Contenu connexe Similaire à StartUp Health Insights 2016 Q3 Report (18) StartUp Health Insights 2016 Q3 Report1. © 2016 StartUp Health, LLC
Published: April 1, 2015
StartUp Health Insights
Digital Health Funding Rankings
Q3 2016
TM
A StartUp Health InsightsTM Report
Published October 3, 2016 | Report data through September 30, 2016
Report is inclusive of seed, venture, corporate venture and private equity funding
Sign up to receive weekly funding insights at startuphealth.com
INCLUDING CAREGIVING MARKET FUNDING SPONSORED BY
2. 2016 is on track to be the biggest year yet for digital health funding. Q3 was significant with almost $2.4B in deals, nearly
half of which were international. We continue to see the market expand globally, with several large deals taking place both
in the US and overseas.
2016 Q3 Summary
1
2016 Grows in US and Globally: Digital health funding continues to grow in 2016, with an increase this year
internationally. Early stage deals remain active with new investments flowing into Seed and Series A companies. Several
late-stage deals have also been record-breaking, with two $500M rounds.
2
Digital Health's First Wave: The digital health sector is very much in its first wave of innovation, with much of the activity
still at the earliest stages and too few success stories. With several significant deals this quarter(and year), both in the US
and globally, expect to see more breakouts as the market matures and we enter a second wave of health innovation.
3
An Active Investor Ecosystem: Over 500 unique investors poured capital into digital health so far this year. And 140+
investors put money into multiple deals in 2016, a sign of a diverse investor ecosystem.
4
Unique Collaborations: A $500M investment by Google and Sanofi has broken ground on a very interesting relationship
meant to tackle one of the world's greatest challenges: diabetes. This collaboration comes with very specialized expertise
from both parties. Expect more unique collaborations as companies come together to focus on solving big health challenges
ranging from Alzheimers and cancer to healthy aging and brain health.
5
The Rise of the Rest: While the Coasts continue to attract the majority of capital in digital health, we are seeing deal
counts pick up this quarter in places like Minnesota, Tennessee and Florida. New ecosystems are slowly growing and
investors are increasingly supporting startups from places that previously have been overlooked.
DEALS & FUNDING INVESTORS
2
CAREGIVING
Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC
3. Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC 3
150
283
467
629
574
523
394
Digital Health Funding Snapshot Year Over Year (2016 YTD)
Funding($B)
$2
$4
$6
$8
2010 2011 2012 2013 2014 2015 2016 (YTD)
Q1 Q2 Q3 Q4
Digital health funding in Q3 2016 surpassed all previous third quarters. Q3 of 2016 has surpassed total funding for 2010
and 2011 and is on par with total funding of 2012. We are on track for the strongest year yet, with funding to date already
passing 2015’s total of $6.1B.
Deal Count
DEALS & FUNDING INVESTORS
$1.91B
Q3
$2.37B
$1.90B
$811M
$619M
$687M
$270M
CAREGIVING
$ 6.5B (YTD)
$6.1B
$7.1B
$2.9B
$2.4B
$1.9B
$1.1B
4. Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC 4
Digital Health Funding Snapshot Month Over Month
DEALS & FUNDING
$0
$250,000,000
$500,000,000
$750,000,000
$1,000,000,000
$1,250,000,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2013 2014 2015 2016 YTD
INVESTORS CAREGIVING
$1.25B
$1.00B
$0.75B
$0.50B
$0.25B
This chart compares yearly funding on a monthly basis and reveals cyclical funding patterns. Total investment tends to
spike in May and September, which may be helpful in guiding entrepreneurs’ fundraising planning. Five out of nine months
this year have record-setting funding numbers.
5. Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC 5
$0
$250,000,000
$500,000,000
$750,000,000
$1,000,000,000
$1,250,000,000
2010 2011 2012 2013 2014 2015 2016
R² = 0.6614
Digital Health Funding Snapshot Month Over Month
Despite fluctuations month over month, our data has shown a steady increase in Digital Health funding. Q3 has also
provided some of the largest deals to date (such as Ping An Good Doctor and Onduo); even the smallest deals from Q3
rival the largest deals from previous years.
DEALS & FUNDING
$320M Series B
$150M Series C
$37.5M Venture
$37.9M Venture
$101M Series B
$394M Venture
$33M Series B
$31M Series A
$400M Series C
$230M Series B
$500M Series C
R2 = 0.5564
$1.25B
$1.00B
$0.75B
$0.50B
$0.25B
$400M Venture
2016YTD
INVESTORS CAREGIVING
$448M Venture
$500M Venture
$500M Series A
Ping An
Good Doctor
6. Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC 6
Company $ Invested Subsector Notable Investor
1 $500M Patient / Consumer Experience Undisclosed
1 $500M Patient / Consumer Experience
3 $448M Patient / Consumer Experience
4 $400M Wellness
5 $220M Personalized Health
6 $175M Personalized Health
7 $160M Wellness
8 $151M Patient / Consumer Experience
9 $120M Patient / Consumer Experience
10 $100M Personalized Health
10 $100M Medical Device
Two $500M deals lead the pack — and these are two of the largest deals in digital health funding to date. These deals vary
significantly, Ping An Good Doctor is focused on bringing medical services to the greater Chinese market via mobile, while
Onduo focuses on solving one of America’s biggest chronic disease challenges.
The Top 10 Largest Deals of 2016 (YTD)
DEALS & FUNDING INVESTORS CAREGIVING
7. Subsector Total Raised YTD Deal Count Average Deal Size
1 Patient / Consumer Experience $2.53B 101 $25.1M
2 Wellness $918M 33 $27.8M
3 Personalized Health / Quantified-Self $634M 26 $24.4M
4 Big Data / Analytics $564M 40 $14.1M
5 Medical Device $478M 40 $12.0M
6 Workflow $419M 59 $7.1M
7 Clinical Decision Support $309M 20 $15.4M
8 Population Health $248M 31 $8.0M
9 E-commerce $242M 13 $18.6M
10 Research $107M 15 $7.1M
The Top 10 Most Active Subsectors of 2016 (YTD)
DEALS & FUNDING
The top-funded subsector currently shows a continued push towards patient/consumer experience, with almost triple
the total funding of the second-most active focus area. Even if you exclude the two $500M deals in patient/consumer
experience (Ping An Doctor and Onduo), it still remains the top funded market in digital health.
INVESTORS CAREGIVING
Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC 7
8. Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC 8
2010
2011
2012
2013
2014
2015
2016
0% 25% 50% 75% 100%
Seed Series A Series B Series C Series D Series E Series F + G + H
65% of all deals this year are at the Seed and Series A stage. We have seen a slight dip in seed funding as a percent of
total deals, with deal volume increasing slightly in Series A deals. Series B funding continues to remain consistent year
over year at 20% of total deals.
Deal Activity by Stage
30% 35% 9%20% 3%
Deal Count*
121
234
305
450
386
293
DEALS & FUNDING
*Deal count only includes Seed though Series G rounds
242 (YTD)
INVESTORS CAREGIVING
9. Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC 9
Market Maturity Map
47%
45%
Patient / consumer experience and workflow companies are the highest in deal count among early-stage rounds, while the highest
concentration of post-Series D deals are occurring in the personalized health/quantified-self market. Education/training and
research continue to be nascent markets.
Patient / Consumer
Experience
Wellness
Personalized Health /
Quantified-Self
Big Data /
Analytics
Medical Devices
Clinical Decision
Support
E-Commerce
17 23 12 4 3
14 12 9 4 1
8 12 7 0 2
10 8 4 2 0
7 9 4 4 1
4 7 3 2 6
1 3 4 3 0
6 3 0 0 0
3 4 2 2 3
0 3 1 0 1
2 0 0 0 0
0 1 1 1 0
Workflow
Research
Population Health
EHR
Education /
Training
Seed Series A Series B Series C Series D-H
CAREGIVINGDEALS & FUNDING INVESTORS
10. Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC 10
2016 has shown a variety in deal sizes and stages. The median deal size for late stage deals is approximately twice the size
of mid-stage deals. Interestingly, this year we have seen several early- and mid-stage deals larger than late-stage deals.
Deal Size Ranges & Medians by Stage for 2016 (YTD)
DEALS & FUNDING
$0
$11M $151M
$500K $220M
$52K $145M
$300M
Late-stage (Series D+)Mid-stage (Series B + Series C)Early-stage (Seed + Series A)
Excludes Early-stage outliers: $400M Oscar, $500M Good Doctor
$15M
$3.0M
$28M
INVESTORS CAREGIVING
11. The Most Active US Metro Areas of 2016 (YTD)
DEALS & FUNDING
Region
1 SF Bay Area
2 New York City
3 Boston
4 Minneapolis
5 Philadelphia
6 Chicago
7 Los Angeles
8 Washington, DC
9 San Diego
10 Dallas
$54M
$868M
$704M
$70M
$1.2B
San Francisco
Bay Area
Dallas Metro
San Diego Metro
New York City
Metro
Boston Metro
$179M
Chicago Metro
$200M
Minneapolis /
St. Paul Metro
$189M
Philadelphia
Metro
(7 Deals)
(7 Deals)
(79 Deals)
(13 Deals)
(10 Deals)
(15 Deals)
(46 Deals)
(17 Deals)
Los Angeles
Metro
$103M
(15 Deals)
Washington, DC Metro
$91M
(8 Deals)
INVESTORS CAREGIVING
Deal flow and funding continue to be significant in the San Francisco Bay Area and in the Northeast. These regions have
yielded 142 deals (36% of all deals) and approximately $2.7B in funding year-to-date (42% of all funding).
Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC 11
12. Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC 12
The Top Venture Investors of 2016 (YTD)
DEALS & FUNDING INVESTORS
Firm 2016 YTD Deals 2015 Deals Stage
Early Mid Late
1 10 9
1 10 2
3 9 10
4 6 3
5 5 6
5 5 -
5 5 4
5 5 1
5 5 6
This year, StartUp Health has joined regulars GE Ventures and Khosla Ventures as one of the most active venture investors
in digital health. We have also seen new players such as Index Ventures investing in the sector.
CAREGIVING
13. Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC 13
Investor Volume of 2016 (YTD)
DEALS & FUNDING INVESTORS CAREGIVING
0
50
100
150
200
2016
52
90
523
1 2 3+
InvestorCount
# of Deals by Investor
The appetite for investing in digital health continues to grow. So far, more than 500 unique investors have deployed capital
in the sector year to date and we expect that number to continue to increase.
14. Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC 14
DEALS & FUNDING INVESTORS CAREGIVING
A Spotlight on Caregiving
sponsored by
Data sourced and
provided by:
* Data in following section is separate from StartUp Health Insights data
*
15. Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC 15
DEALS & FUNDING
The Caregiving Investment Landscape
INVESTORS CAREGIVING
By 2020, 117 million Americans are expected to need assistance of some kind, yet the overall number of unpaid caregivers is only
expected to reach 45 million. Technology holds great promise for helping to reduce the complexities, stress, and sheer hard work of
these caregivers. Companies from established multinationals to startups, mass-market firms to niche players, are recognizing this
caregiving market opportunity that’s expected to reach $72 billion in 2020 alone.
16. Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC 16
Caregiving Market Investments
47%
45%
26%
DEALS & FUNDING INVESTORS
Category Raised YTD Deal Count Average Deal Size Notable Deal
1 Daily Essential Activities* $1.4B 25 $62.4M
2 Care Coordination* $234M 10 $23.4M
3 Health & Safety Awareness* $84M 11 $7.7M
4 Caregiver Quality of Life* $64M 7 $9.2M
5 Transition Support* $15M 6 $1.3M
6 Social Wellbeing $6.5M 2 $3.3M
There is a focus on funding technologies that make daily essential activities easier, including transportation, food delivery
and other services that provide value to everyday tasks and errands. Uber continues to dominate the ‘on-demand’
transportation market, viewing the aging population as a growth opportunity. Care Coordination remains an established
sector as technology begins to play a bigger role in the caregiving market.
CAREGIVING
* Includes company funding in multiple categories
17. Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC 17
Caregiving Market Top Deals
47%
45%
26%
DEALS & FUNDING INVESTORS
Notable Deal Total Raised YTD Notable Investor Category
1 $1.0B Daily Essential Activities
2 $189M Daily Essential Activities
3 $60M Care Coordination
4 $50M Care Coordination
5 $50M Care Coordination
6 $31M Health & Safety Awareness
7 $31M Care Coordination
7 $21M Daily Essential Activities
7 $21M Daily Essential Activities
7 $20M Daily Essential Activities
While not counted in StartUp Health’s data as a digital health deal, Uber’s $1B deal and several other top deals this year
could have a significant healthcare impact on the aging community. There is a healthy mix of hedge funds, venture firms
and other investors interested in supporting the caregiving market.
CAREGIVING
18. Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC 18
Caregiving Market Maturity Map
47%
45%
There is a lot of early-mid stage activity in Daily Essential activities, while Care Coordination shows more mid-late activity.
Transition Support and Social Wellbeing, however, have little activity - even in the earliest stages.
DEALS & FUNDING INVESTORS
4 6 6 2 1
1 3 3 1 1
1 1 5 2 0
2 1 3 0 0
2 2 1 0 0
1 0 1 0 0
Seed/Angel Series A Series B Series C Series D
CAREGIVING
Care
Coordination*
Caregiver
Quality of Life
Daily Essential
Activities*
Health & Safety
Awareness*
Social
Wellbeing*
Transition
Support*
* Includes company funding in multiple categories
19. Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC 19
Four investor groups closed more than one deal in 2016 specifically within the caregiving market. Among these groups, only
early and mid-stage deals took place.
Caregiving Market Venture Investors of 2016 YTD
Firm 2016 YTD Deals Notable Deal Stage
Early Mid Late
1 2
1 2
1 2
1 2
DEALS & FUNDING INVESTORS CAREGIVING
20. Sectors:
• We have a broad view of digital health and believe that the current trend is a cross-pollination of technology and data with all aspects of health and healthcare. StartUp
Health Insights
TM
tracks companies that enable health, wellness and the delivery of care through data / analytics, sensors, mobile, internet-of-things, 3D printing and
genomics and personalized medicine.
• StartUp Health tracks companies based on their sectors, subsectors and specialties. Investments in subsectors and specialties are not mutually exclusive, as deals are
tagged with multiple subsectors and specialties based on the company’s focus.
• Q2 of 2015 brought with it an extensive database quality assessment. A new system was implemented allowing StartUp Health to track innovation with enhanced
granularity. Additionally, gaps in funding data were researched and added into our database enabling us to identify fundings previously unaccounted for in previous
reports.
Stage of Funding:
• StartUp Health Insights
TM
records only publicly available data on cash for equity investments as the cash is actually received by the company. StartUp Health Insights
TM
is inclusive of seed, venture, corporate venture and private equity funding.
• Early stage: The company has raised a Seed or Series A round
• Mid stage: The company has raised a Series B or Series C round
• Late stage: The company has raised a Series D or other growth equity round
• StartUp Health also tracks incubator rounds and other financings into privately-held entities (e.g. “unnamed” venture rounds, strategic investments, growth equity and
private equity).
• In tabulating deal activity by stage we excluded rounds not clearly associated with a specific stage.
Sources:
• Funding data is from StartUp Health Insights
TM
, the most comprehensive funding database for digital health, and managed by the StartUp Health team. Information,
data and figures represent only publicly available data.
• Data for acquisitions slide was provided by a range of sources including StartUp Health Insights
TM
, CrunchBase, AngelList and news reports.
• StartUp Health works to ensure that the information contained in the StartUp Health Insights
TM
Report has been obtained from reliable sources. However, StartUp
Health cannot warrant the ultimate validity of the data obtained in this manner. All data is subject to verification with the venture capital firms and/or the investee
companies. Results are updated periodically. Therefore, all data is subject to change at any time.
• Funding data for the Caregiving section was provided by CB Insights and AARP. This data is separate from StartUp Health’s Insight funding.
• If you find an error please let us know so we can correct it.
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.
Our Methodologies
Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC 20
21. In 2011, StartUp Health introduced a new model for transforming health by organizing and supporting a global army of
entrepreneurs called Health Transformers. StartUp Health is investing in 10 health moonshots with the long-term goal of
improving the health and wellbeing of everyone in the world. With the world’s largest digital health portfolio (more than 165
companies spanning 5 continents, 16 countries and 60+ cities), StartUp Health’s long-term platform for entrepreneurs includes
the StartUp Health Academy, StartUp Health Network, StartUp Health Media and StartUp Health Ventures. StartUp Health was
founded by Steven Krein and Unity Stoakes and is chaired by former Time Warner CEO, Jerry Levin. StartUp Health’s notable
strategic partners and investors include AARP, Aurora Health Care, California Health Care Foundation, Children’s Hospital
Colorado, University of Colorado, UCHealth, Steve Case, Mark Cuban, Esther Dyson, Brad Feld, Genentech, GE Ventures,
Johnson & Johnson, Kaiser Permanente Ventures, Robert Wood Johnson Foundation and SeventySix Capital.
Learn more at www.startuphealth.com and follow @startuphealth. For press inquiries, email press@startuphealth.com
StartUp Health InsightsTM
Contributors : Troy Bannister, Mark Liber, Anne Dordai, Polina Hanin, Jennifer Hankin,
Nicole Kinsey, Tara Salamone
About StartUp Health
Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC 21
22. Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC 22
StartUp Health Companies
23. © 2016 StartUp Health, LLC
Published: April 1, 2015
StartUp Health Insights
Digital Health Funding Rankings
Q3 2016
TM
A StartUp Health InsightsTM Report
Published October 3, 2016 | Report data through September 30, 2016
Report is inclusive of seed, venture, corporate venture and private equity funding
Sign up to receive weekly funding insights at startuphealth.com
INCLUDING CAREGIVING MARKET FUNDING SPONSORED BY