StartUp Health Insights: 
Digital Health Funding Rankings 
Q3 2014 
© 2014 StartUp Health, LLC 
Published: 10/1/2014 
A St...
DEALS & FUNDING INVESTORS MOMENTUM 
Q3 2014 SUMMARY 
2014 is shaping up to be another record year for digital health, with...
INVESTORS MOMENTUM 
DIGITAL HEALTH FUNDING SNAPSHOT (YTD) 
600 
450 
300 
Source: StartUp Health Insights | www.startuphea...
INVESTORS MOMENTUM 
DIGITAL HEALTH FUNDING SNAPSHOT Q3 YEAR OVER YEAR 
$6 
$5 
$3 
Source: StartUp Health Insights | www.s...
DEALS & FUNDING 
INVESTORS MOMENTUM 
THE TOP 10 LARGEST DEALS OF 2014 (YTD) 
Source: StartUp Health Insights | www.startup...
DEALS & FUNDING 
THE TOP 10 MOST ACTIVE SUBSECTORS OF 2014 (YTD) 
Big data is clearly a big winner. Even if companies don’...
DEALS & FUNDING 
INVESTORS MOMENTUM 
THE TOP 10 MOST ACTIVE METRO AREAS OF 2014 (YTD) 
The Bay Area continues to attract t...
DEALS & FUNDING INVESTORS MOMENTUM 
2014 DEAL SIZE RANGES & MEDIANS BY STAGE (YTD) 
$3.0M $7.3M $15.0M 
$0 $400M 
$3.0M $8...
DEALS & FUNDING 
2014 DEAL ACTIVITY BY STAGE (YTD) 
Mid-stage deals continue to gain momentum, with 31% of companies recei...
DEALS & FUNDING INVESTORS 
MOMENTUM 
THE TOP VENTURE INVESTORS OF 2014 (YTD) 
In addition to traditional tech VCs, a few c...
MOMENTUM 
DEALS & FUNDING INVESTORS 
Digital health continues its march into the mainstream as more consumer brands -- lik...
METHODOLOGIES 
12 
• Funding data is from StartUp Health Insights, the most comprehensive funding database for digital hea...
ABOUT STARTUP HEALTH 
13 
StartUp Health is a global growth platform for entrepreneurs transforming healthcare. StartUp He...
STARTUP HEALTH COMPANIES 
14 
ACQUIRED COMPANIES
StartUp Health Insights: 
Digital Health Funding Rankings 
Q3 2014 
© 2014 StartUp Health, LLC 
Published: 10/1/2014 
A St...
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StartUp Health Insights - Digital Health Funding Rankings Q3 2014

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If you thought last year was big for digital health funding, take a look at this year's numbers. According to StartUp Health's Q3 funding report, investors have already poured $5 billion into digital health companies. That means funding in the sector isn't just higher than last year's total, it's on track to double it. Our new report includes the top 10 largest deals, as well as the top 10 (or so) most active investors, subsectors and metro areas. And it’s free - so dive in!

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StartUp Health Insights - Digital Health Funding Rankings Q3 2014

  1. 1. StartUp Health Insights: Digital Health Funding Rankings Q3 2014 © 2014 StartUp Health, LLC Published: 10/1/2014 A StartUp Health Insights TM Report Take the pledge at startuphealth.com/pledge for weekly funding insights
  2. 2. DEALS & FUNDING INVESTORS MOMENTUM Q3 2014 SUMMARY 2014 is shaping up to be another record year for digital health, with funding in the first three quarters already far exceeding the total amount invested in 2013. Our quarterly report gives a snapshot of the sector’s “top 10” (give or take) investors, subsectors, deals and more. Here are eight trends we’re watching: Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC 2 1 2014 Funding Reaches Record Levels: Through Q3, 347 companies have raised $5B from investors including Founders Fund, Khosla Ventures and Sequoia Capital. 2014 is on track to nearly double the total invested in 2013. 2 Deal Sizes Increase: Investment size continues to climb as the market matures and more private equity firms pour capital into the sector. As startups raise more cash, speculation is also building about the next wave of IPOs. 3 M&A Activity Picks Up: Even though summer activity tends to be slow, Q3 saw 15 acquisitions by companies including Google, Practice Fusion, Cerner and WebMD/Medscape. 4 ACA Spurs Innovation: Health reform continues to drive changes in the industry and encourages startup activity in the sector. 5 Consumerism Grows: As a result of high-deductible plans, price transparency and new tech solutions, patients are becoming more empowered. Brands like Apple, Facebook and Google are making bigger waves in healthcare. 6 Privacy Concerns Mount: As the Apple iCloud hacking scandal underscored, keeping health data safe in the cloud is becoming more top-of-mind for consumers and companies. 7 Wearables Move Into the Mainstream: We’re not there yet, but the debut of the Apple Watch, Basis Peak, Moto 360 and Samsung Gear Live show that wearables are clearly moving closer to the mainstream. 8 Global Innovation Accelerates: More than 5,000 startups around the world are developing new solutions in digital health, based on data from the StartUp Health Network.
  3. 3. INVESTORS MOMENTUM DIGITAL HEALTH FUNDING SNAPSHOT (YTD) 600 450 300 Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC 3 Funding ($B) $5B $4B $3B $1B Deals 150 2010 2011 2012 2013 YTD 2014 Deals Funding $5.0B $2.8B $2.2B $1.7B $1.1B 347 533 447 242 142 DEALS & FUNDING Funding in the first three quarters of the year has skyrocketed past the total invested in 2013. Although deal volume is lower, investors are putting more money in fewer startups, indicating the market’s gradual maturation.
  4. 4. INVESTORS MOMENTUM DIGITAL HEALTH FUNDING SNAPSHOT Q3 YEAR OVER YEAR $6 $5 $3 Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC 4 DEALS & FUNDING Funding in the third quarter of 2014 nearly doubled over the same period last year, from $946M to $1.7B, mostly because of a few notably large deals. 111 deals closed in Q3 2014, compared with 156 closed in Q3 2013. Funding ($B) $2 $946M 2010 2011 2012 2013 2014 YTD Q1 Q2 Q3 Q4 $1.7B $650M $550M $230M Q3 Funding Year Over Year
  5. 5. DEALS & FUNDING INVESTORS MOMENTUM THE TOP 10 LARGEST DEALS OF 2014 (YTD) Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC 5 The top five companies have received more than 20% of all funding invested this year. The top 10 deals represent about one-third of all funding YTD. Company $ Invested Subsector Notable Investor 1 $400M Practice Management Cardinal Partners 2 $230M Patient Engagement Undisclosed 3 $172M Sensors & Diagnostics Essex Woodlands 4 $135M Clinical Decision Support Kuwait Investment Authority 5 $130M Big Data Google Ventures 6 $125M Population Health General Atlantic 7 $105M Diagnostics Capricorn Investment Group 8 $100M Big Data General Atlantic 9 $89M Workflow Systems Hutton Collins 10 $80M Insurance Founders Fund
  6. 6. DEALS & FUNDING THE TOP 10 MOST ACTIVE SUBSECTORS OF 2014 (YTD) Big data is clearly a big winner. Even if companies don’t primarily identify with the subsector, they’re encouraged to show a big data and analytics play to attract investor support. Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC 6 Subsector $ Invested # of Deals Largest Deals 1 Big Data / Analytics $1.17B 77 • Flatiron Health • Alignment Healthcare 2 Navigating the Care System $794M 40 • Preventice • Oscar 3 Practice Management $598M 26 • Privia Health • Zenefits 4 Sensors / Diagnostics $498M 25 • NantHealth • Flatiron Health 5 Patient Engagement $440M 38 • Preventice • One Medical 6 Consumer Health $439M 46 • Zenefits • Bswift 7 Insurance $381M 9 • Oscar • Zenefits 8 Vital Sign Monitoring $284M 17 • Proteus Digital Health • Omada Health 9 Aging with Vitality $242M 14 • NantHealth • Audax Health 10 Genomics $200M 14 • Human Longevity • Quantapore Note: Investments in the above subsectors are not mutually exclusive as deals are tagged with multiple subsectors. INVESTORS MOMENTUM
  7. 7. DEALS & FUNDING INVESTORS MOMENTUM THE TOP 10 MOST ACTIVE METRO AREAS OF 2014 (YTD) The Bay Area continues to attract the most funding, as interest in New York startups grows. The DC area rounds out the top three by funding amount, while Boston is the third most active area by deal count. Metro Area $ Invested # of Deals 1 SF Bay Area $948M 62 2 New York City $584M 33 3 DC / MD $536M 14 4 Los Angeles $341M 9 5 Minneapolis $242M 3 6 Boston $189M 26 7 San Diego $155M 13 8 Chicago $101M 5 9 Louisville $76M 2 10 Austin $56M 4 Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC 7 $341M $584M $242M $948M $536M
  8. 8. DEALS & FUNDING INVESTORS MOMENTUM 2014 DEAL SIZE RANGES & MEDIANS BY STAGE (YTD) $3.0M $7.3M $15.0M $0 $400M $3.0M $8.0M $20.7M $50.0M $40M $2.6M $12.0M Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC $41.7M $0 $20M $80M $400M $0 $70M $10M $13.5M $0 $50M Early Stage (Seed + Series A) Mid Stage (Series B + Series C) Late Stage (Series D+) 8 Given that the digital health sector is relatively young, the market is seeing a broad range of deal sizes per stage. We expect the variance to subside as the sector matures.
  9. 9. DEALS & FUNDING 2014 DEAL ACTIVITY BY STAGE (YTD) Mid-stage deals continue to gain momentum, with 31% of companies receiving follow-on funding in the first three quarters of 2014. 2010 2011 2012 2013 2014 YTD 0% 25% 50% 75% 100% Seed Series A Series B Series C Series D Series E Series F Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC 9 INVESTORS MOMENTUM
  10. 10. DEALS & FUNDING INVESTORS MOMENTUM THE TOP VENTURE INVESTORS OF 2014 (YTD) In addition to traditional tech VCs, a few corporate VC firms are ramping up activity in the sector. And, with the year not quite done, several firms have already surpassed their digital health deal count of 2013. Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC 10 Investor 2014 YTD Deals 2013 Deals Stage Early Mid Late 1 6 7 ✔️ ✔️ 2 6 9 ✔️ ✔️ 3 6 4 ✔️ ✔️ 4 6 7 ✔️ ✔️ ✔️ 5 5 9 ✔️ ✔️ 6 5 2 ✔️ ✔️ 7 5 1 ✔️ ✔️ 8 5 5 ✔️ ✔️ 9 4 5 ✔️ ✔️ 10 4 1 ✔️ ✔️ 11 4 6 ✔️ ✔️ ✔️ 12 4 3 ✔️ ✔️ 13 4 7 ✔️ ✔️ 14 4 1 ✔️ ✔️
  11. 11. MOMENTUM DEALS & FUNDING INVESTORS Digital health continues its march into the mainstream as more consumer brands -- like Intel, Google, Facebook and Weight Watchers -- make their way into the industry. Q3 2014 saw 15 acquisitions. 2014 Notable Acquirers: Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC 11 Q3 2014 DIGITAL HEALTH ACQUISITIONS Acquirer Company Acquired Primary Subsector Best Doctors Rise Health Practice Management Cerner Siemens Health Services Technology Cognizant TriZetto Payor Solutions Conifer Health Solutions SPi Healthcare Provider Solutions GetWellNetworks Marbella Technologies Practice Management Google Lift Labs Sensors Health Insurance Innovations HealthPocket Navigating the Care System MedAssets SG2 Big Data / Analytics Practice Fusion Ringadoc Practice Mgmt / Communications Premier TheraDoc Practice Management Validic Infometers Vital sign monitoring Varian Medical Systems Transpire Diagnostics Viverae OneHealth Patient Engagement WebMD/Medscape TheraSim Technology (Simulation) 3D Systems Simbionix Technology (Simulation) *Indicates money raised prior to acquisition
  12. 12. METHODOLOGIES 12 • 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 publicly available data. !• Total deals and funding amounts include growth / private equity deals. ! • Investments in subsectors are not mutually exclusive as deals are tagged with multiple subsectors. !• Early stage is defined as seed and Series A, mid stage includes Series B and C, and late stage includes Series D and above. ! • In tabulating deal activity by stage we excluded rounds not clearly associated with a specific stage. ! • Data for acquisitions slide was provided by a range of sources including StartUp Health Insights, CrunchBase, AngelList and news reports. !!!!!!! 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. Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC
  13. 13. ABOUT STARTUP HEALTH 13 StartUp Health is a global growth platform for entrepreneurs transforming healthcare. StartUp Health’s long-term coaching program and trusted peer network include 165 entrepreneurs from 84 companies in 7 countries and 47 cities. StartUp Health's full-time team of entrepreneur coaches helps increase the equity value of its companies by providing structured programming and access to investors, customers and advisors from the StartUp Health Network, for every stage of a company’s lifecycle. ! StartUp Health companies have cumulatively raised over $155M and to date, three have been acquired - Basis Science by Intel, Avado by WebMD and Arpeggi by Gene by Gene. StartUp Health was founded by health tech entrepreneurs, Steven Krein and Unity Stoakes, and is chaired by former Time Warner Chairman and CEO, Jerry Levin. Investors include Mark Cuban, Esther Dyson, Roger Ehrenberg, Brad Feld, Richard Forman, Jason Finger, Linda Holliday, Jon Kaplan, Howard Krein, MD, PhD, Jon Miller, Jeff Stewart and Wayne Kimmel. ! Learn more at startuphealth.com and follow @startuphealth. For press inquiries, email press@startuphealth.com !!!!!
  14. 14. STARTUP HEALTH COMPANIES 14 ACQUIRED COMPANIES
  15. 15. StartUp Health Insights: Digital Health Funding Rankings Q3 2014 © 2014 StartUp Health, LLC Published: 10/1/2014 A StartUp Health Insights TM Report Take the pledge at startuphealth.com/pledge for weekly funding insights

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