Health 2.0 Quarterly Report (Q4 2015)

HEALTH 2.0 QUARTERLY REPORT :: Q4 2015

QUARTERLYREPORTS


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HOUSE CALLS HEAT UP Q4 saw a flurry of news on house call ventures, a model lost since the 60s. SF-based

Circle Medical ($2.9M) and Dallas-based Pediaq ($1.2M) seek to prove that home

care can be both consumer-centric and profitable. Perhaps most importantly Heal

announced 3rd party payment from Anthem Blue Cross & Google (as employer),

and NY-based Pager partnered with Walgreens to integrate its services into their

mobile health offerings.

FDA-APPROVAL WANTED After the recent tribulations of Theranos, the value of FDA approval for public trust

has never been clearer. More firms are focusing on regulated products - including

Apple, whose CEO hinted that it may join in soon. Philosys received clearance for its

glucometer app named Gmate Smart, and Gi Logic also cleared its noninvasive

monitor, Ab Stat. The FDA is adding three senior scientists to focus on the coming

onslaught of product evaluations.

CREATIVE PARTNERSHIPSMore unlikely players are forging partnerships to enter the space. Uber named

its first health advisor this quarter - John Brownstein of Boston Children’s

Hospital. PBS Kids teamed with Moff to launch an app that encourages active

play for kids. Samsung and Medtronic expanded their alliance to develop digital

apps for neuromodulation therapies.

HOSPITALS JUMP ON INNOVATION BANDWAGONCedars-Sinai teamed up with famed accelerator Techstars to launch their first

health care incubator in 2016. Healthbox announced its next class of startups with

Intermountain Healthcare. Boston Children’s Hospital announced partnerships

with Rock Health and Ascension is cosponsoring a contest at SXSW conference. All

signs of activity beyond the core EMR.

Things We Care About, Q4 2015


1875CONSUMER FACING

1000PROFESSIONAL

FACING

342PATIENT PROVIDER COMMUNICATION

458DATA, ANALYTICS,

& EXCHANGE

3675ALL 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 35 companies overall. The Consumer Facing category added 18 companies, and the

Data, Analytics, and Exchange category added

17 companies.

Health 2.0 Source: Total Companies By Category

HEALTH 2.0 SOURCE COMPANIES BY CATEGORY, DECEMBER 2015


The lion’s share is still in North America, with 66% of digital health

companies located there. However, a strong contingent belongs to Europe with 19%, 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


2011

1.0 B 1.6 B 2.2 B

4.6 B 4.8 B

20122013

2014 2015

FUNDING FOR THE HEALTH 2.0 space picked

up in the 4th quarter. Approximately $1B was invested from October through December,

while year to date funding tops $4.75B, a little

over 2014’s record high.

Funding Keeps Flowing

Funding for the year just topped last year’s totals, making 2015 another phenomenal year for health tech. We’ve witnessed the industry blossom and the funding proves that digital solutions are reshaping the future of healthcare.

HEALTH 2.0 ANNUAL FUNDING

Q3 to Q4 jumps 1B


2.96BCONSUMER FACING

THE CONSUMER FACING category continued to lead in

venture funding, boosted by huge deals inked for Collective Health and Peloton. Growth drivers include many firms

aimed at improving population health.

Consumer Facing Funding STILL On Top

847MPROFESSIONAL

FACING

412MPATIENT PROVIDER

COMMS

556MDATA, ANALYTICS,

& EXCHANGE

Q2: 297M

Q1: 163MQ1: 231M

Q2: 76M

Q1: 102M

Q2: 102M

Q1: 166M

Q2: 1.05B

Two of the biggest deals this quarter:

*75M*81M

2015 FUNDING BY CATEGORY AND QUARTER

Q4: 194M

Q3: 137M

Q4: 112M

Q3: 1.2B

Q3: 191M

Q4: 112M

Q3: 96M

*Q4: 640M


THE TOP DEALS of Q4 2015 totaled to

$476M and represent 45% of total funding this quarter. Another 65 deals

round out the remaining $581M for an

average raise of $14.1M.

Hot Stuff: Top Funding Deals in Q4, 2015

CONSUMER FACING PROFESSIONAL FACING

PATIENT PROVIDER COMMUNICATION

DATA, ANALYTICS, & EXCHANGE

TOP FUNDING DEALS OF Q4 2015

Eight of the top ten deals are in the consumer-facing arena. Several big raises are in the fitness and health insurance realms. Peloton’s ($75M) exercise bikes that stream fitness classes and Athos’ ($35.5M) tech-enabled workout gear both hack lucrative athletic markets. Collective Health’s ($81M) and Clover Health’s ($35M) respectable rounds are a nod to the needed disruption in employer-based health insurance. Lyra Health ($35M) also hopes to address payers and providers with its comprehensive mental health offering.

80M

70M

60M

50M

40M

30M

HEALTH 2.0 QUARTERLY REPORT :: Q4 20150 100 200 300 400 500 600 700 800 900 1000

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

Although product additions slowed down during this quarter, trackers and personal health assessments made the substantial additions this year, just in time for the holiday gift-giving season. Santa Claus wants you to purchase a wearable.

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

Q4 2015.

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, DECEMBER 2015


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
