Health 2.0 Quarterly Report (Q4 2016)

HEALTH 2.0 QUARTERLY REPORT :: Q4 2016

QUARTERLYREPORTS


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LEGISLATION 2.0

Digital health enjoyed the attention of national and state legislators in 2016.

Congress passed the 21st Century Cures Act, which shed more light on the FDA

regulation of software in healthcare. The Senate passed the ECHO bill, which

expands access to tele-consults for rural physicians, and the FDA is looking to

revisit its regulatory standards for software as a medical device (SaMD). And

forward-thinking Massachusetts just launched its State Digital Health Council.

NEUROTECH The last quarter of 2016 was unusually good for the brain. Google’s Verily released

Liftware Level, a smart spoon for consumers with hand tremors. GE and the NFL have

collaborated on a telemedicine initiative to help amateur footballers access advice

when they suffer a concussion. Houston-based BrainCheck raised $3M for a mobile

neurocognitive assessment app, while Savonix announced the launch of their own

assessment tool. In perhaps the most intriguing news, MobiHealthNews discovered in

their FDA scoop that Apple is developing an app to diagnose Parkinson’s disease.

SMART…FERTILITY?

Entrepreneurs are breaking in to the fertility market, and finding that it isn’t all

about women. Medical Electronics Systems released YO, an automated semen

analyzer that clips onto a smartphone (sanitizer not included). Berlin-based Clue

raised $20M for a period-tracking app, and Zurich’s Ava raised $9.7M for a fertility

tracking wearable. NYC-based Progyny launched their rebrand and new website

focused on helping would-be parents navigate their fertility benefits.

CARDIAC MONITORING

The heart, once the domain of lovers, is fast becoming the domain of SMACK

health. iRhythm, which creates wearable heart monitors, went public with a

$107M IPO. Nanowear received FDA clearance for an EKG monitor garment, and

Cardiogram raised $2M in a bid to detect arrythmias using the Apple Watch. JAMA

Cardiology published an article proclaiming the Apple Watch as the most accurate

wearable for heart rate monitoring.

Things We Care About, Q4 2016


1996 CONSUMER FACING

1030 PROFESSIONAL

FACING

392 PATIENT PROVIDER COMMUNICATION

494 DATA, ANALYTICS,

& EXCHANGE

3912 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: Total Companies By Category

HEALTH 2.0 SOURCE COMPANIES BY CATEGORY, DECEMBER 2016

HEALTH 2.0 SOURCE ticked up this quarter, adding 44 companies overall. The Consumer

Facing category added 25 firms, and the

Professional Facing category added one new addition. The Patient Provider Communication

category added 10 companies, while the Data,

Analytics, and Exchange category added 8.


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 17.5%, and emerging companies in Asia and the Middle

East 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

.1%

1.1%.8%

1.4%5.1%

17.5%74%


FUNDING FOR THE HEALTH 2.0 space in 2016 has surpassed every year for which we keep

data. Approximately $1.12B was invested from

October through December.

Funding Keeps Flowing

We predicted that funding would reach $5.5B this year, and indeed it has – shattering funding records for the digital health space. Entrepreneurs and investors, enticed by the opportunity to transform a giant industry, continue to flock to healthcare. We will see whether 2017 bucks the trend or sets another record.

HEALTH 2.0 ANNUAL FUNDING

2011

1.0 B 1.6 B 2.2 B

4.6 B 4.8 B

2012

5.6 B

2016

2013

2014 2015


2.4B CONSUMER FACING

884M DATA, ANALYTICS,

& EXCHANGE

453M PATIENT PROVIDER

COMMS

602M PROFESSIONAL

FACING

THE CONSUMER FACING category led in funding all year, with Data and Analytics contributing significant raises as

well. Prominent deals for new venture Iora ($75M) and

Crossover Health ($92M) contribute to 2016’s record funding totals.

Consumer Facing Funding STILL On Top

Two of the biggest deals this quarter:

*75M

2016 FUNDING BY CATEGORY AND QUARTER

Q2: 100M

Q1: 127M Q1: 312M

Q2: 248M

Q1: 120M

Q2: 105M

Q1: 1.14B

Q2: 1.3B

Q3: 128M

Q3: 226M

Q3: 140M

Q3: 793M

Q4: 88M *Q4: 246M

Q4: 98M *Q4: 597M

*92M


Hot Stuff: Top Funding Deals in Q4, 2016

CONSUMER FACING PROFESSIONAL FACING

PATIENT PROVIDER COMMUNICATION

DATA, ANALYTICS, & EXCHANGE

TOP FUNDING DEALS OF Q4 2016 The winter’s raises shine a spotlight on primary care, diabetes and cloud-based solutions . Iora Health ($75M), a direct primary care practice, and Patient Ping ($32M), a care coordination firm, are both Boston-based ventures in primary care. Q4’s biggest raise belongs to Crossover Health, which provides analytics-informed primary care to self-insured employers. Intuity Medical ($40M) offers an all-in-one glucose testing kit for diabetics, and Bigfoot Biomedical raised $36M for a smart insulin delivery system for diabetic patients. Denver-based health management firm Welltok raised $34M to build out its CafeWell offering, while payments platform InstaMed signed $50M. Tracelink ($52M) offers an interesting cloud solution to eliminate counterfeit drugs from the prescription pharmaceutical industry.

90M80M70M60M50M40M30M

THE TOP DEALS of Q4 2016 totaled to $426M and represent nearly 43% of total

funding this quarter.


0 2 4 6 8 10 12 14 16 18 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

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, DECEMBER 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


Health & Medicine

Health 2.0 Quarterly Report (Q4 2016)