StartUp Health Insights - Q1 2014 Update

UNITY STOAKES Co-Founder, President

[email protected] @unitystoakes

Re-imagining Health and Wellness StartUp Health Insights Q1 2014

The Conditions are Set for an Epic Decade“There has literally never been a better time in history to be an innovator or entrepreneur in the healthcare space” -- Todd Park, U.S. CTO

Change Healthcare

Reform

Technology Mobile & Digital Health

TODAY

Acceleration Chronic Disease,

Aging & Cost

Opportunity The Golden Age of Entrepreneurship

CONFIDENTIAL INFORMATION. NOT FOR DISTRIBUTION. TM & © 2014 STARTUP HEALTH, LLC. ALL RIGHTS RESERVED.

Fund

ing

($M

)

$750

$1,500

$2,250

$3,000

Dea

ls

150

300

450

600

2010 2011 2012 2013

Deals Funding

$2,830M$2,043M$1,553M$999M

578

442

234

139139

234

442

578

Since 2010, funding in digital health is $7.4B with 1,393 dealsDigital Health Deals & Funding


$1,359 M Total Funding

133 Deals

Q1 2013

$599 M Total Funding

144 Deals

Q1 2014

Q1 2014 At-A-Glance


From last year, digital health funding has more than doubled

$105 M $89 M$78 M

$77 M $61 M

$50 M $41 M $40 M2222222

33

TOP VCs BY DEAL COUNTTOP DEALS

Q1 2014 At-A-Glance


$50 M

6

The majority of funding took place in Northern California and the Northeast

$561

$167M

$89M

$122M

$75M

$69M

$80M

$101M

$54M

$48M


Most active US regions in 2013

7

Big Data!!!!!!!!!

$712M!114 deals

Navigating the Healthcare

System!!!!

$492M!86 deals

Patient Engagement!

!!!!

$359M!97 deals

Personal!Health!

!!!!

$442M!106 deals

Vital Signs Monitoring /

Sensors!!!!

$364M!43 deals

Most of the money is going to lowering the costs of care on the B2B


Most active markets in 2013

410%

243%

135%

82%102%

Sensors & Vital Signs Monitoring

Navigating the Health

System

Personal Health

Patient Engagement

Big Data Analytics

Growth in Top Markets in 2013


Biggest deals in 2013

9

Top 12 deals raised 23% of funding in 2013

$100M $70M

Big Data EMR

$68MPersonal Health

$65MPractice

Management

$62.5M

Sensors

$47M

Big Data

$43MSensors /

Personal Health

$41M

Big Data

$62.5M

Sensors

$47M

Big Data

$43MSensors /

Personal Health

$41M

Big Data

$40M

Big Data

$40M

Diagnostics

$40MNavigating Healthcare

$37M

Genomics


Overall Median Deal Size

10

Med

ian

Dea

l Siz

e ($

M)

$1

$2

$3

$4

2010 2011 2012 2013

Median deal size has stayed flat at $2M

*Data doesn’t include incubators


Deals by Stage

11

Early stage deals dominate the number of deals at 71% in 2013

2010

2011

2012

2013

0% 25% 50% 75% 100%

Incubator Seed Series A Series B Series CSeries D Series E Series F Venture Round


Median Rounds by Stage

12

General increase in size of median rounds between 2012 & 2013 for earlier stage deals

Med

ian

Roun

d ($

M)

0

5

10

15

20

2010 2011 2012 2013

Incubator Seed Series A Series B Series C Series D Series E

$11.7M$11.0M$10.0M

$6.6M

$3.7M

$650K


Follow-on Funding

13

2010 through 2011

2011 through 2012

2012 through 2013

0% 5% 10% 15% 20%

17%

18%

17%

Follow-on funding remains stable at average 17% per 2-year period

23% of companies funded in 2011, received follow-on funding


Who is doing the funding in 2013?

14

9

9

7

6

6

65

6

67

5

6

5


VCs are doubling down

15

0

1

2

3

4

5

6

7

8

9

13 21 38 78 255

31% of VCs invested in more than 1 deal in 2013 41% of VCs invested in more than 1 deal since 2012


Corporations are getting involved

16


Health & Medicine

StartUp Health Insights - Q1 2014 Update