Health 2.0 Quarterly Report (Q2 2016)

HEALTH 2.0 QUARTERLY REPORT :: Q2 2016

QUARTERLYREPORTS


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REGULATORY HICCUPSHealth tech is still finding its footing with regulators. Zenefits devalued itself from

$4.5B to $2B after it violated state laws by selling health insurance with unlicensed

brokers. The FDA declined to approve Proteus’ sensor technology in anti-psychotic

pills, asking for more testing. In South Carolina, special interests blocked use of eye

exam kiosks and self-exams, causing eye startup Opternative to cease operations

in the state. On a better note, Texas is working to improve its telehealth laws.

META DATAAs more digital health companies emerge, a need to effectively sift through all of them

does also. Evidation Health ($11.6M), a joint venture of Stanford and GE Ventures, will

study the efficacy of health tech solutions through research. Ranked Health, an app

curation solution out from nonprofit Hacking Medicine, offers professional reviews of

other health apps. Jiff ($17.7M) aggregates all employer-purchased digital health tools

in its own app so that employees can access the solutions more easily.

BEHAVIORAL HEALTHMental health continues to be an area of hot interest for health tech. Affectiva,

an emotion analytics platform, raised $14M this quarter. Teletherapy company

TalkSpace another $15M to expand its primarily text-based services. Constant

Therapy, a firm that uses big data to target digital brain exercises to stroke

patients, released promising data from its app and added 3 scientific advisors.

BIG MOVES Corporate giants continue laying hands in SMACK health, and this quarter was no

different. Medtronic and Qualcomm are joining forces on a new continuous

glucose monitoring system. Apple released CareKit, an open source framework

for developers to design health tech applications. Nokia acquired medical

product company Withings for $200M.

Things We Care About, Q2 2016


1925CONSUMER FACING

1019PROFESSIONAL

FACING

361PATIENT PROVIDER COMMUNICATION

480DATA, ANALYTICS,

& EXCHANGE

3785ALL 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 60 companies overall. The Consumer Facing category added 25 companies, and the

Professional Facing category added 7 companies.

The Patient Provider Communication category

added 18 firms, while the Data, Analytics, and Exchange category added 10.

Health 2.0 Source: Total Companies By Category

HEALTH 2.0 SOURCE COMPANIES BY CATEGORY, JUNE 2016


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

.2%

.7%.6%

1.4%4.9%

17.4%75.1%


2011

1.0 B 1.6 B 2.2 B

4.6 B 4.8 B

2012

3.5 B

2016

2013

2014 2015

FUNDING FOR THE HEALTH 2.0 space is still

on pace to equal or top last year’s funding. Approximately $1.78B was invested from April

through July.

Funding Keeps Flowing

Funding for the second quarter has bested all of our estimates. Q2 of 2016 totaled a whopping $1.78B in deals, more money than we saw in 2012 for the entire year, and $500M of that came from just one deal. Digital health companies are attracting record interest, and it seems a funding slowdown is nowhere in sight.

HEALTH 2.0 ANNUAL FUNDING


2.4BCONSUMER FACING

THE CONSUMER FACING category continued to drive

venture funding. Behemoth international deals for Ping An Good Doctor ($500M) and Chunyu Yisheng ($183M)

impacted this quarter’s funding tallies dramatically.

Consumer Facing Funding STILL On Top

227MPROFESSIONAL

FACING

225MPATIENT PROVIDER COMMUNICATION

560MDATA, ANALYTICS,

& EXCHANGE

Two of the biggest deals this quarter:

*183M* 500M

2016 FUNDING BY CATEGORY AND QUARTER

*Q2: 100M

Q1: 127M Q1: 312M

Q2: 248M

Q1: 120M

Q2: 105M

Q1: 1.14B

*Q2: 1.3B


THE TOP DEALS of Q2 2016 totaled to

$1.05B and represent nearly 68% of total funding this quarter.

Hot Stuff: Top Funding Deals in Q2, 2016

CONSUMER FACING PROFESSIONAL FACING

PATIENT PROVIDER COMMUNICATION

DATA, ANALYTICS, & EXCHANGE

TOP FUNDING DEALS OF Q2 2016

This quarter highlights massive deals – our top 3 represent 43% of all funding – and the promise of Chinese healthcare. Ping An ($500M) and Chunyu Yisheng ($183M) are both medical consultation apps, while Codoon ($50M) offers wellness products to Chinese consumers. Clearly, there is a huge healthcare market in a country with a billion people . Stateside, Bright Health ($80M), led by a former United Healthcare CEO, looks to enter the health insurance marketplace with a model to rival Oscar’s. EarlySense($25M) produces continuous monitoring devices for patients. Anomali ($30M), though not solely a SMACK health firm, focuses on data compromise detection that is essential for HIPAA compliance.

500M

200M

100M

50M

25M


0 5 10 15 20 25 30 35 40 45 50B2B-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, consumer products across the board and in data management solutions. 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, JUNE 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 (Q2 2016)