Health 2.0 Quarterly Report (Q3 2016)

HEALTH 2.0 QUARTERLY REPORT :: Q3 2016

QUARTERLYREPORTS


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TECH BY (AND FOR) WOMEN Health tech led by or designed for women were in the news at both TechCrunch

Disrupt and Health 2.0. Q3 saw well known VC Lisa Suennen launch CSweetener, a

nonprofit aimed at mentoring female healthcare entrepreneurs. Montreal-based

Omsignal raised $10M for a smart bra product, and prenatal sensor start-up

Bloomlife raised $4M this quarter.

PATIENT ENGAGEMENT 2.0 Like “interoperability” before it, “patient engagement” has become the digital health

buzzword du jour. At the Health 2.0 conference and beyond, firms discussed passing

obvious and easily forgotten solutions to stickier ways of encouraging patient success.

Accolade raised $71M this quarter for its digital patient concierge service, and

ShareCare acquired BioLucid, a visual storytelling company which helps patients

understand their illnesses. Zillion ($28M) offers healthcare tutorials but also

aggregates wearable tech data into useful information to track patient goals.

UNDERSERVED COMMUNITIES There’s increasing emphasis on digital health solutions for underserved

communities who often receive expensive or suboptimal care. Azalea Health

($11M) is building clinic and telehealth software for rural practices, and

RubiconMD raised $750K for its platform that allows subspecialists to consult

with rural doctors. Anthem announced the launch of Spanish telehealth visits for

its California members. At Health 2.0, RWJF launched a program to increase

diversity in the health tech community.

TYPE 2 COLLABORATIONSDiabetes and its massive healthcare market continue to be a draw for digital

health shakers, evidenced by the massive $500M deal from Verily & Sanofi for new

diabetes venture Onduo. Glooko ($8M) merged with Diasend, combining a

patient platform with the latter’s big data powers to interpret diabetes device

data for patients. Insulet launched a tablet app for Type 1 children, and

Companion Medical received FDA approval for its smart insulin pen.

Things We Care About, Q3 2016


1971CONSUMER FACING

1029PROFESSIONAL

FACING

382PATIENT PROVIDER COMMUNICATION

486DATA, ANALYTICS,

& EXCHANGE

3868ALL COMPANIES

Health 2.0 tracks companies in our 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 ticked up this quarter,

adding 83 companies overall. The Consumer Facing category added 46 companies, and the

Professional Facing category added 10 companies.

The Patient Provider Communication category

added 21 firms, while the Data, Analytics, and Exchange category added 6.

Health 2.0 Source: Total Companies By Category

HEALTH 2.0 SOURCE COMPANIES BY CATEGORY, JUNE 2016


.1%

1.1%.8%

1.4%5.1%

17.6%73.9%

The lion’s share is still in North America, with 74% of digital health

companies located there. However, a strong contingent belongs to Europe with 17%, and emerging companies in Australia and South

America account for international growth.

AS THE HEALTH 2.0 COMMUNITY grows around the world, it’s

being reflected in the Source database. Here’s a map of the world showing the global distribution of companies

Health 2.0 Around the World


2011

1.0 B 1.6 B 2.2 B

4.6 B 4.8 B

2012

4.5 B

2016

2013

2014 2015

FUNDING FOR THE HEALTH 2.0 space is

already neck-and-neck with last year’s 12-month funding total. Approximately $1.3B was

invested from July through September.

Funding Keeps Flowing

Funding for 2016 has busted predictions. Although funding slowed slightly since Q1 of 2016 (when funding reached $1.7B), Q3 of 2016 totaled a whopping $1.29B in deals. Another chart-topping $500M deal was included in those figures. We predict that funding could reach $5.5B by the end of 2016.

HEALTH 2.0 ANNUAL FUNDING


2.4BCONSUMER FACING

786MDATA, ANALYTICS,

& EXCHANGE

365MPATIENT PROVIDER

COMMS

355MPROFESSIONAL

FACING

THE CONSUMER FACING category continued to drive

venture funding, but with strong growth across the board. Massive deals for new venture Onduo ($500M) and Accolade

($71M) contribute to 2016’s record funding totals.

Consumer Facing Funding STILL On Top

Two of the biggest deals this quarter:

*71M* 500M

2016 FUNDING BY CATEGORY AND QUARTER

*Q2: 100M

Q1: 127MQ1: 312M

Q2: 248M

Q1: 120M

Q2: 105M

Q1: 1.14B

*Q2: 1.3B

Q3: 128MQ3: 226M

*Q3: 140M

ONDUO

*Q3: 793M


THE TOP DEALS of Q3 2016 totaled to

$854M and represent nearly 66% of total funding this quarter.

Hot Stuff: Top Funding Deals in Q3, 2016

CONSUMER FACING PROFESSIONAL FACING

PATIENT PROVIDER COMMUNICATION

DATA, ANALYTICS, & EXCHANGE

TOP FUNDING DEALS OF Q3 2016Fall’s top deals shine a spotlight on chronic disease management and senior care. Onduo ($500M), a new joint venture from Google’s Verily and pharma giant Sanofi, seeks to improve products for diabetes management. Chrono Therapeutics ($47.6M) tackles addiction with a connected nicotine patch. And Endotronix ($32M) is pioneering an implantable connected cardiac sensor for heart failure monitoring. Meanwhile, ClearCare ($60M) has focused on home care facility software , betting that the market will grow as Baby Boomers age, and Honor raised $42M for its on-demand senior caregiving service. Other major raises include Accolade ($71M) a digital health personal assistant company, the virtual pharmacy PillPack($31M), big data AI firm Cognitive Scale ($22M) and robotic surgery start-up Cambridge Medical Solutions ($20M).

500M

75M

50M

25M

ONDUO


0 10 20 30 40 50 60 70 80 90B2B-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 …

Clinical Trials Search & Recruitment

Gaming

Financial Management

Patient Communities

Search

Wellness

Content

Self-Management Tools & Trackers

This year, our team has added hundreds of products to Source. We saw the greatest gains in wellness, patient-provider communication and security products in the last 12 months. We expect product growth to continue its strong trajectory and accelerate into 2017 as digital health funding continues to flame.

THIS GRAPH SHOWS the percentage growth

in product additions to Health 2.0 Source by segment. Our team has steadily added

products to the Source as they are released,

creating a product encyclopedia for expert

market insight.

If You Remember One Thing: Products Are Not Companies, Companies Are Not Products

CONSUMER FACING

PROFESSIONAL FACING

PATIENT PROVIDER COMMUNICATION

DATA, ANALYTICS, & EXCHANGE

PRODUCT GROWTH BY SEGMENT IN PAST 12 MONTHS, HEALTH 2.0 SOURCE, SEPTEMBER 2016


ABOUT HEALTH 2.0 MARKET INTELSince 2007, Health 2.0 has catalyzed, tracked, and showcased the SMACK (social/sensor, mobile, analytics, cloud & kindness!) revolution in health information technology. Our longevity and independent industry positioning gives us an unrivaled depth of knowledge.

Health 2.0’s Market Intelligence offerings range from this quarterly data release 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 3,700 companies and 4,500 products. To learn more about Health 2.0 Market Intelligence offerings, please visit health2con,com or email [email protected]

ABOUT THE QUARTERLY REPORTThe 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 Data Analyst Rachael Charbonneau Graphic Designer Sofia Noori Data Intern


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 & Medicine

Health 2.0 Quarterly Report (Q3 2016)