Galen Growth Asia HealthTech Investment Landscape H1 2017

HEALTHTECH INVESTMENT LANDSCAPE

INVESTMENT TRENDS

Key findings

Asia

China focus

Rest of Asia focus

ASIA

H1 2017

It is with great pleasure that we share with you our inaugural Asia HealthTech investment landscape report which we hope you will find helpful.

This marks a significant milestone for the Galen Growth Asia team which has diligently been building and curating the Asia HealthTech database so as to be able to create a better understanding of the vibrancy of the ecosystem in the region.

The Galen Growth Asia Analytics is a new value proposition with the goal to provide the ecosystem stakeholders with the appropriate and necessaryinsights to make informed business decisions.

We will also be launching an online version of our Galen Growth Asia Analytics tool in November 2017 at our first-of-it's-kind HealthTech Investor Summit in Singapore.

We would love to hear your opinion of the report, your ideas to improve it or simply to share with us Asia HealthTech deal or transaction information. Please contact us at: [email protected]

JULIEN DE SALABERRY

galen growth asia

Co-founder, Managing director

1©2017 by Galen Growth Asia - All rights reserved.

ABOUT US

In partnership with corporations, government organizations, startups and

key stakeholder groups, Galen Growth Asia is building an integrated

innovation network focused on HealthTech startups to innovate, disrupt

and solve our healthcare systems pain points.

Galen Growth Asia believes that HealthTech will play a central role in

addressing health system inefficiencies in an effective and efficient

manner and thus significantly improving the standard of healthcare in Asia.

Through our focus on enabling both social value and investing

opportunities, we mobilize thought leaders in healthcare and technology,

support innovators in HealthTech to inform their solutions and business

models, and provide valuable insights for business development and

investment opportunities.

ASIA'S HEALTHTECH CONNECTOR

galen growth asia2©2017 by Galen Growth Asia - All rights reserved.

ABOUT GALEN GROWTH ASIA HEALTHTECH DATABASE

The Galen Growth Asia database is the only

comprehensive HealthTech database which

captures information about the growing Asia

startup HealthTech ecosystem.

The database captures numerous relevant data

points for each startup including funding and

performance information.

The full database and its analytics will be available

to the public in Q4 2017. Subscribe via our website

to receive further information.

THE ONLY DATABASE DEDICATED TO ASIA HEALTHTECH

galen growth asia

3000+ VENTURES

3000+ STARTUPS


IN 2016 AND 2017, ASIA HEALTHTECH HAS RAISED

MORE THAN

$3.8 BILLIONACROSS

240 DEALS

KEY FINDINGS

MORE DEALS THAN EVER

HEALTHTECH MATURES IN 2017

ASIA HEALTHTECH UNDISCLOSED

CHINA IS IN POLE POSITION

SERIES B STABLE WHILE SERIES A LOSE MOMEMTUM

FIVE HUBS ABOVE ALL

With 127 deals this year to June 2017, the first half of 2017 counted more deals in Asia HealthTech than any of the precedent years . We project that by year end more than 270 deals will be closed, which is a 300% increase on 2016.

2016 and 2017 saw a slow down in the number of new HealthTech startups incorporated whilst startups founded in 2014 and 2015 are raising greater rounds of funding as they scale.

Amongst the 127 deals counted in H1 2017, more than 20% remain undisclosed. While 80% of these undisclosed deals were early stage investments, 20% were Series A investments or higher.

In China, more money is being invested than in any other country in Asia. The top 5 deals in China represent 30% of the total investment in HealhTech in Asia. China also represents 50% of all investments in Asia.

Since Q3 2016, Series A stage investments continue to lose share QoQ, with Series B share growing from 8% in Q3 2016 to 18% in Q2 2017.

India, China, Singapore, Indonesia and Australia combined are home to 80% of all HealthTech startups in Asia.


THE ASIA HEALTECH REPORT

Is an analysis of

HealthTech investments

from over 21 countries in Asia

galen growth asia

3000+ VENTURES

FRONTIER MARKET

DEVELOPING MARKET

MATURE MARKET

1) Bangladesh 2) Bhutan 3) Cambodia 4) Laos 5) Myanmar 6) Nepal

1) China 2) India 3) Indonesia 4) Malaysia 5) Philippines 6) Sri Lanka 7) Thailand 8) Vietnam

1) Australia 2) South Korea3) Hong Kong 4) Japan 5) New Zealand 6) Singapore 7) Brunei


ASIA INVESTMENT

TRENDS

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3000+

ASIA HEALTHTECH KEY MARKETS

With 36 %, India is home to more HealthTech

startups than any other Asia country

Despite its size, Singapore is host to 12% of

Asia HealthTech startups driven by its ongoing

investments in tech innovation and its very

favorable economic and legal climate

Rest of Asia, combined, which includes

mature, developing, and frontier markets,

share 20% of the Asia HealthTech ecosystem

demonstrating the lack of an environment

condusive for HealthTech startups to grow

NUMBER OF HEALTHTECH

STARTUPS IN %


galen growth asia

3000+

ASIA HEALTHTECH KEY CATEGORIES

*Not depicted are categories with a share of <4%


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3000+

H1 2017 ASIA HEALTHTECH INVESTMENTS

SHARE BY COUNTRY

With 79% of all deals closed by value and 87%

of the total volume invested in H1 2017, China

and India recorded the majority of HealhTech

deals in Asia

Developed countries, Singapore, Australia,

South Korea and Japan, represent 17% of all

deals but only 13% of the total value invested

Though counting 37% fewer deals than in

Singapore, Australia’s total value invested was

42% higher


galen growth asia

ASIA HEALTHTECH FUNDING HISTORY

2016-2017

2017 HealthTech funding is on track

to exceed 2016

Through H1 2017, more than $1.2B has been

invested in 127 deals at a stable QoQ deal flow

rate

In comparison, H1 2017 saw more deals closed

than 2016 , however at a smaller deal value

At current pace, deal volume will grow by

151%, while value will close 7% ahead of 2016

totals

The higher deal count signals a vibrant Asia

HealthTech ecosystem


galen growth asia

3000+

QOQ ASIA HEALTHTECH FUNDING HISTORY

2016-2017

Deal volume accelerates while funding by

value weakens

On a quarterly basis, deal volume increased

by more than 200% between Q4 2016 and Q1

2017 and stabilized in Q2 2017

Funding by value in H1 2017 closed 20%

weaker year on year

A notable outlier deal in May 2016 was Ping

An’s $500M Series A investment in Good

Doctor

Most notable deal in H1 2017 is the $200M

Series D by Hao Daifu from Tencent Holdings


galen growth asia

3000+

QOQ ASIA HEALTHTECH FUNDING DEAL SHARE BY STAGE

Q1 2016-Q2 2017

Seed stage deals level off while Series A

looses momentum

The volume of early stage deals maintains a

constant share exceeding 40% of all deals

The number of Series A stage deals slowed

while Series B deals reached an all-time high

*Early stage deals include Angel & Seed deals


galen growth asia

ASIA HEALTHTECH DEAL SIZE RANGES AND MEDIAN

H1 2016-H2 2017

2016 deal size exhuberance showing signs of

sobriety in 2017

Early and growth stage median deal size

stable for the last six quarters

Median deal size is expected to increase in

line with Series B and beyond stages growing

in value


CHINA INVESTMENT

TRENDS

galen growth asia

3000+

QOQ CHINA HEALTHTECH FUNDING HISTORY

Investments continue to strengthen in 2017

Despite weakening in Q2 2017, investments by

value in China remain strong

Q2 2016 significantly exceeds Q2 2017 driven

by one outlier deal namely the Good

Doctor $500M Series A

Deal count has increased by more than 60% in

H1 2017 compared to H1 2016


galen growth asia

3000+

QOQ CHINA HEALTHTECH FUNDING DEAL SHARE BY STAGE

Q1 2016-Q2 2017

Growth stage funding remains strong in 2017

Venture funding by value for Series B rounds

and above increases to 40% in total for Q2 2017,

up from 33% and 25% in the preceding two

quarters

Series A and Series B stages remain the most

prominent venture rounds for the third

consecutive quarter


galen growth asia

3000+

H1 TOP 5 CHINA HEALTHTECH DEALS


REST OF ASIA

INVESTMENT

TRENDS

(excluding China)

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3000+

QOQ REST OF ASIA HEALTHTECH FUNDING HISTORY

Investment by value experienced strong

growth

Funding in H1 2017 rockets, growing by 450%

year on year when compared to H1 2016

Deal volume grew to an all-time high of 38

investments in Q2 2017, a threefold increase

on Q2 2016


galen growth asia

3000+

QOQ REST OF ASIA HEALTHTECH FUNDING DEAL SHARE BY STAGE

Q1 2016-Q2 2017

Rest of Asia investments begin to mature

with HealthTech startups continuing to raise

early stage funding, stabilizing the share in

excess of 60% since Q2 2016

2017 already recorded more growth and late

stage funding rounds than 2016 in total,

indicating that rest of Asia is starting to mature

Early state funding rounds continue to

represented the lion share of investments

made


galen growth asia

3000+

H1 2017 TOP 5 REST OF ASIA HEALTHTECH DEALS


METHODOLOGY

WHAT WE DEFINE AS HEALTHTECH

WHAT WE TRACK IN OUR REPORT

HealthTech defines the intersection between healthcare and technology and is also referred as digital health. HealthTech does not include Biotech, such as protein research or pharmaceuticals, and also does not include MedTech, such as devices that are implented into the body.

Galen Growth Asia tracks venture funding amongst other key data for HealthTech startups in Asia. Countries that are included are (in alphabetical order)Australia/New Zealand, Bangladesh, Bhutan, Brunei, Cambodia, China (mainland), Hong Kong, India, Indonesia, Japan, Laos, Malaysia, Myanmar, Nepal, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, and Vietnam.

HOW DO WE TRACK FUNDING

WHERE WE GET OUR INFORMATION

FROM

LEXICON

Galen Growth Asia is tracking all undisclosed and disclosed rounds in Asia, including early-stage funding.

Funding data includes, different types of venture funding events and acquisition transactions. The funding data is based on startup direct reporting, publicly available resources, such as press releases, and news.

YoY: Year on year HoH: Half-year on half-year QoQ: Quarter on quarter

23

This report is provided for informational purposes and was prepared in good faithon the basis of public information available at the time of publication without independentverification.

Galen Growth Asia does not guarantee or warrant the reliability or completeness of the data nor its usefulness in achieving any particular purposes.

Galen Growth Asia shall not be liable for any loss, damage, cost or expense incurred by reason of any persons use or reliance on this report. This report is a proprietary aggregation of publicly available data and shall not be forwarded or reproduced without the written consent of Galen Growth Asia

IMPORTANT INFORMATION

©2017 by Galen Growth Asia - All rights reserved.

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Thank youWe hope you liked this report and that our HealthTech passion has

contaminated you :)

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Contact Galen Growth Asia: ResearchManager Dario Heymann [email protected]

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@GalenGrowthAsia

www.galengrowth.asia

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Galen Growth Asia HealthTech Investment Landscape H1 2017