StartUp Health’s Annual Insights Report: The Year Digital Health Hit its Stride - Polina Hanin (Digital Health @ CES 2017)

BETTING BIG BUSINESS ON DIGITAL HEALTH

January 7th, 2017

JOIN THE HEALTH TRANSFORMER MOVEMENT ™ & © 2017 StartUp Health Holdings, Inc. All rights reserved.

Polina Hanin Academy Director

@polinahanin @startuphealth

ORGANIZING AND SUPPORTING A GLOBAL ARMY OF HEALTH

TRANSFORMERSTo improve the health and wellbeing of everyone in the world


3JOIN THE HEALTH TRANSFORMER MOVEMENT

THE IDEAL OUTCOMEAchieve 100 Years of Progress in 25 Years

™ & © 2017 StartUp Health Holdings, Inc. All rights reserved.


2011 LAUNCH

100 YEARS




2011 LAUNCH

100 YEARS

2017




25 YEARS

2011 LAUNCH

100 YEARS

2017



Conditions Are Aligned for the Reimagination of HealthcareA ONCE-IN-A-LIFETIME MOMENT


A NEW MODEL FOR TRANSFORMING HEALTH

JOIN THE HEALTH TRANSFORMER MOVEMENT

Based on The Health Transformer Mindset™



GLOBAL ARMY





GLOBAL ARMY

LIFETIME COACHING





GLOBAL ARMY

LIFETIME COACHING

PARTNER ACCESS





GLOBAL ARMY

LIFETIME COACHING

PARTNER ACCESS

MEDIA PLATFORM





GLOBAL ARMY

LIFETIME COACHING

PARTNER ACCESS

MEDIA PLATFORM

DATA-DRIVEN TECH PLATFORM





GLOBAL ARMY

LIFETIME COACHING

PARTNER ACCESS

MEDIA PLATFORM

DATA-DRIVEN TECH PLATFORM

COACHING FROM “UNIQUE ABILITY” TEAM




HEALTH TRANSFORMER SHOWCASEThe World’s Largest Portfolio of Digital Health Companies


2010 2011 2012 2013 2014 2015 2016

Q1 Q2 Q3 Q4

159

298

498

670590

527599

Deal Count

$1.3B

$1.7B

$1.7B

$611M

$590M$494M

$274M

$8.1B

$5.9B

$7.1B

$2.9B

$2.4B$1.9B

$1.1B

DIGITAL HEALTH FUNDING SNAPSHOT: YEAR OVER YEAR

Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC

Over $8B have fueled new business models, increased demand, spurred a digital health revolution, and globalized what is now possible.

DEALS & FUNDING GEOGRAPHY INVESTORS

DEALS & FUNDING

$0B

$0.2B

$0.4B

$0.6B

$0.8B

$1B

$1.2B

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2013 2014 2015 2016

In comparing monthly funding over the last four years, May and October are both breakout months for digital health funding, while June is the least active month on average.

DIGITAL HEALTH FUNDING SNAPSHOT: MONTH OVER MONTHGEOGRAPHY INVESTORS


Company $ Invested Subsector Notable Investor

1 $500M Patient/Consumer Experience

1 $500M Patient/Consumer Experience Undisclosed


4 $400M Wellness

5 $220M Personalized Health

6 $160M Wellness


8 $145M Big Data/Analytics


10 $100M Medical Device Undisclosed

10 $100M Medical Device

10 $100M Personalized Health

THE TOP 10 LARGEST DEALS OF 2016Three of the top five deals in record were signed this year, demonstrating international commitment to supporting paradigm shifting ideas in digital health.



Patient/consumer experience was the most funded sector in digital health even the excluding the $1B funding raised by Onduo and Good Doctor’s. Even after excluding these two deals, it is still the most funded sector in Digital Health.

Subsector Total Raised YTD Deal Count Avg. Deal Size

1 Patient/Consumer Experience $2.8B 163 $17M

2 Wellness $1.0B 45 $23M

3 Personalized Health/ Quantified-Self $765M 47 $16M

4 Medical Device $713M 53 $13M

5 Workflow $593M 89 $7M

6 Big Data/Analytics $562M 54 $10M

7 Population Health $436M 52 $8M

8 Clinical Decision Support $332M 22 $15M

9 Research $280M 28 $10M

10 E-commerce $277M 17 $16M

THE TOP 10 MOST ACTIVE MARKETS OF 2016



We saw consistent market maturity in the patient/consumer experience, workflow, and personalized health markets, with the latter having the most late-stage deals. There were few clinical decision support, EMR, and e-commerce deals at the early stage.

47%

Patient/Consumer Experience

Wellness

Personalized Health/Quantified-Self

Big Data/Analytics

Medical Devices

Clinical Decision Support

E-Commerce

32 32 21 4 4

15 15 11 5 1

9 12 13 0 1

11 11 5 2 0

11 10 5 6 0

11 9 6 3 5

7 11 2 0 0

8 6 6 2 4

1 3 4 3 0

0 4 2 0 1

2 0 0 0 0

0 1 1 1 0

Workflow

Research

Population Health

EHR

Education/Training

Seed Series A Series B Series C Series D-H

MARKET MATURITY MAP 2016

More funding activity Less funding activity



2010

2011

2012

2013

2014

2015

2016

0% 25% 50% 75% 100%

Seed Series A Series B Series C Series D Series E Series F + G + H

31% 33% 7%22% 3%

*Deal count only includes Seed though Series G rounds. Does not include venture rounds or growth equity.

Deal Count*

124

237

304

450

391

300

344

2013 remains the year with the most early-stage investments at 74% or 331 deals. The last three years have remained strong with 2/3 of all deals being Seed or A Rounds. Steady Seed Round & Series A funding in 2016 was an encouraging sign that capital is still being distributed among early-stage digital health companies.

DEAL ACTIVITY BY STAGEDEALS & FUNDING GEOGRAPHY INVESTORS


Region

1 SF Bay Area

2 Boston Metro

3 New York Metro

4 San Diego

5 Los Angeles

6 Minneapolis/St. Paul

7 Philadelphia

8 Chicago

9 Salt Lake City

10 Washington, DC

Funding continues to be significant in the Bay Area and in the Northeast. In 2016, the metro regions of Boston and New York City yielded 208 deals (47% of all deals) and approximately $3.4B in funding (54% of all funding).

THE MOST ACTIVE US METRO AREAS OF 2016

$105M

$928M

$970M

$710M

$1.5B

San Francisco Bay Area Salt Lake City

San Diego Metro

New York City Metro

Boston Metro

$180MChicago Metro

$216M

Minneapolis / St. Paul Metro

$200M

Philadelphia Metro

(8 Deals)

(7 Deals)(116 Deals)

(15 Deals)

(15 Deals)

(17 Deals)(60 Deals)

(35 Deals)

Los Angeles Metro

$468M

(29 Deals)

Washington, DC Metro

$97M

(9 Deals)



Firm 2016 YTD Deals 2015 Deals StageEarly Mid Late

1 18 102 15 93 10 24 9 64 9 66 8 36 8 78 7 39 6 79 6 59 6 4

THE TOP INVESTORS OF 2016

We are seeing huge strides in new investors coming into the digital health scene. All of the top 10 investors of 2016 are either maintaining or increasing their involvement in the digital health Industry.



0

13

26

39

52

65

78

91

104

117

130

2010 2011 2012 2013 2014 2015 2016

2 3 4 5 6+

1

In 2016, we saw the total investor count jump by 42% - a huge signal of a booming industry. Not only are more investors entering the scene, but they are also participating in more rounds than ever. 2016 brought investment from almost 900 unique firms, angels or investment arms - almost 300 more than last year.

208318 343

517617 609

865

Inve

stor

Cou

nt

# of Deals by Investor

NUMBER OF INVESTORS YEAR OVER YEAR

Total Investors



THANK YOU

JOIN THE HEALTH TRANSFORMER MOVEMENT 16™ & © 2017 StartUp Health Holdings, Inc. All rights reserved.