Published: April 1, 2015

StartUp Health Insights TM

Digital Health Funding Rankings

Q1 2016

INCLUDING 50+ MARKET FUNDING SPONSORED BY

A StartUp Health InsightsTM Report 


Published April 1, 2016 | Report data through March 30, 2016
Report is inclusive of seed, venture, corporate venture and private equity funding
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© 2016 StartUp Health, LLC
 DEALS & FUNDING INVESTORS 50+ MARKET

2016 Q1 Summary
2015 was the year digital health funding hit its stride and 2016 is stepping it up a notch with a record-setting first quarter.
Signs continue to point to a market transitioning from something reminiscent of the Wild West to the early
stages of maturity.

2016 Starts Strong: With a record $1.8B in funding, Q1 2016 started with big numbers. 2016 already saw 4 deals over $100M,
1 as compared to 7 in all of 2015.

Big Data / Analytics No Longer a Buzzword: We’ve seen buzzwords come and go, but big data has become a household
name. As a robust ecosystem of startups begins to mature, we’re seeing data wranglers establish real ROI, both on the
2 clinical and financial realms, and receive the financing they need to grow. We expect to see the days of point solutions
disappear as more versatile data analytics companies begin to proliferate and gain significant market share.

Nuanced Investors: The most active investors in 2016 include institutional VCs, as well as a hospital system and a payor,
continuing the trend of previous years of a diverse investor base. Large organizations ramp up their investments and begin
3 placing bets as they increasingly look externally for innovation. With such a disruptive digital health landscape, looking
outside the walls of an institution is becoming an important strategy.

Drop in Deal Volume, Increase in Funding: We tracked approximately $600M and 600 deals in 2013 - ever since, funding has
swelled and deal volume has dropped. While there is still an extremely active Seed ecosystem, all signs point to venture
4 learning - learning what a successfully positioned digital health startup looks like, learning about competition dynamics,
about what solutions have business models that work and who can prove ROI. With that learning comes backing for more
mid-stage and late-stage deals.

New York Takes the Lead: New York overtook the San Francisco Bay Area in funding amount this quarter, in large part due
5 to Oscar’s $400M funding. Los Angeles, Salt Lake City and Chicago are also great examples of new bustling health tech hubs
that 5 years ago were not on the map.

Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through March 30, 2016. © 2016 StartUp Health LLC 2
 DEALS & FUNDING INVESTORS 50+ MARKET

Digital Health Funding Snapshot Year Over Year (2016 YTD)

2016 starts off with a record setting $1.8B quarter. While 22% of that funding was directed to the insurance upstart, Oscar
Health, the remaining funding was distributed in increasingly mature rounds.

617
561
490
465
$8

$6 280
Funding ($B)

150
$4 100

$2

$194M $389M $553M $618M $1.7B $1.1B $1.8B

2010 2011 2012 2013 2014 2015 2016YTD

Q1 Q2 Q3 Q4 Q1 Deal Count
Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through March 30, 2016. © 2016 StartUp Health LLC 3
 DEALS & FUNDING INVESTORS 50+ MARKET

Digital Health Funding Snapshot Month Over Month

As the market continues to progress, monthly ups and downs have begun to trend at $700M/month.

$320M Series B
$1,250,000,000
$1.25B $400M Series C
R² = 0.5582

$101M Series B
$1,000,000,000
$500M Series C
$1.00B $400M Venture

$750,000,000 $150M Series C $31M Series A

$0.75B
$37.9M Venture $33M Series B

$500,000,000

$37.5M Venture
$0.50B

$250,000,000

$394M Venture
$0.25B
$230M Series B
R2 = 0.5582
$0

2010 2011 2012 2013 2014 2015 2016YTD

Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through March 30, 2016. © 2016 StartUp Health LLC 4
 DEALS & FUNDING INVESTORS 50+ MARKET

Digital Health Funding Snapshot Month Over Month

Over the past three years, some months repetitively correlate to dips and peaks. Starting in 2014, we have seen an
emerging trend in venture funding, indicating a rhythm to the digital health investment landscape at large.

$1.25B
$1,250,000,000

$1.00B
$1,000,000,000

$0.75B
$750,000,000

$500,000,000
$0.50B

$250,000,000
$0.25B

$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2013 2014 2015 2016

Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through March 30, 2016. © 2016 StartUp Health LLC 5
 DEALS & FUNDING INVESTORS 50+ MARKET

The Top 10 Most Active Markets of 2016

Big data / analytics is the most active market, partially due to Flatiron’s $175M raise, increasing 42% over Q1 2015. Average
deal sizes fluctuate substantially based on the market.

Market Total Raised YTD Deal Count Average Deal Size

1 Big Data / Analytics $286M 8 $35.7M

2 Medical Device $198M 11 $17.9M

3 Patient / Consumer Experience $195M 20 $9.8M

4 Personalized Health / Quantified-Self $162M 11 $14.7M

5 Wellness $141M 8 $17.7M

6 Workflow $132M 17 $7.8M

7 Clinical Decision Support $109M 8 $13.6M

8 E-commerce* $102M 5 $16.9M

9 Population Health $26M 5 $5.2M

10 50Plus $6M 2 $2.9M

*Excludes outliers: $400M Oscar
Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through March 30, 2016. © 2016 StartUp Health LLC 6
 DEALS & FUNDING INVESTORS 50+ MARKET

The Top 10 Largest Deals of 2016 (YTD)

With 4 deals over the $100M mark, as compared to 7 in all of 2015, companies that are proving their models are attracting
investors willing to invest heavily on larger rounds.

Company $ Invested Subsector Notable Investor

1 $400M E-Commerce

2 $175M Big Data / Analytics

3 $100M Personalized Health

3 $100M Behavioral and Mental Health

5 $95M Patient / Consumer Experience

6 $70M Big Data / Analytics

7 $45M Wellness

8 $40M Patient / Consumer Experience Undisclosed

9 $35M Workflow

9 $35M Clinical Decision Support

9 $35M Wellness

Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through March 30, 2016. © 2016 StartUp Health LLC 7
 DEALS & FUNDING INVESTORS 50+ MARKET

Deal Size Ranges & Medians by Stage for 2016 (YTD)

Early-stage deals grew in size, increasing from $3.1M in 2015 to $3.9M in 2016. This 26% increase is a strong signal
investors are continuing to support the wave of emerging health innovation.

$45M
$11M $100M

$22M
$3.1M $45M

$3.9M
$120K $34M

$0 $100M

Early-stage (Seed + Series A) Mid-stage (Series B + Series C) Late-stage (Series D+)

*Excludes outliers: $400M Oscar
Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through March 30, 2016. © 2016 StartUp Health LLC 8
 DEALS & FUNDING INVESTORS 50+ MARKET

Deal Activity by Stage for 2016 (YTD)

The Series A segment has increased from 35% in 2015 to 41% in 2016, representing the largest Series A volume as a
percent of total deal counts to date.

Deal Count*

2010 123

2011 232

2012 305

2013 443

2014 378

2015 279

2016 32% 41% 11% 10% 5% 63 (YTD)

0% 25% 50% 75% 100%

Seed Series A Series B Series C Series D Series E Series F + G

Deal count only includes Seed though Series G rounds
Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through March 30, 2016. © 2016 StartUp Health LLC 9
 DEALS & FUNDING INVESTORS 50+ MARKET

The Top 10 Most Active US Metro Areas of 2016 (YTD)

Innovation hubs around the country continue to be active. New York takes #1 for the first time, mostly due to Oscar
Health’s $400M raise.

Metro Area

1 New York City Boston

Minneapolis (6 Deals)
(3 Deals)
2 San Francisco $79M
Salt Lake City $21MM
SF Bay (1 Deal)
3 Boston (23 Deals)
$70M
4 Salt Lake City $525M
$58M
5 Chicago
Chicago $656M
6 Los Angeles Plano (5 Deals)
Los Angeles New York City
(2 Deals) (2 Deals) (11 Deals)
7 Dallas San Diego $22M
$40M (5 Deals)
8 San Diego Dallas
$23M (3 Deals)
9 Plano
$25M
10 Minneapolis

Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through March 30, 2016. © 2016 StartUp Health LLC 10
 DEALS & FUNDING INVESTORS 50+ MARKET

The Top Investors of Q1 2016

Q1 2016 has seen some of last year’s top investors maintain their high frequency investment habits, but we’ve also seen new
players enter the scene in the first few months of the year.

Organization 2016 YTD Deals 2015 Deals Stage

Early Mid Late

1 4 9
1 4 -
1 4 2
2 3 5
2 3 10
2 3 -
2 3 6
2 3 6
2 3 1
2 3 -
Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through March 30, 2016. © 2016 StartUp Health LLC 11
 DEALS & FUNDING INVESTORS 50+ MARKET

Investor Volume of Q1 2016

So far in 2016, more than 200 investors have deployed capital in digital health, with more than 29 organizations investing
in 2 or more deals in Q1 already.

200
178

150
Investor Count

100

50
21
8
0
2016

# of Deals by Investor 1 2 3+

Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through March 30, 2016. © 2016 StartUp Health LLC 12
 DEALS & FUNDING INVESTORS 50+ MARKET

The 50+ Digital Health Investment Landscape

As the overall digital health industry continues to expand, startups serving 50+ consumers - either directly or through
providers, payors and other healthcare stakeholders - are increasingly attracting investment.
This report spotlights two categories of startups: 50+ relevant companies and 50+ focused companies.
Companies in both categories align with at least one of AARP’s 9 areas of opportunity:

The 50+ relevant category includes companies, both

Vital Sign
Monitoring B2C and B2B2C, with products or services that could be
Aging With Emergency Detection
used by 50+ consumers. This excludes practice
Vitality and Response management solutions, compliance software, lab
support tools and other enterprise systems that do not
have a consumer touchpoint, as well as companies
specifically targeting other demographics like children
Medical Care and young families.
Management Navigation

The 50+ focused category includes B2C companies

that specifically target 50+ consumers and B2B2C
Behavioral and Physical companies that provide products and services to
Emotional Health Fitness payors, providers and others that serve 50+
consumers.

Social Diet and

Engagement Nutrition

Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through March 30, 2016. © 2016 StartUp Health LLC
13
 DEALS & FUNDING INVESTORS 50+ MARKET

Total Deals Since 2010 of AARP’s 9 Areas of Opportunity

85 deals

90 deals 48 deals

Vital Sign
Monitoring

Aging With Emergency Detection

Vitality and Response

111 deals 201 deals

Medical Care
Management Navigation

114 deals
Behavioral and Physical
Emotional Health Fitness 189 deals

Social Diet and

Engagement Nutrition

169 deals 74 deals

Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through March 30, 2016. © 2016 StartUp Health LLC
14
 DEALS & FUNDING INVESTORS 50+ MARKET

50+ Market Investments as % of Total Investments in Digital Health

The graph below looks at companies that fit the 50+ relevant definition as a percentage of the total investment landscape.
Investors in 2016 have continued to focus approximately half of their funds and half of their deals on 50+ relevant
companies.

70%

65%
63%

60% 60%

55%
54% 54%
53%
51% 52% 51%
50% 49% 49%
48%
46% 46%
45% 45%

40%
2010 2011 2012 2013 2014 2015 2016YTD

Deals Funding

Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through March 30, 2016. © 2016 StartUp Health LLC 15
 DEALS & FUNDING INVESTORS 50+ MARKET

The Top 50+ Market Investors of 2016 YTD

Investors around the globe are funding companies that address the needs of 50+ consumers at all stages, with notable
involvement from corporate and strategic investors.

Firm 2015 YTD Deals Notable Deal Stage

Early Mid Late

1 2

1 2

1 2

1 2

1 2

1 2

1 2

Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through March 30, 2016. © 2016 StartUp Health LLC 16
 Our Methodologies
Sectors:
• We have a broad view of digital health and believe that the current trend is a cross-pollination of technology and data with all aspects of health and
healthcare. StartUp Health InsightsTM tracks companies that enable health, wellness and the delivery of care through data / analytics, sensors,
mobile, internet-of-things, 3D printing and genomics and personalized medicine.
• StartUp Health tracks companies based on their markets, subsectors and specialties. Investments in subsectors and specialties are not mutually
exclusive, as deals are tagged with multiple subsectors and specialties based on the company’s focus.
• Q2 of 2015 brought with it an extensive database quality assessment. A new system was implemented allowing StartUp Health to track innovation
with enhanced granularity. Additionally, gaps in funding data were researched and added into our database enabling us to identify fundings
previously unaccounted for in previous reports.

Stage of Funding:
• StartUp Health InsightsTM records only publicly available data on cash for equity investments as the cash is actually received by the company.
StartUp Health InsightsTM is inclusive of seed, venture, corporate venture and private equity funding.
• Early stage: The company has raised a Seed or Series A round
• Mid stage: The company has raised a Series B or Series C round
• Late stage: The company has raised a Series D or other growth equity round
• StartUp Health also tracks incubator rounds and other financings into privately-held entities (e.g. “unnamed” venture rounds, strategic investments,
growth equity and private equity).
• In tabulating deal activity by stage we excluded rounds not clearly associated with a specific stage.

Sources:
• Funding data is from StartUp Health InsightsTM, the most comprehensive funding database for digital health, and managed by the StartUp Health
team. Information, data and figures represent only publicly available data.
• Data for acquisitions slide was provided by a range of sources including StartUp Health InsightsTM, CrunchBase, AngelList and news reports.
• StartUp Health works to ensure that the information contained in the StartUp Health InsightsTM Report has been obtained from reliable sources.
However, StartUp Health cannot warrant the ultimate validity of the data obtained in this manner. All data is subject to verification with the venture
capital firms and/or the investee companies. Results are updated periodically. Therefore, all data is subject to change at any time.
• If you find an error please let us know so we can correct it.

This report is provided for informational purposes and was prepared in good faith on the basis of public information available at the time of publication without independent
verification. StartUp Health does not guarantee or warrant the reliability or completeness of the data nor its usefulness in achieving any particular purposes. StartUp Health 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 StartUp Health.

Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through March 30, 2016. © 2016 StartUp Health LLC 17
About StartUp Health
StartUp Health is a global health innovation company. The StartUp Health Platform, including its Academy, Network and
Innovation Fund, is empowering a global network of entrepreneurs and innovators to transform health. StartUp Health
has the world’s largest portfolio of digital health companies, at more than 135, from 12 countries and 50 cities. 



StartUp Health was founded in 2011 by Steven Krein and Unity Stoakes and is chaired by former Time Warner CEO, Jerry
Levin. StartUp Health’s notable strategic partners and investors include AARP, AON, Aurora Health Care, California
Healthcare Foundation, Steve Case, Cleveland Clinic, Conifer Health Solutions, Mark Cuban, Esther Dyson, Roger
Ehrenberg, Brad Feld, GE Ventures, Kaiser Permanente Ventures, Robert Wood Johnson Foundation, SeventySix Capital
and Stericycle.

Learn more at startuphealth.com and follow @startuphealth. For press inquiries, email press@startuphealth.com

StartUp Health InsightsTM Contributors : Troy Bannister, Polina Hanin, Jennifer Hankin, Nicole Kinsey, Tara Salamone

Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through March 30, 2016. © 2016 StartUp Health LLC 18
StartUp Health Companies

Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through March 30, 2016. © 2016 StartUp Health LLC