1.
HEALTH 2.0 QUARTERLY REPORT :: Q2 2015
QUARTERLYREPORTS
HEALTH 2.0 QUARTERLY REPORT :: Q2 2015
BROUGHT TO YOU BY:

2.
HEALTH 2.0 QUARTERLY REPORT :: Q2 2015
THE APPLE WATCH LAUNCH
In March 2015, we saw the highly anticipated debut of the Apple Watch.
Even as some sources reported that the Watch’s health capabilities were
scaled down from original plans, a rush of companies debuted Watch Apps,
including WebMD, Doximity, Medisafe, drchrono, Humetrix, and more. What
we can’t figure out is why there’s so little fuss about Microsoft and
Samsung’s sensor-heavy wristbands.
ANALYTICS ON THE MOVE
In April, IBM’s newly established Watson Health Unit acquired analytics
companies Explorys and Phytel. The following month, IBM-funded Welltok
acquired Predilytics presumably to add another layer of analytics
to Welltok’s highly personalized CafeWell platform. All in all, at least one
major player is angling for the lead in a much-hyped segment of
Health 2.0.
FHIR: IS IT REAL?
We’ve been swept up in the FHIR maelstrom. The jury is still out as to
whether or not the sexy new API standard will catalyze data exchange like
its champions describe, but the issues of interoperability and openness are
primed for center stage. A pointed ONC report on information blocking,
released in April, and Project Argonaut, which is rallying resources around
FHIR, both helped build momentum for real action here.
MONEY, MONEY, MONEY: SUCCESSFUL IPOS (FOR A CHANGE)
This quarter saw several successful IPOs, which was a nice change of pace
from other lackluster debuts. Fitbit raised $732M, the biggest consumer
electronics IPO on record, and Evolent also enjoyed a jump on opening day.
We expect Teladoc will be the next to step up to the plate and all its
competitors (American Well, MDLive, Doctor on Demand) raised significant
amounts this quarter.
Hot Fun in the Summertime: Things We Care About, Q2 2015

3.
HEALTH 2.0 QUARTERLY REPORT :: Q2 2015
1738
CONSUMER FACING
928
PROFESSIONAL
FACING
307
PATIENT PROVIDER
COMMUNICATION
393
DATA, ANALYTICS,
& EXCHANGE
3366
ALL COMPANIES
Health 2.0 tracks companies in the Health 2.0 Source
database according to one of four categories, one or more of
nineteen sub-segments, and any number of additional tags.
This categorization schema, developed in 2011, is far more
rigorous that any we’ve seen and consistently lets us
distinguish apples from oranges in a particularly bountiful
space.
HEALTH 2.0 SOURCE added nearly 100
companies this quarter, and saw the
Patient-Provider Communication category
jump by nearly 5%. The Consumer Facing
category, though still dominating in number
of companies, experienced the least growth
this quarter.
Surf’s Up: Health 2.0 Source Keeps Growing
HEALTH 2.0 SOURCE COMPANIES BY CATEGORY, JUNE. 2015

4.
HEALTH 2.0 QUARTERLY REPORT :: Q2 2015
NEW ENTRANTS continue to find their way into the Health 2.0
playing field often either with big names or big bucks. This quarter
was no different with a few flashy debuts, highlighted here.
New Kids On The Block: Baby, I Believe In You
David Ebersman, Facebook’s former CFO, launched a new
digital health business called Lyra Health. Funded by himself
and Venrock, Lyra will offer software and services designed to
identify patients that need mental health services, coordinate
initial screenings for them, and match patients with the ideal
care team and best treatments for their condition. The “online
mental health” space is crowded, but the services aspect of
Lyra may help set it apart.
Catalia Health launched with $1.25 million in funding from Khosla
Ventures to commercialize a robot called“Mabu”that provides
information and support for sufferers of chronic diseases like
diabetes, arthritis, cancer, and heart disease. Catalia is banking on
the psychology of interaction and as we’ve seen with other avatars
and robots at Health 2.0 conferences past, it may be a solid bet.

5.
HEALTH 2.0 QUARTERLY REPORT :: Q2 2015
2011
1.0 B 1.6 B 2.2 B
4.6 B
2012
2013
2014
2015
FUNDING FOR THE HEALTH 2.0 space has
slowed with mid-year totals amounting to $2.2
billion. A sizable $200M bump from Allscripts’
investment in NantHealth on the last day of the
quarter notwithstanding, that number is quite a
bit smaller than last year’s $2.9 billion Q2 sum.
Summertime and the Livin’s…Not So Easy: Funding Slows in 2015
Funding in 2015 hasn’t kept pace with 2014 but there’s no reason to panic.
Early 2014 saw some blockbuster deals (Proteus, Flatiron, Nant, Ability
Networks all closed >$100M) that drove totals up, but the number of deals in
2015 is tracking closely with 2014. This year has also seen a few successful
IPOs, which do not reflect in these sums, but are a positive sign for the
industry. Finally, it doesn’t close the gap, but we include Zenefits’monster
$500M round in our sum. It doesn’t look like a pure Health 2.0 company, but
cloud-based health benefits management is solidly within our world.
HEALTH 2.0 ANNUAL FUNDING

6.
HEALTH 2.0 QUARTERLY REPORT :: Q2 2015
1.22B
CONSUMER FACING
THE CONSUMER FACING category dominated funding in
early 2015 (thanks, Zenefits—which counts as Consumer
Facing because even though they sell to employers, the end
users are consumers) with the Professional Facing category
following behind, but note that in Q2 Patient-Provider
Communication jumped Data, Analytics, & Exchange.
Got to Give It Up: Consumer Facing Funding Back On Top
463M
PROFESSIONAL
FACING
204M
PATIENT PROVIDER
COMMUNICATION
307M
DATA, ANALYTICS,
& EXCHANGE
*Q2: 297M
Q1: 163M
Q1: 231M
Q2: 76M
Q1: 102M
Q2: 102M
Q1: 166M
*Q2: 1.05B
The two biggest deals this quarter:
*500M*200M
2015 FUNDING BY CATEGORY AND QUARTER

7.
HEALTH 2.0 QUARTERLY REPORT :: Q2 2015
THE TOP TEN DEALS of Q2 2015 account
for a total of $1.15B and represent 75% of
total funding this quarter. With each
category represented in the top 10, we’re
continuing to see innovation across the
spectrum of Health 2.0.
Hot Stuff: Top Funding Deals in Q2, 2015
CONSUMER FACING PROFESSIONAL
FACING
PATIENT PROVIDER
COMMUNICATION
DATA, ANALYTICS,
& EXCHANGE
TOP 10 FUNDING DEALS OF Q2 2015
This quarter’s top deals are a continuation of a major trend Health 2.0
identified earlier this year: the rise of the new consumer in health care.
Each Consumer Facing deal listed here serves the consumer in a
different way from home diagnostics, to consumer-centered insurance,
wellness at work, and an improved medication experience. Even DoD’s
big raise is a nod to the new ways consumers can engage with the
health care system. We expect to see more funding flow towards
consumer-centric technologies (as always), but don’t forget, analytics
had an active quarter , which may continue into Q3.
25M
50M
75M
100M
125M
150M
500 M

8.
HEALTH 2.0 QUARTERLY REPORT :: Q2 2015
0 100 200 300 400 500 600 700 800 900
B2B-Decision Support Analytics
Privacy & Identity
Data Utility Layer
B2B-Administrative Tools
B2B-Revenue Collection & Management
B2B-Clinician Workflow
Professional Knowledge Exchanges
Patient-Provider Communication
Provider Search
Coaching & Advisory Services
Personal Health Assessment & Diagnostic Testing
Clinical Trials Search & Recruitment
Gaming
Financial Management
Patient Communities
Search
Wellness
Content
Self-Management Tools & Trackers
Remember: products are not companies and companies are not
products. This quarter, the Professional Facing segments
showed the most activity, which may well be the aftermath of
Q1 2015 where the Professional Facing category led all
categories in funding. As this chart continues to catch up to the
current pace of innovation, we expect growth to slow
incrementally.
THIS GRAPH SHOWS the current break down
of products tracked in Health 2.0 Source by
segment. The lighter color at the end of each
bar represents growth in that segment during
Q2 2015.
Constructive Summer: More Products to Track
CONSUMER FACING
PROFESSIONAL FACING
PATIENT PROVIDER
COMMUNICATION
DATA, ANALYTICS,
& EXCHANGE
TOTAL NUMBER OF PRODUCTS BY SEGMENT, HEALTH 2.0 SOURCE, JUNE 2015

9.
HEALTH 2.0 QUARTERLY REPORT :: Q2 2015
HEALTH 2.0 ANNUAL REPORT 2014-2015
The world of new health technologies is constantly changing, yet between
all the buzzwords, noise, and sexy new debuts, it can be hard to tell what's
what and what's actually meaningful.
The Health 2.0 2014-2015 Annual Report strips away the hype, focusing
on the actual technology and explaining key market trends laid out at the
8th Annual Health 2.0 Fall Conference. With links to more than 150 live
technology demos seen on stage and clear explanations of who these
companies are, what their product or service does, and why they were
selected to demo, the Annual Report is a comprehensive guide to the
emerging technologies that have the potential to fundamentally change
the way care is delivered and the larger industry trends they reflect.
The Health 2.0 Annual Report is available now for a discounted price and
represents Health 2.0's unique market outlook, which you won't find
anywhere else. Click here to buy the report now. For more information on
other Health 2.0 Market Intelligence products, click here.
Like What You See?
Highlights from this year’s report include:
• An in-depth deconstruction of Health 2.0’s thesis for the year: “Consumers
are getting engaged and really want a more effective health care system
(and we are on the verge of the technology being there to provide it). All this
is creating a demand for insight that is widening our scope of inquiry
beyond the clinical realm.”
• Detailed profiles of the more than 150 technologies that appeared at the
8th Annual Fall Conference, organized according to Health 2.0’s proprietary
market tracking schema.
• Analyses of key market trends, including the transformation of care
delivery, the rise of the new consumer in health, the new markets where
consumers, employers, and providers meet, and the diverse ways
increasingly sophisticated data analytics tools are being applied to
improving health and health care.
ANNUALREPORT

10.
HEALTH 2.0 QUARTERLY REPORT :: Q2 2015
ABOUT HEALTH 2.0 MARKET INTEL
Since 2007, Health 2.0 has catalyzed, tracked, and showcased the web,
SaaS, cloud, mobile, and sensor revolution in health information technology.
Our unique industry positioning and experience has given us an unrivaled
depth of knowledge in the Health 2.0 space.
Health 2.0 offers a comprehensive set of Market Intelligence offerings
that range from this quarterly data release to a curated, contextualized
newsletter, to monthly trend reports, to custom market research reports,
and subscription access to the Health 2.0 Source Database. The Health 2.0
Source database serves as the foundation of our intelligence products and
includes detailed data on more than 3,500 companies and 4,500 products.
To learn more about Health 2.0 Market Intelligence offerings, please visit
health2con.com/marketintel/market-intelligence-bundle or email
marketintel@health2con.com
ABOUT THE QUARTERLY REPORT
The Quarterly Report represents a summary set of data that explains
where industry funding is going, which product segments are growing
fastest, and where new company formation is happening. Health 2.0’s
precision and clarity when it comes to market segmentation and product
information make this quarterly release the cream of the freebie crop.
This report is provided for informational purposes and was prepared
in good faith and good fun. This report is a proprietary aggregation of
publicly and some privately available data and shall not be reproduced in a
different format without written consent of Health 2.0
QUARTERLYREPORTS
QUARTERLY REPORT CONTRIBUTORS
Matthew Holt Co-Chairman Prerna Anand Project ManagerKim Krueger Research Analyst Rachael Charbonneau Graphic Designer

11.
HEALTH 2.0 QUARTERLY REPORT :: Q2 2015
ABOUT
Health 2.0 is the premiere showcase and catalyst for the advancement of
new health technologies. Through a global series of conferences, thought
leadership roundtables, developer competitions, pilot programs, and
leading market intelligence, Health 2.0 drives the innovation and
collaboration necessary to transform health and health care.
For more information visit health2con.com
HEALTH 2.0 QUARTERLY REPORT :: Q2 2015