Health 2.0 Quarterly Report (Q1 2016)

HEALTH 2.0 QUARTERLY REPORT :: Q1 2016

QUARTERLYREPORTS


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BUZZWORD OF THE DAY: INTEROPERABILITY With the demise of meaningful use, the ONC is looking for more effective ways of

incentivizing EHR interoperability. Will they succeed? HIMSS 2016 focused heavily

on the issue, which is critical to the success of value-based care. In a step forward,

Salesforce released Health Cloud, which notably pulls data from both EHRs and

wearables. KLAS also released rankings on interoperability and customer

satisfaction - Epic and InterSystems took high honors.

RISE OF BABY TECH Digital health is discovering what retailers have always known - people spend big on

their kids. CES debuted their first Baby Tech summit in January. Glow, a women’s health

startup, launched an infant tracking app called Glow Baby. San Diego-based Thrive

raised funds to launch a smart baby bottle. Retailers are working on it, too – toy giant

Mattel acquired baby wearable company Sproutling. Jessica Alba’s Honest Company

discreetly purchased parenting network Alt12, revealed in IPO filings last month.

MORE GOOD NEWS FOR TELEHEALTH Medicaid passed a final ruling this month that would allow reimbursement for

telehealth visits at the state level. Although the ruling has strings attached, this is

great news for the exploding telehealth industry. The Senate has also introduced

a bipartisan bill to increase reimbursement expansion and eliminate clunky

restrictions. Will this be the one bill that Congress agrees on?

SPOTLIGHT ON HEALTH DISPARITIES SMACK health solutions are focusing more on the most vulnerable patient

populations. Omada Health tweaked its Prevent program for low-literacy patients

living in food deserts. Babylon, which raised $25M this quarter, will use funds to

launch remote care visits in Rwanda. Call9 raised $10M to provide emergency care

consults for nursing home patients.

Things We Care About, Q1 2016

H


1900 CONSUMER FACING

1012 PROFESSIONAL

FACING

343 PATIENT PROVIDER COMMUNICATION

470 DATA, ANALYTICS,

& EXCHANGE

3725 ALL 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 50 companies overall. The Consumer

Facing category added 25 companies, and the

Data, Analytics, and Exchange category added 12 companies.

Health 2.0 Source: Total Companies By Category

HEALTH 2.0 SOURCE COMPANIES BY CATEGORY, MARCH 2016


.2%

.7%.6%

1%5%

17%75%

The lion’s share is still in North America, with 75% of digital health companies located there. However, a strong contingent belongs to

Europe with 17%, as emerging sectors in Asia, Latin America, MENA

and even Africa continue to expand.

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


FUNDING FOR THE HEALTH 2.0 space has started the new year strong. Approximately

$1.7B was invested from January through

March, almost doubling the $1B of investments made last quarter.

Funding Keeps Flowing

Funding for the first quarter has topped that of last year’s. Q1 of 2016 totaled $1.7B in deals compared to 2016’s $1.5B. These numbers portend another important growth year for digital health.

HEALTH 2.0 ANNUAL FUNDING

2011

1.0 B 1.6 B 2.2 B

4.6 B 4.8 B

2012

1.7 B

2016

2013

2014 2015


1.14B CONSUMER FACING

THE CONSUMER FACING category continued to lead in venture funding, boosted by huge deals inked for Oscar and

Flatiron Health. Firms focused on population health and data

analytics drove this quarter’s funding growth.

Consumer Facing Funding STILL On Top

127M PROFESSIONAL

FACING

200M PATIENT PROVIDER

COMMS

312M DATA, ANALYTICS,

& EXCHANGE

Two of the biggest deals this quarter:

*175M *400M

2016 FUNDING BY CATEGORY AND QUARTER


THE TOP DEALS of Q1 2016 totaled to $1.15B and represent nearly 70% of total

funding this quarter.

Hot Stuff: Top Funding Deals in Q1, 2016

CONSUMER FACING PROFESSIONAL FACING

PATIENT PROVIDER COMMUNICATION

DATA, ANALYTICS, & EXCHANGE

TOP FUNDING DEALS OF Q1 2016

SMACK health’s largest fundraises went to consumer-facing firms, but data companies demonstrated strong value. Health insurer unicorn Oscar raised $400M as it strategizes to enroll 1M members by 2021. Jawbone ($165M) raised significant funds, but in a rocky down round. Virtual therapy companies MindMaze ($100M) and Akili ($35M) look to improve cognitive impairments and gain FDA approval. Captricity ($35M) and Flatiron ($175M), both data analytics companies, raised large rounds as they eye an IPO in the near future.

400M 200M 100M 50M 30M

HEALTH 2.0 QUARTERLY REPORT :: Q1 2016 0 500 1000 1500 2000 2500

B2B-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 Testing

Clinical Trials Search & Recruitment

Gaming

Financial Management

Patient Communities

Search

Wellness

Content

Self-Management Tools & Trackers

This quarter, our team added hundreds of products across all categories to Source. Trackers continue to stay hot in digital health, but clinician workflow products are also diversifying rapidly. We expect 2016 to be a year of rich product releases as startups utilize their record-high funding from 2015 to wow us.

THIS GRAPH SHOWS the current break down of products tracked in Health 2.0 Source by

segment. The lighter color at the end of each

bar represents growth in that segment during Q1 2016.

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

CONSUMER FACING

PROFESSIONAL FACING

PATIENT PROVIDER COMMUNICATION

DATA, ANALYTICS, & EXCHANGE

TOTAL NUMBER OF PRODUCTS BY SEGMENT, HEALTH 2.0 SOURCE, JANUARY 2016


ABOUT HEALTH 2.0 MARKET INTEL Since 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 REPORT The 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


Data & Analytics

Health 2.0 Quarterly Report (Q1 2016)