Rock Health 2012 Midyear Funding Report

1. DIGITAL HEALTH FUNDING 2012MIDYEAR REVIEW A R O C K R E P O R T B Y

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, Fenwick & West, Genentech, Harvard Medical School, Mayo Clinic, Merck, Microsoft, Mohr Davidow Ventures, NEA, Nike, P&G, Qualcomm, Quest Diagnostics, Silicon Valley Bank, United Health and UCSF. For more information, visit rockhealth.com About REPORT We wanted to know more about startup funding of the digital health space. This report sources data from Capital IQ, CrunchBase, NVCA and the Rock Health funding database. Caveat: we are not professional white-paperistas, just curious advocates who like to share knowledge and further the discussion around the evolving digital health space. Produced by Halle Tecco, Rock Health Amy Puliaﬁto, Rock Health Nick Mathers, Sharp Labs Edison Zhang, NEA this

3. Source: Capital IQ

4. January February March April May June July August September October November December $5 $47 $167 $250 $305 $390 $462 $569 $626 $727 $797 $956 Only includes companies receiving $2M+ in venture funding 2011 Cumulative funding in millions

5. January February March April May June July August September October November December $55 $215 $253 $344 $569 $739 $771 $991 $5 $47 $167 $250 $305 $390 $462 $569 $626 $727 $797 $956 2012 Only includes companies receiving $2M+ in venture funding 2011 Cumulative funding in millions 73% more investments than this time last year on track for a record year in digital health funding

6. 68+ digital health companies raised $2M+ in 2012

7. B2MD 5 deals $17M B2B 40 deals $405M B2C 23 deals $250M FUNDING BY BUSINESS MODEL

8. FUNDING BY BUSINESS MODEL 2011 2012 0% 2500% 5000% 7500% 10000% B2B B2C B2MD B2B businesses are majority of funding, B2C grows slightly in 2012

9. LARGEST DEALS enables employees to compare costs and quality of healthcare services $100M T. Rowe Price, Redmile Group $50M Norwest Equity Partners health insurance comparison website $40M Insight Venture Partners $39M Sequoia, Qualcomm Life web-based software solution for home health agencies mobile, real-time data from hospital monitoring systems

10. NOTABLE SEED DEALS $1.5M HealthTechCapital $1.2M InterWest, Felicis $1M Khosla Ventures $750K Founders Fund patient-provider communication tool cross-platform mHealth apps for women mobile, at-home disease diagnosis instant audio and video consultations with doctors

11. COMMON THEMES Physician Tools Home Health Sensors Data

12. PHYSICIAN TOOLS workﬂow management tools for urgent care practices electronic health record platform HIPAA-compliant mobile messaging network for providers healthcare connectivity and integration solutions

13. wearable body monitoring products stretchable silicon for the microelectronics industry personalizes therapy by connecting it to your mobile device turns any smartphone into a clinical-quality ECG recorder ultra-compact wireless wearable sensors that automatically tracks activity data SENSORS

14. HOME HEALTH web-based software for home health agencies telemedicine solutions patient engagement solutions

15. DATA / ANALYTICS industrial-scale data analytics to solve complex care, treatment and cost challenges tailored integration services and technology solutions enables employees to compare costs and quality of healthcare services

16. 3M Aberdare Aeris Capital Alsop Louie Partners Ascension Health Ventures Ashby Point Capital Austin Ventures Avalon Ventures Ben Franklin Technology Partners BIP Opportunities Fund Blue Cross Blue Shield Venture Partners Bluﬀ Point Associates Burrill & Company C&B Capital Canaan Partners Cardinal Partners Catamount Ventures CHL Medical Partners CHV Capital City Hill Ventures Claremont Creek Ventures Comcast Ventures Competitor Group Connecticut Innovations Council Capital Draper Fisher Jurveston ePlanet Draper Triangle Ventures Early Stage Partners Easton Capital Emerald Stage 2 Ventures Felicis Ventures First Round Capital Founders Fund Foundry Group Four Rivers Group Franchise Growth Group Glengary Global Investment Greylock Hatteras Venture Partners Health Enterprise Partners Heritage Healthcare Innovation Fund Heritage Group HLM Ventures InCube Ventures Insight Venture Partners iRobot Corp Jafco Ventures Khosla Ventures Kleiner Perkins Merck Global Health Innovation Fund Milestone Venture Partners Miramar Venture Partners Mitsui & Co Motorola Solutions Venture Capital National Healthcare Services NEA New Atlantic Ventures New Enterprise Associates New Leaf Venture Partners New Science Ventures New World Venutres NJTC Venture Fund Norwest Equity Partners Oklahoma Life Sciences Fund OpenView Venture Partners Osage Ventures PJC Capital Premera Blue Cross Primus Capital Funds Qualcomm Ventures Redmile Group S3 Ventures Sandbox Industries Sequoia Capital Sigma Partners SoftTech VC Solidus Spark Capital T. Rowe Price The Running Company The Social+Capital Partnership Top Tier Capital Partners Tribeca Venture Partners True Ventures U.S. Bank National Association Venrock Vital Financial West Health Investment 92 VC ﬁrms invested in digital health in 2012

17. QUALCOMM LIFE

18. 2012 TOP STATES FOR DIGITAL HEALTH FUNDING State # Deals Total $ Invested % of Overall Funding California 18 $222M 33% Texas 7 $104M 15% Illinois 4 $86M 13% Pennsylvania 5 $47M 7% Georgia 3 $38M 6% Massachusetts 6 $37M 6%