 deals relevant to the 50+
market have raised $2.2B. Of those, 21 have raised $269M for products and services specifically targeting the 50+.
3 The 50+ Opportunity Expands: 50+ consumers account for $3.1 trillion in consumer spending and $1.6 trillion in
healthcare spending. Over the next 5 years, digital health spending by the 50+ could top $30 billion.*
4 Consumerism Grows: As a result of high-deductible plans, price transparency and new tech solutions, patients are
more empowered. Consumers’ purchasing power is noticed by large companies like Facebook, Apple and Google.
5 ACA Spurs Innovation: Health reform continues to drive changes in the industry, encourages startup activity in the
sector and pushes organizations to adopt new technology to improve quality of care for the 50+ market.
6 Global Innovation Accelerates: More than 7,500 startups around the world are developing new solutions in
digital health, with broad opportunity to create technologies that are relevant to the 50+ market.
*From AARP’s Heath Innovation Frontiers Report, August 2014

3. DIGITAL HEALTH FUNDING SNAPSHOT (YTD)
Funding in the first three quarters of the year has skyrocketed past the total invested in 2013. Although deal
volume is lower, investors are putting more money in fewer startups, indicating the market’s gradual maturation.
600
450
300
Source: StartUp Health Insights | www.startuphealth.com/insights
Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC
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Funding ($B)
$5B
$4B
$3B
$1B
Deals
150
2010 2011 2012 2013 YTD 2014
Deals Funding
$5.0B
$2.8B
$2.2B
$1.7B
$1.1B
533
447
242
142
347

4. DEFINING THE 50+ MARKET IN DIGITAL HEALTH
Medical
Aging With
Vitality
Management
Source: StartUp Health Insights | www.startuphealth.com/insights
Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC
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As the overall digital health industry continues to expand, startups serving 50+ consumers - either directly or
through providers, payors and other healthcare stakeholders - are increasingly attracting investment.
This report spotlights two categories of startups: 50+ relevant companies and 50+ focused companies.
Companies in both categories align with at least one of AARP’s 9 areas of opportunity:
The 50+ relevant category includes companies, both
B2C and B2B2C, with products or services that could be
used by 50+ consumers. This excludes practice
management solutions, compliance software, lab
support tools and other enterprise systems that do not
have a consumer touchpoint, as well as companies
specifically targeting other demographics like children
and young families.
The 50+ focused category includes B2C companies
that specifically target 50+ consumers and B2B2C
companies that provide products and services to
payors, providers and others that serve 50+
consumers.
Emergency Detection
and Response
Physical
Fitness
Diet and
Nutrition
Behavioral and
Emotional Health
Social
Engagement
Vital Sign
Monitoring
Care
Navigation

5. 50+ MARKET FUNDING SNAPSHOT (YTD)
As of Q3, 2014 funding for startups relevant to the 50+ market has already exceeded the total amount invested
last year. Consistent with the broader digital health sector, deal volume is down as investors put more money in
fewer startups.
300
225
150
253
189
101
$0.5B $0.8B $0.8B $1.3B $2.2B
Source: StartUp Health Insights | www.startuphealth.com/insights
Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC
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Funding ($B)
$2.5B
$2.0B
$1.5B
$1.0B
$0.5B
Deals
75
2010 2011 2012 2013 Q1-3 2014
Deals Funding
51
186

6. 50+ MARKET GROWTH RELATIVE TO ENTIRE DIGITAL HEALTH SECTOR
$1.1B $1.7B $2.2B $2.8B $5.0B
2010 2012
70%
55%
Digital Health Market 50+ Market
42%
40%
$0.8B $0.8B
47%
35%
Total Funding
Source: StartUp Health Insights | www.startuphealth.com/insights
Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC
45% 44%
36%
42% 42%
48%
54%
Deal Count Funding
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As consumerism for health solutions grows, capital continues to flow to the digital health sector and 50+
market alike.
$1.7B
$1.3B
2013
50+ market investments as percentage of total investments in digital health
$2.2B
2014 YTD
$0.5B
2011
2010 2011 2012 2013 2014 YTD

7. OPPORTUNITIES EMERGE FOR 50+ FOCUSED COMPANIES
While investment in the 50+ market accounts for 44% ($2.2B) of the overall YTD investment in Digital Health
($5.0B), it is estimated that 50+ focused companies comprise only 12% ($269M) of that subset. For consumers
who spend $1.6 trillion on healthcare, this represents an unmet need for innovation and opportunity for growth.
88%
Source: StartUp Health Insights | www.startuphealth.com/insights
Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC
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50+ Focused Funding
50+ Relevant Funding
($269M)
($1.9B)
12%
$5.0B

8. FUNDING FOR B2B2C COMPANIES DOMINATE IN THE 50+ MARKET
($133M)
50+ Relevant Companies (2014 YTD)
Source: StartUp Health Insights | www.startuphealth.com/insights
Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC
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Not surprisingly, investors prefer B2B2C business models, where payment risk is shifted to a third party, rather
than the patient / consumer.*
15%
($40M)
50+ Focused Companies (2014 YTD)
50+ Focused B2B2C Model Only
50+ Focused B2C Model Only
50+ Relevant B2B2C Model Only
50+ Relevant B2C Model Only
50+ Relevant B2B2C & B2C Models
*Business model classification based on publicly available information
($1.57B)
($483M)
72%
22%
6%
30% 55%
($80M) ($148M)
50+ Relevant B2B2C & B2C Models

9. THE TOP 10 LARGEST 50+ MARKET DEALS OF 2014 (YTD)
Source: StartUp Health Insights | www.startuphealth.com/insights
Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC
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The top 10 deals relevant to the 50+ market represent about 39% of all funding YTD.
Company $ Invested Area Notable Investor
1 $172M Vital Sign Monitoring Summit Partners
2 $135M Aging with Vitality Verizon
3 $105M Vital Sign Monitoring Capricorn Investment Group
4 $80M Navigating the Care System Founders Fund
5 $71M Navigating the Care System Camden Venture Partners
6 $70M Aging with Vitality Undisclosed
7 $66M Navigating the Care System Andreessen Horowitz
8 $51M Navigating the Care System Great Hill Partners
9 $50M Navigating the Care System Kleiner Perkins
10 $50M Aging with Vitality W Capital Partners

10. FUNDING FOR THE 9 50+ MARKET AREAS IN 2014 (YTD)
Care Navigation and Vital Sign Monitoring remain the top two subsectors in the 50+ market, consistent with
the trends of preventative medicine and patient empowerment.
Area $ Invested # of Deals Notable Deals
1 Care Navigation $960M 75 Essence Healthcare
2 Vital Sign Monitoring $781M 62 Proteus Digital Health
3 Aging With Vitality $735M 41 Soundhawk
4 Physical Fitness $222M 25 Noom
5 Social Engagement $211M 29 MyHealthTeams
6 Behavioral & Emotional Health $168M 22 AbilTo
7 Diet & Nutrition $162M 21 Rise
8 Medication Management $114M 17 Mango Health
9 Emergency Detection & Response $38M 08 Healthsense
Source: StartUp Health Insights | www.startuphealth.com/insights
Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC
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Note: Investments in the above subsectors are not mutually exclusive
as deals could pertain to multiple subsectors.

11. 2014 50+ MARKET DEAL ACTIVITY BY STAGE (YTD)
Consistent with the broader digital health industry, mid-stage deals are gaining momentum, showing signs of
a maturing market.
30% 38% 20% 6%
Source: StartUp Health Insights | www.startuphealth.com/insights
Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC
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2010
2011
2012
2013
2014 YTD
0% 25% 50% 75% 100%
2% 3%
Seed Series A Series B Series C Series D Series E Series F+

12. THE TOP 50+ MARKET VENTURE INVESTORS OF 2014 (YTD)
Many of Silicon Valley’s elite VCs are funding companies that address the needs of 50+ consumers, with
notable involvement from strategic investors.
Source: StartUp Health Insights | www.startuphealth.com/insights
Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC
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Investor 2014 YTD Deals Notable Deals
1 5 Oscar
2 4 Zenefits
3 4 Grand Rounds
4 4 Athos
5 4 Welltok
6 4 Voluntis
7 4 Counsyl
8 3 Sols
9 3 Chrono Therapeutics
10 3 Weave
11 3 Propeller Health

13. METHODOLOGIES
The data presented herein is from StartUp Health Insights, which was gathered from public non-grant funding information from SEC filings, company press releases, CrunchBase, AngelList,
and other news sources from January 1, 2014 through September 30, 2014. The dataset includes non-grant funding from startup incubators as well as international deals.
Some of the deals presented in sub-sector analyses may have been subject to double counting because of overlapping markets. VCs included in the top list comprised those that invested in
the most deals within the 50+ market through Q3 2014.
The 50+ market, as defined by AARP, includes companies in at least one of 9 areas of opportunity relevant to 50+ consumers: Care Navigation, Vital Sign Monitoring, Emergency Detection
& Response, Physical Fitness, Diet & Nutrition, Social Engagement, Behavioral & Emotional Support. (More detail in table below.)
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In tabulating deal activity by stage we excluded rounds not clearly associated with a specific stage and incubator rounds.
The 50+ relevant category includes all companies, both B2C and B2B2C, with products or services that could be used by 50+ consumers. This excludes practice management
solutions, compliance software, lab support tools and other enterprise systems that do not have a consumer touchpoint, as well as companies explicitly targeting other
demographics like children, young families and millennials.
The 50+ focused category includes B2C companies that explicitly target 50+ consumers and B2B2C companies that provide products and services to payors, providers and others
that serve 50+ consumers.
Market Opportunity Examples of Needs Addressed
Social Engagement Staying connected socially Keeping mobilized Stimulating intellect
Medication Management Managing multiple medications Preventing in-home accidents Sharpening memory
Emergency Detection & Response Detecting falls Sending alerts when lost Preventing in-home accidents
Behavioral and Emotional Health Stress reduction Receiving divorce/grief support Managing life phase transitions
Physical Fitness Improving muscle strength Age-appropriate exercise Maintaining healthy weight
Diet & Nutrition Eating healthy and portion control Maintaining a healthy weight Reducing bad cholesterol
Navigating the Healthcare System Managing healthcare costs Evaluating quality of care Plan for end of life care
Aging with Vitality Aiding in memory and cognition Improving or aiding vision Improving or aiding hearing
Vital Sign Monitoring Keeping blood pressure in range Detecting skin problems Improving sleep quality
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. StartUp
Health does not guarantee or warrant the reliability or completeness of the data nor its usefulness in achieving any particular purposes. StartUp Health shall not be liable for any loss, damage, cost
or expense incurred by reason of any persons use or reliance on this report. This report is a proprietary aggregation of publicly available data and shall not be forwarded or reproduced without the
written consent of StartUp Health.
Source: StartUp Health Insights | www.startuphealth.com/insights
Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC

14. ABOUT AARP & STARTUP HEALTH
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AARP’s vision is to stimulate innovation and entrepreneurship in the market place
around breakthrough products, experiences, and business models for health
technologies benefiting the 50+ market. Learn more at aarp.org and follow
@AARPInnovation.
StartUp Health is a global growth platform for entrepreneurs transforming
healthcare. StartUp Health’s long-term coaching program and trusted peer
network include 165 entrepreneurs from 84 companies in 7 countries and 47 cities.
StartUp Health's full-time team of entrepreneur coaches helps increase the equity
value of its companies by providing structured programming and access to
investors, customers and advisors for every stage of a company’s lifecycle. Learn
more at startuphealth.com and follow @startuphealth.

15. Published: 11/19/2014
StartUp Health Insights:
Digital Health Funding for the 50+ Market
2014 Q3 YTD
© 2014 StartUp Health, LLC
A REPORT SPONSORED BY
A StartUp Health Insights TM
Report
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