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HEALTHTECH INVESTMENT LANDSCAPE
INVESTMENT TRENDS
Key findings
Asia
China focus
Rest of Asia focus
ASIA
H1 2017
It is with great pleasure that we share with you our inaugural Asia HealthTech investment landscape report which we hope you will find helpful.
This marks a significant milestone for the Galen Growth Asia team which has diligently been building and curating the Asia HealthTech database so as to be able to create a better understanding of the vibrancy of the ecosystem in the region.
The Galen Growth Asia Analytics is a new value proposition with the goal to provide the ecosystem stakeholders with the appropriate and necessaryinsights to make informed business decisions.
We will also be launching an online version of our Galen Growth Asia Analytics tool in November 2017 at our first-of-it's-kind HealthTech Investor Summit in Singapore.
We would love to hear your opinion of the report, your ideas to improve it or simply to share with us Asia HealthTech deal or transaction information. Please contact us at: analytics@galengrowth.asia
JULIEN DE SALABERRY
galen growth asia
Co-founder, Managing director
1©2017 by Galen Growth Asia - All rights reserved.
ABOUT US
In partnership with corporations, government organizations, startups and
key stakeholder groups, Galen Growth Asia is building an integrated
innovation network focused on HealthTech startups to innovate, disrupt
and solve our healthcare systems pain points.
Galen Growth Asia believes that HealthTech will play a central role in
addressing health system inefficiencies in an effective and efficient
manner and thus significantly improving the standard of healthcare in Asia.
Through our focus on enabling both social value and investing
opportunities, we mobilize thought leaders in healthcare and technology,
support innovators in HealthTech to inform their solutions and business
models, and provide valuable insights for business development and
investment opportunities.
ASIA'S HEALTHTECH CONNECTOR
galen growth asia2©2017 by Galen Growth Asia - All rights reserved.
ABOUT GALEN GROWTH ASIA HEALTHTECH DATABASE
The Galen Growth Asia database is the only
comprehensive HealthTech database which
captures information about the growing Asia
startup HealthTech ecosystem.
The database captures numerous relevant data
points for each startup including funding and
performance information.
The full database and its analytics will be available
to the public in Q4 2017. Subscribe via our website
to receive further information.
THE ONLY DATABASE DEDICATED TO ASIA HEALTHTECH
galen growth asia
3000+ VENTURES
3000+ STARTUPS
3©2017 by Galen Growth Asia - All rights reserved.
KEY FINDINGS
MORE DEALS THAN EVER
HEALTHTECH MATURES IN 2017
ASIA HEALTHTECH UNDISCLOSED
CHINA IS IN POLE POSITION
SERIES B STABLE WHILE SERIES A LOSE MOMEMTUM
FIVE HUBS ABOVE ALL
With 127 deals this year to June 2017, the first half of 2017 counted more deals in Asia HealthTech than any of the precedent years . We project that by year end more than 270 deals will be closed, which is a 300% increase on 2016.
2016 and 2017 saw a slow down in the number of new HealthTech startups incorporated whilst startups founded in 2014 and 2015 are raising greater rounds of funding as they scale.
Amongst the 127 deals counted in H1 2017, more than 20% remain undisclosed. While 80% of these undisclosed deals were early stage investments, 20% were Series A investments or higher.
In China, more money is being invested than in any other country in Asia. The top 5 deals in China represent 30% of the total investment in HealhTech in Asia. China also represents 50% of all investments in Asia.
Since Q3 2016, Series A stage investments continue to lose share QoQ, with Series B share growing from 8% in Q3 2016 to 18% in Q2 2017.
India, China, Singapore, Indonesia and Australia combined are home to 80% of all HealthTech startups in Asia.
5©2017 by Galen Growth Asia - All rights reserved.
THE ASIA HEALTECH REPORT
Is an analysis of
HealthTech investments
from over 21 countries in Asia
galen growth asia
3000+ VENTURES
FRONTIER MARKET
DEVELOPING MARKET
MATURE MARKET
1) Bangladesh 2) Bhutan 3) Cambodia 4) Laos 5) Myanmar 6) Nepal
1) China 2) India 3) Indonesia 4) Malaysia 5) Philippines 6) Sri Lanka 7) Thailand 8) Vietnam
1) Australia 2) South Korea3) Hong Kong 4) Japan 5) New Zealand 6) Singapore 7) Brunei
6©2017 by Galen Growth Asia - All rights reserved.
galen growth asia
3000+
ASIA HEALTHTECH KEY MARKETS
With 36 %, India is home to more HealthTech
startups than any other Asia country
Despite its size, Singapore is host to 12% of
Asia HealthTech startups driven by its ongoing
investments in tech innovation and its very
favorable economic and legal climate
Rest of Asia, combined, which includes
mature, developing, and frontier markets,
share 20% of the Asia HealthTech ecosystem
demonstrating the lack of an environment
condusive for HealthTech startups to grow
NUMBER OF HEALTHTECH
STARTUPS IN %
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galen growth asia
3000+
ASIA HEALTHTECH KEY CATEGORIES
*Not depicted are categories with a share of <4%
9©2017 by Galen Growth Asia - All rights reserved.
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3000+
H1 2017 ASIA HEALTHTECH INVESTMENTS
SHARE BY COUNTRY
With 79% of all deals closed by value and 87%
of the total volume invested in H1 2017, China
and India recorded the majority of HealhTech
deals in Asia
Developed countries, Singapore, Australia,
South Korea and Japan, represent 17% of all
deals but only 13% of the total value invested
Though counting 37% fewer deals than in
Singapore, Australia’s total value invested was
42% higher
10©2017 by Galen Growth Asia - All rights reserved.
galen growth asia
ASIA HEALTHTECH FUNDING HISTORY
2016-2017
2017 HealthTech funding is on track
to exceed 2016
Through H1 2017, more than $1.2B has been
invested in 127 deals at a stable QoQ deal flow
rate
In comparison, H1 2017 saw more deals closed
than 2016 , however at a smaller deal value
At current pace, deal volume will grow by
151%, while value will close 7% ahead of 2016
totals
The higher deal count signals a vibrant Asia
HealthTech ecosystem
11©2017 by Galen Growth Asia - All rights reserved.
galen growth asia
3000+
QOQ ASIA HEALTHTECH FUNDING HISTORY
2016-2017
Deal volume accelerates while funding by
value weakens
On a quarterly basis, deal volume increased
by more than 200% between Q4 2016 and Q1
2017 and stabilized in Q2 2017
Funding by value in H1 2017 closed 20%
weaker year on year
A notable outlier deal in May 2016 was Ping
An’s $500M Series A investment in Good
Doctor
Most notable deal in H1 2017 is the $200M
Series D by Hao Daifu from Tencent Holdings
12©2017 by Galen Growth Asia - All rights reserved.
galen growth asia
3000+
QOQ ASIA HEALTHTECH FUNDING DEAL SHARE BY STAGE
Q1 2016-Q2 2017
Seed stage deals level off while Series A
looses momentum
The volume of early stage deals maintains a
constant share exceeding 40% of all deals
The number of Series A stage deals slowed
while Series B deals reached an all-time high
*Early stage deals include Angel & Seed deals
13©2017 by Galen Growth Asia - All rights reserved.
galen growth asia
ASIA HEALTHTECH DEAL SIZE RANGES AND MEDIAN
H1 2016-H2 2017
2016 deal size exhuberance showing signs of
sobriety in 2017
Early and growth stage median deal size
stable for the last six quarters
Median deal size is expected to increase in
line with Series B and beyond stages growing
in value
14©2017 by Galen Growth Asia - All rights reserved.
galen growth asia
3000+
QOQ CHINA HEALTHTECH FUNDING HISTORY
Investments continue to strengthen in 2017
Despite weakening in Q2 2017, investments by
value in China remain strong
Q2 2016 significantly exceeds Q2 2017 driven
by one outlier deal namely the Good
Doctor $500M Series A
Deal count has increased by more than 60% in
H1 2017 compared to H1 2016
16©2017 by Galen Growth Asia - All rights reserved.
galen growth asia
3000+
QOQ CHINA HEALTHTECH FUNDING DEAL SHARE BY STAGE
Q1 2016-Q2 2017
Growth stage funding remains strong in 2017
Venture funding by value for Series B rounds
and above increases to 40% in total for Q2 2017,
up from 33% and 25% in the preceding two
quarters
Series A and Series B stages remain the most
prominent venture rounds for the third
consecutive quarter
17©2017 by Galen Growth Asia - All rights reserved.
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3000+
H1 TOP 5 CHINA HEALTHTECH DEALS
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3000+
QOQ REST OF ASIA HEALTHTECH FUNDING HISTORY
Investment by value experienced strong
growth
Funding in H1 2017 rockets, growing by 450%
year on year when compared to H1 2016
Deal volume grew to an all-time high of 38
investments in Q2 2017, a threefold increase
on Q2 2016
20©2017 by Galen Growth Asia - All rights reserved.
galen growth asia
3000+
QOQ REST OF ASIA HEALTHTECH FUNDING DEAL SHARE BY STAGE
Q1 2016-Q2 2017
Rest of Asia investments begin to mature
with HealthTech startups continuing to raise
early stage funding, stabilizing the share in
excess of 60% since Q2 2016
2017 already recorded more growth and late
stage funding rounds than 2016 in total,
indicating that rest of Asia is starting to mature
Early state funding rounds continue to
represented the lion share of investments
made
21©2017 by Galen Growth Asia - All rights reserved.
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3000+
H1 2017 TOP 5 REST OF ASIA HEALTHTECH DEALS
22©2017 by Galen Growth Asia - All rights reserved.
METHODOLOGY
WHAT WE DEFINE AS HEALTHTECH
WHAT WE TRACK IN OUR REPORT
HealthTech defines the intersection between healthcare and technology and is also referred as digital health. HealthTech does not include Biotech, such as protein research or pharmaceuticals, and also does not include MedTech, such as devices that are implented into the body.
Galen Growth Asia tracks venture funding amongst other key data for HealthTech startups in Asia. Countries that are included are (in alphabetical order)Australia/New Zealand, Bangladesh, Bhutan, Brunei, Cambodia, China (mainland), Hong Kong, India, Indonesia, Japan, Laos, Malaysia, Myanmar, Nepal, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, and Vietnam.
HOW DO WE TRACK FUNDING
WHERE WE GET OUR INFORMATION
FROM
LEXICON
Galen Growth Asia is tracking all undisclosed and disclosed rounds in Asia, including early-stage funding.
Funding data includes, different types of venture funding events and acquisition transactions. The funding data is based on startup direct reporting, publicly available resources, such as press releases, and news.
YoY: Year on year HoH: Half-year on half-year QoQ: Quarter on quarter
23
This report is provided for informational purposes and was prepared in good faithon the basis of public information available at the time of publication without independentverification.
Galen Growth Asia does not guarantee or warrant the reliability or completeness of the data nor its usefulness in achieving any particular purposes.
Galen Growth Asia 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 Galen Growth Asia
IMPORTANT INFORMATION
©2017 by Galen Growth Asia - All rights reserved.
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