Summary of 2012 deals, companies and investors in digital health. Updated on January 8th to reflect additional funding from 2012 and a change to the largest deals of the year. Second update on January 19th with the release of full year (2012) venture capital data from PwC MoneyTree. Purchase the report here: https://gumroad.com/l/rHjx
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2012 Digital Health Funding Report by @Rock_Health
1. A R O C K R E P O R T B Y
2012A YEAR IN REVIEW
DIGITAL HEALTH FUNDING
2013 JAN
Annual funding report
2. Rock Health is powering the future of the digital health ecosystem, bringing
together the brightest minds across disciplines to build better solutions. Rock
Health funds and supports startups building the next generation of technologies
transforming healthcare.
Rock Health partners include Aberdare Ventures, Accel Partners,
Genentech, Harvard Medical School, Kaiser Permanente, Kleiner Perkins Caufield
& Byers, Mayo Clinic, Mohr Davidow Ventures, Montreux Equity Partners, NEA,
Nike, Qualcomm, Silicon Valley Bank, UnitedHealth Group, and UCSF.
For more information, visit rockhealth.com
About
REPORT
For our 2012 Year End Funding Report, we have compiled more data than ever
before so you can get a better look into digital health funding. The findings
reinforce our positive outlook and excitement for the potential of technology to
transform healthcare.
This report sources data from Capital IQ, SEC, company websites, CrunchBase,
NVCA and the Rock Health funding database.
Produced by
this
Halle Tecco
@halletecco
Malay Gandhi
@mgxtro
Edison Chang, NEA
Nick Mathers, KickLabs
Amy Puliafito, Rock Health
With help from:
4. Digital health funding has grown in the face of
declining investment in traditional healthcare
Source: PwC Money Tree (updated from previous version on 1/19/2013 to reflect full year data versus TTM through Q3 2012)
YoY change in funding (2012 versus 2011)
Digital health
Medical devices
+46%
-13%
-10% All sectors
-15% Biotechnology
Software +10%
Tech
Healthcare
6. Four common themes representing more than
1/3 of all deals emerged during 2012
Hospital
administration
Managing the business
of a hospital
$78M
Personal health tools
and tracking
Tracking individual health
with products and tools
$150M
Capturing clinical information
and surround applications
EMR / EHR
Health consumer
engagement
Helping consumers with
healthcare purchases
$237M
$108M
7. 25
50
75
More than half of the deals in 2012 were rounds
of $5M or greater
$0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 $100
Number of deals by amount raised (in millions)
Series A: $3.8M
All deals: $6.0M
Series B: $8.4M
Series C: $10.5M
Series D or higher: $19.0M
Median raise
Note: only includes companies that received $2M+ in venture funding
8. enables employees to compare costs
and quality of healthcare services
$100M
T. Rowe Price, Redmile Group
$50M
Norwest Equity Partners
health insurance comparison website
$50M
Institutional Venture Partners,
Matrix Partners, NEA and
Trinity Ventures
online marketplace for families to find
caregivers
$58M
Google Ventures, NEA
making the human genome searchable
The largest five deals of 2012 represent more
than 20% of the entire year’s funding
$45.5M
Brown Brothers Harriman
arms employees with access to expert
physicians to help make decisions
9. Deals by series (2012)
A B C D or higher
43 34 16
A strong funnel of deals has formed in the
space, potentially leading companies to IPO
Interwest Partners asked:
Who will be the next digital health company to IPO?
Top 3 companies identified by respondents
Raised $34M Series C
Raised $100M Series D
11
Note: only includes companies that received $2M+ in venture funding
Raised $75M Series C
(2011)
10. While 179 organizations invested in digital
health companies, most only did a single deal
1
2
3
4
5
6
Number of deals by each investor (2012)
0 8 34 179
investors
#ofdeals
Note: only includes companies that received $2M+ in venture funding
11. Qualcomm Ventures
Aberdare Ventures
Merck Global Health
Innovation Fund
NEA
West Health Investment
Fund
BlueCross BlueShield
Venture Partners
Council Capital
Khosla Ventures
Just eight investors made three or more digital
health investments in 2012
Note: only includes companies that received $2M+ in venture funding
12. 27
20
6
7
7
5
5
5
The hubs for digital health investment have
been established in the Bay Area and Boston
No investment
>$0-25M
>$25-100M
>$100-250M
>$250M
# of deals
Total funding by state (2012)
5
Note: only includes companies that received $2M+ in venture funding
13. $900K
Keith Rabois, angels
$1.0M
KPCB, MDV, Aberdare, Mayo,
Morado, S-Cubed, Rock Health
“Six Figures”
Dalmore Investments
connects people with mental health
providers for online counseling & psychiatry
brings trainers and clients together for
training sessions over live, two-way video
mobile platform for first responders and
the hospitals they serve
$1.3M
Undisclosed
connects parents with their children’s
doctors
Also, some notable startups have raised seed
funding during 2012
14. Funded digital health companies have
significant talent needs
10%
20%
30%
40%
50%
1-10 11-50 51-200 201-500
Distribution of digital health companies by size (employees)
Source: LinkedIn, company websites (as of December 21, 2012)
600+total positions are open
across the companies
number of employees
Other
Sales /
Acct Mgmt
Product /
Marketing
Business / Ops
Engineering
/ IT
33%
32%
13%
12%
10%
15. Women remain
underrepresented as
CEOs of digital health
companies
Bachelors
MBA
Masters
PhD
MD
JD
37%
32%
15%
8%
5%
3%
CEO educational background
CEO gender
93%
7%