Digital Health Funding Rankings

Transcription

1 Published: April 1, 2015 StartUp Health Insights TM Digital Health Funding Rankings Q Report INCLUDING 50+ MARKET FUNDING SPONSORED BY A StartUp Health Insights TM Report Published October 1, 2015 Report data through September 30, 2015 Report is inclusive of seed, venture, corporate venture and private equity funding Sign up to receive weekly funding insights at startuphealth.com 2015 StartUp Health, LLC

2 2015 Year to Date and Q3 Summary Overall 2015 funding year to date is slightly behind that of the same time last year. After a slower start to the year, Q3 funding increased and is on par with Q Signs of a Maturing Market: The market continues to see a steady increase in mid stage (Series B and C) deals with 31%, as early stage deals hold strong with 64% of this year s volume. With the continued growth of Series A rounds, we predict that follow-on rounds will increase in pace as entrepreneurs are able to prove significant traction to gain investors confidence. A Diverse Investor Landscape: A few years ago, it was incredibly rare to see traditional tech VCs and corporate VCs investing in healthcare. Today, both of these groups are integral in the market. This quarter, however, saw the advent of a non-venture investment firm and a holding company entering the ranks of top investors for the year. Personalized Medicine Gains Traction: Genomics and diagnostics as subsectors make up a large portion of both early and late stage deals. As cancer paves the way for personalized DNA-based therapies, we expect to see opportunities focused on newborns, immunology and infectious disease begin to gain steam. Wellness and Patient / Consumer Experience Sectors Are on Top: Although big data still continues to garner a lot of interest from investors, wellness solutions and patient / consumer experience companies have picked up momentum. Global Innovation: More than 7,700 startups around the world are developing solutions in digital health, based on StartUp Health Insights data. Innovation continues to thrive as borders between technologies, talent and nations blur to spur real change in medical systems at home and abroad. 2

3 Digital Health Funding Snapshot Year Over Year Q continues to demonstrate a trend towards digital health market maturity with an increase of investment dollars combined with larger, less frequent deals $8 468 $6.9B Funding ($B) $6 $4 $2 151 $1.2B $265M 279 $2.0B $681M $2.5B $646M $2.9B $821M $1.89B 312 $4.7B $1.85B YTD Q1 Q2 Q3 Q4 Deal Count 3

4 The Top 10 Most Active Sectors of 2015 YTD The leading sector of 2014, big data / analytics, dropped in funding activity for 2015, with much of the focus around patient experience, wellness and other preventative solutions. Sector * $ Invested # of Deals Notable Deals 1 Patient / Consumer Experience $1.1B 62 2 Wellness $876M 32 3 Personalized Health / Quantified Self $461M 23 4 E-Commerce $409M 17 5 Workflows $406M 38 6 Big Data / Analytics $395M 30 7 Medical Devices $329M 34 8 Clinical Decision Support $196M 18 9 Population Health $185M Research $90M 8 Guahao Omada Health Headspace KFit Helix 23andMe PokitDoc Practo Technologies Care at Hand Kyruus LaunchPoint Metabiota InfoBionic Virtual Incision lifeimage MedCPU Grand Rounds Advance Health Codagenix Mousera * Refer to the methodologies for which subsectors make up the broader sectors listed here 4

5 The Top 10 Largest Deals of 2015 YTD Benefits and insurance solutions remain at the top of the list, particularly as the businesses become more capital intensive. Genomics companies are beginning to attract funding as the line between biotech and consumer health continues to blur. Company $ Invested Subsector Notable Investment 1 $500M Benefits 2 $394M Navigating the Healthcare System 3 $145M Insurance 4 $130M Navigating the Healthcare System 5 $108M Genomics 6 $100M Personalized Health Undisclosed 6 $100M Insurance 8 $90M Navigating the Healthcare System 9 $79M Genomics Undisclosed 10 $70M Big Data / Analytics 10 $70M Benefits *Clover Health deal is a combination of equity and debt. 5

6 The Top 10 Deals Under $10M of 2015 YTD Mirroring the broader digital health market, deals under $10M show the rise in popularity of funding of patient / consumer experience startups. Company $ Invested Subsector Notable Investor 1 $9.6M Sensors 2 $9.5M Navigating the Healthcare System Angels 2 $9.5M Mental Health 4 $9.4M Diagnostics 5 $9.1M Pharmaceuticals 6 $9.0M Corporate Wellness 7 $8.7M Wearables 8 $8.6M Navigating the Healthcare System 9 $8.4M Diagnostics 10 $8.0M Diagnostics Undisclosed 10 $8.0M Health IT 10 $8.0M Social Engagement 10 $8.0M Big Data / Analytics 6

7 The Top 10 Most Active US Metro Areas of 2015 YTD While it s no surprise that the Bay Area continues to bring the most funding YTD, emerging regions continue to grow. With Chicago, Salt Lake City and South Florida each taking in over $125M, it s clear that investment opportunities are everywhere. Metro Area 1 SF Bay Area 2 NYC Metro Area 3 Boston 4 South Florida 5 Los Angeles 6 Chicago 7 Salt Lake City 8 San Diego 9 DC Metro Area 10 Seattle SF Bay Area (81 Deals) $1.6B Los Angeles (12 Deals) $245M San Diego (4 Deals) $90M Seattle $80M (8 Deals) Salt Lake City (8 Deals) $134M $148M Chicago (14 Deals) $508M New York City (37 Deals) Boston (28 Deals) $318M $87M (5 Deals) DC Metro Area South Florida (12 Deals) $248M 7

8 Deal Activity by Stage for 2015 YTD Keeping with last year s trend, Seed and Series A rounds comprised 64% of funding activity in 2015 YTD. Meanwhile, Series B and C rounds are continuing to increase their share of total 2015 deals, demonstrating the maturation of the market YTD 29% 35% 20% 11% 2% 0% 25% 50% 75% 100% Seed Series A Series B Series C Series D Series E Series F + G 8

9 Funding Deep Dive: Funding of the Top 3 Specialties 2015 YTD While the total dollars in oncology, cardiology and diabetes has decreased since 2014, funding in these chronic diseases continues to be the leading areas of interest for investors. The biggest challenge for entrepreneurs will be differentiating themselves in the market, as investors learn more about the landscape. $1.00B $0.75B $0.50B $0.25B $0.00B $0.3B YTD Oncology Cardiology Diabetes 9

10 Funding Deep Dive: Early Stage Median Investment Landscape The abundance of capital for innovation in digital health, coupled with investors wanting to see more traction at the Series A round stage, have contributed to Seed round median size growing faster than Series A deals. $7M $6M $5M $4.5 $4.6 $4M $4.0 38% $5.5 9% $6.0 $3M $3.4 $2M $1M $1.0 $0.8 $0.6 $0.8 80% $1.3 36% $ YTD Seed Round Series A 10

11 The Top 12 Most Active Venture Investors of 2015 YTD Investors outside of traditional venture firms are placing significant bets within digital health with corporate VCs, an investment firm and a holdings company making our top 12 most active list YTD. Firm 2015 YTD Deals 2014 Deals Stage Early Mid Late 11

12 50+ Market Funding Snapshot for 2015 YTD 50+ market funding in Q gained momentum, with a 50% increase over the funding averages of Q1 and Q $4.0B Deals $1.7B $3.2B $2.4B $1.6B $0.8B Funding ($B) $0.7B $1.3B $1.5B $1.6B $3.5B $1.7B YTD Deals Funding 12

13 50+ Market Investments as % of Total Investments in Digital Health Investments relevant to the 50+ market have contributed to nearly half the funding in the last five years, with the number of deals as a percent of all digital health hovering around 50%. 100% 80% 47% 26% 60% 56% 58% 58% 50% 51% 50% 40% 49% 50% 49% 44% 45% 50% 50% 54% 20% YTD % of Total Deal Count % of Total Funding 13

14 The Top 50+ Market Venture Investors of 2015 YTD Investors around the globe are funding companies that address the needs of 50+ consumers at all stages, with notable involvement from corporate and strategic investors. Firm 2015 YTD Deals Notable Deal Stage 1 7 HeartFlow 2 6 Doctor on Demand 3 5 Caremerge 3 5 Stride Health 3 5 Noom 6 4 PillPack 6 4 Wildflower Health 6 4 Accolade 6 4 Stride Health 6 4 Omada Health Early Mid Late 14

15 Our Methodologies General: StartUp Health has 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 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. Q2 & Q brought with it an extensive database quality assessment. A new, evolving 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 past reports. Sectors: StartUp Health defines sector as one of the below 13 major markets that make up the bulk of funding in digital health. Each sector, is also broken into subsectors, which can crossover among sectors. A list of the sectors and examples of subsectors are below: Big Data / Analytics: Pharma, Predictive, Research Clinical Decision Support: EMR, Physician Tools, Point of Care E-commerce: Marketplaces, Media, Supply Chain Education / Training: Gamification, Medical Device, Mobile Apps EMR: Fraud, Patient Portals, Workflows / Interoperability Medical Devices: Diagnostics, Medical Imaging, Sensors Patient / Consumer Experience: Medication Adherence, Navigating the Healthcare System, Telemedicine Personalized Health / Quantified Self: Genomics, Personalized Medicine, Wearables Population Health: Big Data / Analytics, EMR, Patient Engagement Research: Clinical Trials, Genomics, Pharma Wellness: Benefits, Mental Health, Nutrition Workflows: Scheduling, Care Coordination, Billing 50 Plus: Behavioral Health, Medication Adherence, Vital Signs Monitoring Investments in subsectors are not mutually exclusive as deals are tagged with multiple subsectors. Stage of funding: StartUp Health Insights records only publicly available data on cash for equity investments as the cash is actually received by the company. StartUp Health Insights is inclusive of all accelerator, seed, venture, corporate venture and private equity funding. Funding from accelerators is not included in these quarterly reports. 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, the most comprehensive funding database for digital health, and managed by the StartUp Health team. Information, data and figures represent only publicly available data, unless otherwise confirmed by the company receiving capital or a participating investor. Data for acquisitions slide was provided by a range of sources including StartUp Health Insights, CrunchBase, AngelList and news reports. StartUp Health works to ensure that the information contained in the StartUp Health Insights 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. 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. 15

16 About StartUp Health StartUp Health is a global health innovation company. The StartUp Health Platform, including its Academy, Network and Innovation Fund, is empowering a global network of entrepreneurs and innovators to transform healthcare. With over 100 companies, StartUp Health has the world s largest portfolio of digital health companies from 11 countries and 50 cities. StartUp Health was founded in 2011 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, AON, Aurora Health Care, California Healthcare Foundation, Steve Case, Cleveland Clinic, Conifer Health Solutions, Mark Cuban, Esther Dyson, Roger Ehrenberg, Brad Feld, GE Ventures, Kaiser Permanente Ventures, Robert Wood Johnson Foundation, SeventySix Capital and Stericycle. Learn more at startuphealth.com and For press inquiries, press@startuphealth.com 16

17 StartUp Health Companies