Q3 Startup Market Trends and Insights
HEALTH TECHNOLOGY
August 2017
Health technology report outline
2
This report provides an overview of the health technology sector and is broken
down into three sections
SectorDescription
High-level sector metrics,
innovation quadrant, and
category definitions
Trends& Insights
Infographics and data points
for the health technology
sector
QuarterlyActivity
Major funding and exit
events from the previous
90 days
Venture Scanner reports are built by analysts utilizing our startup
database and research platform
Sector Description
3
4
Health technology startups are creating new businesses in 22 categories
The full Venture Scanner market report
and database tracks 1,977 companies
with $48B in funding
HEALTH
TECHNOLOGY
The graphic above shows only a sampling of companiesin each category, data cumulativeas of August 2017
Administration HealthCommunity teleHealthInsurance/Payment
PatientEngagement DoctorSearch
Genomics IoTFitness
IoTHealthcare RemoteMonitoring
z
EHR/EMR Communications
DoctorNetworks Gamification
MedicalDevices
Robotics MedicalBigData
Marketing
HealthDestination
HealthApps
PopulationHealth
5
Innovation quadrant for health technology
This quadrant shows a relative segmentationof the categories with respect to oneanother, data cumulativeas of August 2017
AverageFunding
ESTABLISHED HEAVYWEIGHTS
PIONEERS DISRUPTORS
AverageAge
Genomics
Medical Device
IoT Fitness
Insurance/Payments
Health Destination
Sites
Clinical Administration
Population Health
EHR/EMR
Healthcare Robotics
Health Apps Healthcare Search
Gamification
IoT Health
Nutrition
Remote
Monitoring
teleHealth
Medical Big Data
Patient Engagement
Doctor Network
Communications
Healthcare
Communities
Healthcare
Marketing
Health technology startups play in many different categories (1 of 3)
6Category stats cumulativeas of Augusts 2017
ClinicalAdministrationand Backend
175 Startups, $4B Total Funding
Companies that optimize management of healthcare-
related administrative tasks, such as scheduling, patient
transfers, and compliance
Doctorand HealthcareServiceSearch
143 Startups, $3.1B Total Funding
Companies that help patients find the right healthcare
solutions, such as services to search for doctors,
healthcare plans, and specialized healthcare
ElectronicHealth/Medical Records
115 Startups, $2.1B Total Funding
Companies that provide and improve the efficiency of
EHR/EMR systems to optimize the internal coordination
of patient medical data, such as charts and referrals
Genomicsand PersonalizedMedicine
103 Startups, $6.9B Total Funding
Companies that utilize human genome data for disease
prevention and treatment, such as genetic testing, cost
analytics, and personalized reports
DigitalMedicalDevicesand Diagnostics
251 Startups, $9.8B Total Funding
Companies that manufacture IT-enabled medical devices
and diagnostic tools such as surgical devices, monitoring
equipment, and detection equipment
DoctorNetworkand Resources
44 Startups, $1.2B Total Funding
Companies that connect doctors with each other to share
experiences, such as collaboration tools and medical
social networks
Gamification of Health
34 Startups, $249M Total Funding
Companies that promote behavior-changing health and
wellness, such as gamification solutions for healthy
eating and fitness
HealthcareMarketingand CampaignManagement
23 Startups, $481M Total Funding
Companies that identify and target potential customers
for healthcare services, such as healthcare specific CRM
platforms
Health technology startups play in many different categories (2 of 3)
7Category stats cumulativeas of August 2017
HealthcareMobileCommunications/Messaging
29 Startups, $511M Total Funding
Companies that create communication services for
healthcare, such as secure messaging, care transition
notifications, and shareable notes
HealthInsuranceand Payments
99 Startups, $4.2B Total Funding
Companies that manage healthcare benefits and
payments, such as insurance marketplaces and platforms
to automate payments
IoT HealthCare
235 Startups, $3.2B Total Funding
Companies that track health metrics and improve
wellbeing, such as breathing mobile games, sleep
trackers, and pain relief wearables
MobileFitness/HealthApps
138 Startups, $873M Total Funding
Companies that create health related apps, such as
keeping track of fitness activities and providing structured
fitness routines
HealthcareRobotics
14 Startups, $769M Total Funding
Companies that create robotics solutions for healthcare,
such as robotic prosthetics and robotic remote patient
treatment
IoT Fitness
163 Startups, $4.5B Total Funding
Companies that track fitness and exercise metrics, such as
healthy eating trackers, exercise tracking wristbands, and
smartphone-controlled shoes
MedicalBig Data
129 Startups, $3.3B Total Funding
Companies that provide big data analytics for medical
applications, such as solutions to link data across different
systems and predictive analytics
NutritionInnovations
93 Startups, $2B Total Funding
Companies that help consumers with healthy eating, such
as providing meal plans, nutritional information, and
nutritional food delivery
Health technology startups play in many different categories (3 of 3)
8Category stats cumulativeas of August 2017
OnlineHealthCommunities
45 Startups, $583M Total Funding
Companies that connect patient groups and medical
professionals, such as disease based social networks and
platforms for generalized medical information
PatientEngagementand Education
102 Startups, $2.2B Total Funding
Companies that inform patients about modern medical
practices, such as in-hospital multimedia and patient
relationship management services
RemoteMonitoringand FamilyCare Management
88 Startups, $1.8B Total Funding
Companies that allow families and medical professionals
to monitor those in care, such as caregiverservices and
alert systems for in-home care
OnlineHealthDestinationSites
49 Startups, $1.8B Total Funding
Companies that provide health-related information and
resources, such as symptom checklists and drug
information
PopulationHealthManagement
82 Startups, $2.1B Total Funding
Companies that analyze groups of patient data to create
actionable insights, such as population data management
and communications with the group
teleHealth
175 Startups, $1.8B Total Funding
Companies that enable remote treatment between
doctors and patients, such as video conference solutions
and text-based communications
Sector Trends & Insights
9
10
Investing into the sector is occurring across a variety of categories
The Digital Medical Devices category accounts for 17% of venturefunding and 11% of
totalcompanies in the health technology sector
Venture Investing in Health Technology
Companiesare categorized by function, and therefore can exist in multiple categories. Data cumulativethrough August 2017
-
50
100
150
200
250
300
0
1
2
3
4
5
6
7
8
9
10
CompanyCount
TotalFunding($B)
VC Funding Count
11
VC funding into health tech has grown in recent years
Overall healthtech VC fundinggrew ata CAGR of 31% from 2011-2016, and
2017 is currently at 102% of 2016 funding
Health Technology Funding Over Time
Data cumulativethrough August 2017
0
1
2
3
4
5
6
7
8
9
10
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
TotalFunding($B)
12
Health technology funding amounts are focused on early stage events
Health Technology Funding Amount By Round
SeriesA financings accounted for 36% of total 2016 health tech VC funding
Graphs shows only the funding rounds listed therein, data cumulativethrough August 2017
0
1
2
3
4
5
6
7
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
FundingAmount($B)
Late Stage Series D Series C Series B Series A Seed
13
Health technology startups founded in 2013 lead in VC funding
Startups founded in 2013 account for 16% of the sectorfunding over the last decade, and
include companies like ZhongAn, Oscar, and Zenefits
Health Technology Funding By Vintage Year
Data cumulativethrough August 2017
0
1
2
3
4
5
6
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
TotalFunding($B)
Year Founded
14
Health technology startups are a global phenomenon
Health Technology Startup Countby Country
Data cumulativethrough August 2017
14000
Companies
15
A variety of top investors are making bets into health technology
Selected Investor Activity in Health Technology
The above count represents a subset of overall investor activity, data cumulativethrough August 2017
0
10
20
30
40
50
60
70
NumberofInvestments
Number of Investments Number of Companies Backed
16
Exits within the health technology space have been dominated by acquisitions
Exit events within the health tech sector grew by 164% from 2011 to 2016,
and 2017 is currently at 62% of the 2016 total
Health Technology M&A and IPO Events By Year
Data cumulativethrough August 2017
0
10
20
30
40
50
60
70
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
NumberofExits
Public Acquired
Quarterly Notable Events
17
18
Recent health technology funding statistics
There have been 164 health tech funding events from April 2017
through June 2017
Recent Health Technology Funding Round Counts
Graph shows only the funding types listed therein
0
5
10
15
20
25
30
35
40
45
Seed Series A Series B Series C Series D Series E Late Stage
FundingEventCount
19
Recent health technology funding events
Notable Recent Health Technology Funding Events
Company FundingType Amount Date
Series A $500,000,000 May 31, 2017
Series E $360,000,000 May 11, 2017
Series E $325,000,000 May 24, 2017
Private Equity $231,000,000 May 10, 2017
Venture $200,000,000 May 3, 2017
Health tech startups raised $4.4 billion from April 2017 through June 2017
20
Recent health technology exit events
Notable Recent Health Technology Exit Events
Company Acquirer Amount Date
$1,800,000,000 May 17, 2017
$701,000,000 June 19, 2017
$440,000,000 Jun 19, 2017
$397,000,000 April 4, 2017
Unknown June 13, 2017
There have been 18 health tech exits from April 2017 through
June 2017, including 15 acquisitions and 3 IPOs
About Venture Scanner
21
Venture Scanner is the foundation of your startup research
22
Our research and data keep you ahead of the innovation curve
SaveTime and Money
Get immediate access to
years of startup research
LeverageTechnology
Realize the power of our
landscaping technology
StayCurrent
See all updates and
developments
Many international Fortune 500 companies trust Venture Scanner to
help them with their startup reporting needs
Want to learn more about ourhealth technology marketreport?
Click here or contact info@venturescanner.comto learn more

Venture Scanner Health Tech Report Q3 2017

  • 1.
    Q3 Startup MarketTrends and Insights HEALTH TECHNOLOGY August 2017
  • 2.
    Health technology reportoutline 2 This report provides an overview of the health technology sector and is broken down into three sections SectorDescription High-level sector metrics, innovation quadrant, and category definitions Trends& Insights Infographics and data points for the health technology sector QuarterlyActivity Major funding and exit events from the previous 90 days Venture Scanner reports are built by analysts utilizing our startup database and research platform
  • 3.
  • 4.
    4 Health technology startupsare creating new businesses in 22 categories The full Venture Scanner market report and database tracks 1,977 companies with $48B in funding HEALTH TECHNOLOGY The graphic above shows only a sampling of companiesin each category, data cumulativeas of August 2017 Administration HealthCommunity teleHealthInsurance/Payment PatientEngagement DoctorSearch Genomics IoTFitness IoTHealthcare RemoteMonitoring z EHR/EMR Communications DoctorNetworks Gamification MedicalDevices Robotics MedicalBigData Marketing HealthDestination HealthApps PopulationHealth
  • 5.
    5 Innovation quadrant forhealth technology This quadrant shows a relative segmentationof the categories with respect to oneanother, data cumulativeas of August 2017 AverageFunding ESTABLISHED HEAVYWEIGHTS PIONEERS DISRUPTORS AverageAge Genomics Medical Device IoT Fitness Insurance/Payments Health Destination Sites Clinical Administration Population Health EHR/EMR Healthcare Robotics Health Apps Healthcare Search Gamification IoT Health Nutrition Remote Monitoring teleHealth Medical Big Data Patient Engagement Doctor Network Communications Healthcare Communities Healthcare Marketing
  • 6.
    Health technology startupsplay in many different categories (1 of 3) 6Category stats cumulativeas of Augusts 2017 ClinicalAdministrationand Backend 175 Startups, $4B Total Funding Companies that optimize management of healthcare- related administrative tasks, such as scheduling, patient transfers, and compliance Doctorand HealthcareServiceSearch 143 Startups, $3.1B Total Funding Companies that help patients find the right healthcare solutions, such as services to search for doctors, healthcare plans, and specialized healthcare ElectronicHealth/Medical Records 115 Startups, $2.1B Total Funding Companies that provide and improve the efficiency of EHR/EMR systems to optimize the internal coordination of patient medical data, such as charts and referrals Genomicsand PersonalizedMedicine 103 Startups, $6.9B Total Funding Companies that utilize human genome data for disease prevention and treatment, such as genetic testing, cost analytics, and personalized reports DigitalMedicalDevicesand Diagnostics 251 Startups, $9.8B Total Funding Companies that manufacture IT-enabled medical devices and diagnostic tools such as surgical devices, monitoring equipment, and detection equipment DoctorNetworkand Resources 44 Startups, $1.2B Total Funding Companies that connect doctors with each other to share experiences, such as collaboration tools and medical social networks Gamification of Health 34 Startups, $249M Total Funding Companies that promote behavior-changing health and wellness, such as gamification solutions for healthy eating and fitness HealthcareMarketingand CampaignManagement 23 Startups, $481M Total Funding Companies that identify and target potential customers for healthcare services, such as healthcare specific CRM platforms
  • 7.
    Health technology startupsplay in many different categories (2 of 3) 7Category stats cumulativeas of August 2017 HealthcareMobileCommunications/Messaging 29 Startups, $511M Total Funding Companies that create communication services for healthcare, such as secure messaging, care transition notifications, and shareable notes HealthInsuranceand Payments 99 Startups, $4.2B Total Funding Companies that manage healthcare benefits and payments, such as insurance marketplaces and platforms to automate payments IoT HealthCare 235 Startups, $3.2B Total Funding Companies that track health metrics and improve wellbeing, such as breathing mobile games, sleep trackers, and pain relief wearables MobileFitness/HealthApps 138 Startups, $873M Total Funding Companies that create health related apps, such as keeping track of fitness activities and providing structured fitness routines HealthcareRobotics 14 Startups, $769M Total Funding Companies that create robotics solutions for healthcare, such as robotic prosthetics and robotic remote patient treatment IoT Fitness 163 Startups, $4.5B Total Funding Companies that track fitness and exercise metrics, such as healthy eating trackers, exercise tracking wristbands, and smartphone-controlled shoes MedicalBig Data 129 Startups, $3.3B Total Funding Companies that provide big data analytics for medical applications, such as solutions to link data across different systems and predictive analytics NutritionInnovations 93 Startups, $2B Total Funding Companies that help consumers with healthy eating, such as providing meal plans, nutritional information, and nutritional food delivery
  • 8.
    Health technology startupsplay in many different categories (3 of 3) 8Category stats cumulativeas of August 2017 OnlineHealthCommunities 45 Startups, $583M Total Funding Companies that connect patient groups and medical professionals, such as disease based social networks and platforms for generalized medical information PatientEngagementand Education 102 Startups, $2.2B Total Funding Companies that inform patients about modern medical practices, such as in-hospital multimedia and patient relationship management services RemoteMonitoringand FamilyCare Management 88 Startups, $1.8B Total Funding Companies that allow families and medical professionals to monitor those in care, such as caregiverservices and alert systems for in-home care OnlineHealthDestinationSites 49 Startups, $1.8B Total Funding Companies that provide health-related information and resources, such as symptom checklists and drug information PopulationHealthManagement 82 Startups, $2.1B Total Funding Companies that analyze groups of patient data to create actionable insights, such as population data management and communications with the group teleHealth 175 Startups, $1.8B Total Funding Companies that enable remote treatment between doctors and patients, such as video conference solutions and text-based communications
  • 9.
    Sector Trends &Insights 9
  • 10.
    10 Investing into thesector is occurring across a variety of categories The Digital Medical Devices category accounts for 17% of venturefunding and 11% of totalcompanies in the health technology sector Venture Investing in Health Technology Companiesare categorized by function, and therefore can exist in multiple categories. Data cumulativethrough August 2017 - 50 100 150 200 250 300 0 1 2 3 4 5 6 7 8 9 10 CompanyCount TotalFunding($B) VC Funding Count
  • 11.
    11 VC funding intohealth tech has grown in recent years Overall healthtech VC fundinggrew ata CAGR of 31% from 2011-2016, and 2017 is currently at 102% of 2016 funding Health Technology Funding Over Time Data cumulativethrough August 2017 0 1 2 3 4 5 6 7 8 9 10 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 TotalFunding($B)
  • 12.
    12 Health technology fundingamounts are focused on early stage events Health Technology Funding Amount By Round SeriesA financings accounted for 36% of total 2016 health tech VC funding Graphs shows only the funding rounds listed therein, data cumulativethrough August 2017 0 1 2 3 4 5 6 7 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 FundingAmount($B) Late Stage Series D Series C Series B Series A Seed
  • 13.
    13 Health technology startupsfounded in 2013 lead in VC funding Startups founded in 2013 account for 16% of the sectorfunding over the last decade, and include companies like ZhongAn, Oscar, and Zenefits Health Technology Funding By Vintage Year Data cumulativethrough August 2017 0 1 2 3 4 5 6 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 TotalFunding($B) Year Founded
  • 14.
    14 Health technology startupsare a global phenomenon Health Technology Startup Countby Country Data cumulativethrough August 2017 14000 Companies
  • 15.
    15 A variety oftop investors are making bets into health technology Selected Investor Activity in Health Technology The above count represents a subset of overall investor activity, data cumulativethrough August 2017 0 10 20 30 40 50 60 70 NumberofInvestments Number of Investments Number of Companies Backed
  • 16.
    16 Exits within thehealth technology space have been dominated by acquisitions Exit events within the health tech sector grew by 164% from 2011 to 2016, and 2017 is currently at 62% of the 2016 total Health Technology M&A and IPO Events By Year Data cumulativethrough August 2017 0 10 20 30 40 50 60 70 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 NumberofExits Public Acquired
  • 17.
  • 18.
    18 Recent health technologyfunding statistics There have been 164 health tech funding events from April 2017 through June 2017 Recent Health Technology Funding Round Counts Graph shows only the funding types listed therein 0 5 10 15 20 25 30 35 40 45 Seed Series A Series B Series C Series D Series E Late Stage FundingEventCount
  • 19.
    19 Recent health technologyfunding events Notable Recent Health Technology Funding Events Company FundingType Amount Date Series A $500,000,000 May 31, 2017 Series E $360,000,000 May 11, 2017 Series E $325,000,000 May 24, 2017 Private Equity $231,000,000 May 10, 2017 Venture $200,000,000 May 3, 2017 Health tech startups raised $4.4 billion from April 2017 through June 2017
  • 20.
    20 Recent health technologyexit events Notable Recent Health Technology Exit Events Company Acquirer Amount Date $1,800,000,000 May 17, 2017 $701,000,000 June 19, 2017 $440,000,000 Jun 19, 2017 $397,000,000 April 4, 2017 Unknown June 13, 2017 There have been 18 health tech exits from April 2017 through June 2017, including 15 acquisitions and 3 IPOs
  • 21.
  • 22.
    Venture Scanner isthe foundation of your startup research 22 Our research and data keep you ahead of the innovation curve SaveTime and Money Get immediate access to years of startup research LeverageTechnology Realize the power of our landscaping technology StayCurrent See all updates and developments Many international Fortune 500 companies trust Venture Scanner to help them with their startup reporting needs
  • 23.
    Want to learnmore about ourhealth technology marketreport? Click here or contact info@venturescanner.comto learn more