StartUp Health Insights Global Digital Health Funding Report Q1 2018

© 2018 StartUp Health, LLC
STARTUP HEALTH INSIGHTS
Global Digital Health Funding Report
 
Data from January 1, 2018 - March 31, 2018
Report is inclusive of publicly available seed, venture, corporate venture, and private equity funding.
Sign up to receive weekly funding insights at startuphealth.com/insider.
2018 Q1
TM

ABOUT STARTUP HEALTH
Pages Topic
3 ………………………………………….…… Health Moonshots
4 ………………………………………….…… Q1 2018 Summary
5-8 ………………………………………….…… Deals and Funding
9-16 ………………………………………….…… New Methodology & Funding
17-18 ………………………………………….…… Geography
19 ………………………………………….…… Investors
20-23 ………………………………………….…… Health Transformers
24 ………………………………………….…… Methodology
In 2011, StartUp Health introduced a new model for
transforming health by organizing, supporting, and
investing in a global army of entrepreneurs called Health
Transformers. With the world’s largest digital health
portfolio (225+ companies spanning six continents, 20
countries, and 70+ cities), StartUp Health is mobilizing
this rapidly growing army along with the world’s ‘batteries
included’ leaders, innovators, and investors to achieve
10 Health Moonshots, with a 25-year mission to improve
the health and wellbeing of everyone in the world.
Learn more about how to join the movement and support
Health Transformers at startuphealth.com.
StartUp Health Insights TM Contributors
2
Jennifer
Hankin
Mark
Liber
Anne
Dordai
Nicole
Kinsey
Tara
Salamone
Polina
Hanin
Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 3/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2018 StartUp Health LLC

1
Access to Care Moonshot
Delivering quality care to everyone, regardless
of location or income
2
Cost to Zero Moonshot
Radically reducing the cost of care by a factor
of a million
3
Cure Disease Moonshot
Curing disease using data, technologies and
personalized medicine
4
End Cancer Moonshot
Ending cancer as we know it
5
Women’s Health Moonshot
Prioritizing women’s health, including
preventive care and new research
6
Children’s Health Moonshot
Ensuring every child has access to quality care,
particularly in underserved areas
7
Nutrition & Fitness Moonshot
Providing access to a healthy environment and
support an active lifestyle
8
Brain Health Moonshot
Unlocking the mysteries of the brain to
improve health, wellness, and mental health
9
Mental Health & Happiness Moonshot
Connecting mind, body and spirit in the pursuit
of happiness
10
Longevity Moonshot
Adding 50 healthy years to every human life
ON A MISSION TO ACHIEVE 10 HEALTH MOONSHOTS
The power of health moonshot thinking is bringing a new generation of entrepreneurs, investors, industry leaders, and
government organizations who are setting out to achieve once impossible dreams, working on bold missions to transform health,
and reimagining what’s possible. StartUp Health is focused on these 10 Health Moonshots, each of which can improve the
wellbeing of at least one billion people.
3Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 3/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2018 StartUp Health LLC

4
IsraelandChinaDrivingInt’lGrowth
International deal flow continues to dominate in Europe and
Asia, with each receiving $250M+ in funding from Q1, but not
always from the areas you’d expect, indicating a broad global
opportunity.
5
RobustInvestorEcosystemDoingDeals
40 investors have done more than one digital health deal so
far this year, indicating continued appetite in the space. Some
of these names may be familiar, but several new firms have
already surpassed their 2017 deal count totals.
*
PleaseNote:NEWDigitalHealthMethodology
The market is expanding, so we’re offering a more
granular approach to tracking the funding landscape. Our
new taxonomy allows us to detail where investment is
going by multiple views.
The first quarter of 2018 continued the wave of digital health investment activity - the most deal volume of any Q1 since we’ve
been tracking data along with $2.8B in total funding. In addition to increasing activity and investment dollars flowing into the
sector, we’re seeing more deal flow at every stage, across a broad spectrum of companies and technologies, from a growing
ecosystem of investors. And this stretches beyond the borders of the United States. In this report, we also are unveiling a more
granular view of cataloguing StartUp Health’s Insight data to share new trends and insights into the industry as it rapidly expands.
4
2018 Q1 SUMMARY
1
FundingIsNOTSlowingDown
The first quarter’s 191 deals makes it the biggest Q1 to date
by volume along with matching 2017’s Q1 funding of $2.8B.
An active ecosystem has emerged across the globe through
sustained funding.
2
AMaturingandGrowingMarket
We’re seeing more deals at series B rounds and beyond,
indicating a maturing sector, while early-stage funding
remains steady as a percentage of all deals.
3
Provider Solutions Attract Most Capital
Money continues to pour in to digital health, but with more
focus. Provider-focused solutions have the most capital
invested, with functions focusing on administrative workflow
and clinical workflow.
DEALS & FUNDING GEOGRAPHY INVESTORS

155
286
476
650
601
561
668
833
191
2010 2011 2012 2013 2014 2015 2016 2017 2018 (YTD)
Q1 Q2 Q3 Q4
FUNDING SNAPSHOT: YEAR OVER YEAR
5
Deal Count
$1.1B
$2.2B
$1.4B
$606M$540M$357M$224M
$8.2B
$6.2B
$7.2B
$2.9B
$2.3B
$2.0B
$1.2B
$11.7B
$2.8B
We saw nearly 60 more deals this quarter than in Q1 2017 (134), and more than the total deal count in 2010. If we exclude
last year’s $914M GRAIL mega deal, there would be $900M+ more in funding in Q1 2018 than Q1 2017. Each ﬁrst quarter on
record has been bigger than the preceding Q4 - indicating continuing investor momentum year over year.
$2.8B
$2.8B (YTD)

$.0B
$.5B
$1.0B
$1.5B
$2.0B
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2014 2015 2016 2017 2018 (YTD)
6
Funding includes GRAIL’s $914M Series B
FUNDING SNAPSHOT: MONTHLY COMPARISON
2018 saw a record breaking January, with over $1B in funding and the most deals in any January since 2013 (83).

2010
2011
2012
2013
2014
2015
2016
2017
2018
0% 25% 50% 75% 100%
Seed Series A Series B Series C Series D Series E Series F + G + H
33% 28% 10%23%
*Deal count only includes seed though series H rounds and does not include venture rounds, accelerator funding, or growth equity.
Deal Count*
122
221
288
436
390
315
368
DEAL ACTIVITY BY STAGE
462
7
Early-stage deals (seed and series A) continue to make up the majority of total deal volume, at 61% for Q1 2018, but we are
seeing a slight increase in mid-stage deals (3%) and late-stage deals (1%) from 2017.
123

Company Total Raised Function
1 $240M Clinical Workﬂow
2 $200M Biometric Data Acquisition
3 $165M Insurance
4 $146M Admin Workﬂow
5 $80M Population Health
5 $80M Research
7 $75M Biometric Data Acquisition
8 $61M Personalized Health
9 $60M Insurance
10 $59M Patient Empowerment
All of the top 10 deals of Q1 are over $50M, with the top four each surpassing $100M, making up 42% of the quarter’s total
amount invested. The top deals are widely distributed across multiple sectors.
THE 10 LARGEST DEALS OF 2018 (YTD)
8

StartUp Health has enhanced how we organize and track companies and funding data so
that we can offer new insights and more granular views of the market. This new structure
will improve how market trends are analyzed and uncover opportunities and insights for
entrepreneurs, investors, and key stakeholders.
Our new methodology starts by breaking down each company we track into six attributes
including Health Moonshot, Specialty, End-User, Function, Technology, and Application(s).
This will give us the ability to share deeper insights and new analysis with Health
Transformers, our partners, and the industry.
9
NEW METHODOLOGY TRACKING 6 ATTRIBUTES
™
For more details on the enhanced Tagging Taxonomy, visit  
startuphealth.com/blog

10
NEW METHODOLOGY ATTRIBUTE DEFINITIONS
Definition Examples
Moonshot The 25-year impact the Company will have upon the world T Access to Care, Cost to Zero, Cure Disease, End Cancer, T
Women’s Health, Children’s Health, Nutrition & Fitness,
Brain Health, Mental Health & Happiness, Longevity
Speciality The branch of medicine or disease the Company addresses T Oncology, Cardiology, Mental Health, Diabetes, Chronic T
Pain, Dermatology, Emergency Med, General Wellness
End User The organization or individual who benefits from the Company’s T
value
Patient, Provider, Administrator, Senior Care Facility, T
Hospital System, Pharmacy, Employer, Payor, Pharma,
Caregiver
Function The Company’s main activity/value driver T We consolidated Function down to 10 distinct areas: T
Wellness, Patient Empowerment, Research, Personalized
Health, Administrative Workflow, Clinical Workflow,
Biometric Data Acquisition, Population Health,
Education + Content, Insurance
Technology The delivery mechanism of the Company’s value T Predictive Analytics, Machine Learning, Marketplace, T
Mobile App, Hardware / Medical Device, Sensors, Network,
Robotics
Application The use cases for the Company’s technology T Patient Engagement, Care Coordination, Diagnostics, T
Communication, Fitness, Telemedicine, Genomics, Billing
For more details on the enhanced Tagging Taxonomy, visit  
startuphealth.com/blog

Function Total Raised Deal Count Avg. Deal Size Median Deal Size
1 Biometric Data Acquisition $537M 19 $29.8M $6.5M
2 Clinical Workflow $472M 33 $19.7M $5.2M
3 Admin Workflow $347M 28 $14.5M $4.4M
4 Personalized Health $299M 20 $17.6M $13.0M
5 Research $289M 14 $20.6M $13.0M
6 Patient Empowerment $280M 43 $7.4M $2.0M
7 Insurance $231M 6 $38.5M $2.4M
8 Population Health $230M 10 $23.0M $20.0M
9 Wellness $159M 18 $9.9M $7.5M
10 Education - 0 - -
THE MOST ACTIVE FUNCTIONS OF 2018 (YTD)
11
Biometric data acquisition, a function (the Company’s main activity/value driver) that almost always includes a hardware
component, has the highest average deal size, though not the most deals. Investors in the sector continue to shy away from
long-tail development cycles, opting instead for faster-to-market solutions, such as administrative workﬂow, clinical
workﬂow, and personalized health.

Application Total Raised Deal Count Avg. Deal Size Median Deal Size
1 Genomics $565M 11 $51.4M $40.0M
2 Diagnostic/Screening $539M 25 $21.5M $13.7M
3 Clinical Decision Support $524M 16 $32.7M $12.0M
4 Care Coordination $340M 20 $17.0M $7.8M
5 Employer Insurance $228M 4 $57.2M $31.4M
6 Operational Management $206M 24 $8.6M $3.5M
7 Personal Insurance $168M 4 $42.0M $1.5M
8 Remote/Continuous Monitoring $166M 15 $11.1M $7.3M
9 Care Pathway $146M 7 $20.9M $20.0M
10 Digital Treatment $143M 8 $17.9M $20.0M
THE 10 MOST ACTIVE APPLICATIONS* OF 2018 (YTD)
12
The applications (the use cases for the Company’s technology) genomics, diagnostic/screening, and clinical decision support
each raised in excess of $500M this quarter. Most notable is the disparity between the average and median deal size, with
medians demonstrating 50% of the deal size. Entrepreneurs should take note of these new trends when structuring their
capital campaigns and positioning.
* Deals are counted multiple times due to the ability to have multiple applications

End User Total Raised Deal Count Avg. Deal Size Median Deal Size
1 Provider $1.42B 82 $17.3M $5.8M
2 Patient $949M 71 $13.4M $5.1M
3 Consumer $591M 51 $11.6M $6.0M
4 Employer $329M 11 $29.9M $9.0M
5 Employee $300M 11 $27.3M $6.3M
6 Research $230M 12 $19.2M $10.5M
7 Pharma $208M 8 $26.0M $13.0M
8 Payor $80M 6 $13.4M $14.6M
9 Administrator $64M 6 $10.8M $1.5M
10 Caregiver $30M 4 $7.6M $5.4M
THE TOP 10 MOST ACTIVE END USERS* OF 2018 (YTD)
13
Within end users (the organization or individual who benefits from the Company’s value), most deals are continuing to
primarily serve the provider, as evidenced by the administrative workflow and clinical workflow functions. Though providers
garnered 2x more funding than the next end user (patient), the average and median funding size remained fairly even.
* Deals are counted multiple times due to the ability to have multiple end users

Specialty Total Raised Deal Count Avg. Deal Size Median Deal Size
1 Agnostic $444M 46 $9.7M $3.0M
2 Administrative $368M 22 $16.8M $5.3M
3 Oncology $308M 8 $38.5M $47.0M
4 Genomics $304M 5 $60.8M $39.0M
5 Cardiology/Cardiovascular $303M 6 $50.6M $9.0M
6 Primary Care $193M 11 $17.6M $8.0M
7 Consumer Health $120M 8 $15.0M $12.5M
8 General Wellness $117M 17 $6.9M $8.0M
9 Preventative $115M 3 $38.5M $39.0M
10 Chronic Disease $99M 8 $12.4M $26.0M
THE TOP 10 MOST ACTIVE SPECIALTIES* OF 2018 (YTD)
14
Although the bulk of deals were agnostic within specialties (the branch of medicine or disease the Company addresses),
there were 31 deals across genomics, cardiology/cardiovascular, and administration-geared solutions, raising a collective
$907M this quarter.
* Deals are counted multiple times due to the ability to have multiple specialties

Technology Total Raised Deal Count Avg. Deal Size Median Deal Size
1 Web App $953M 83 $11.5M $4.0M
2 Genetic Sequencing $497M 9 $55.3M $40.0M
3 Hardware/Medical Device $421M 22 $19.1M $15.0M
4 Mobile App $409M 59 $6.9M $5.3M
5 Analytics Tool $393M 38 $10.3M $6.5M
6 Bioinformatics $253M 5 $50.7M $58.0M
7 Medical Imaging $250M 5 $50.0M $4.7M
8 Artifical Intelligence $230M 24 $9.6M $5.1M
9 Sensor $226M 15 $15.1M $14.0M
10 Machine Learning $189M 16 $11.9M $5.0M
THE TOP 10 MOST ACTIVE TECHNOLOGIES* OF 2018 (YTD)
15
Although we saw the hype surrounding artiﬁcial intelligence and machine learning increase within the last year, they only
ranked 8th and 10th in our most-funded technologies (the delivery mechanism of the Company’s value). Web apps are
holding strong as the most-funded technology with $456M more funding than genetic sequencing. T
* Deals are counted multiple times due to the ability to have multiple technologies

We saw activity in most functions at the early and mid stages and our new methodology gives insight into which functions,
including biometric data acquisition and wellness, are beginning to mature.
47%
Patient Empowerment
Personalized Health
Clinical Workﬂow
Research
Insurance
Wellness
10 8 2 0 0 0
9 2 3 0 0 1
6 3 7 2 0 0
4 11 1 2 0 2
4 3 2 1 1 0
3 2 3 4 0 1
1 3 7 2 0 0
1 3 3 1 1 0
2 0 0 0 1 0
Admin Workﬂow
Population Health
Biometric Data Acquisition
Seed Series A Series B Series C Series E
MARKET MATURITY MAP BY FUNCTION 2018 (YTD)
More funding activity Less funding activity
16
Series D

Region
2018 YTD
Deal Count
2017 
Deal Count
1 SF Bay Area 34 147
2 New York City 18 78
3 Boston 11 31
4 Phoenix 4 4
4 Baltimore 4 10
4 Austin 4 15
4 Chicago 4 24
4 Los Angeles 4 21
5 Washington, DC 3 11
Q1 2018 saw several new metro areas break into the top 10 for number of deals and total dollars. Phoenix and Baltimore
have both far-and-away surpassed their 2017 funding totals and are on track to equal or surpass deal volume this year.
INVESTORS
$40M
$349M
$198M
$56M
$904M
San Francisco
Bay Area
Denver
Phoenix
New York City
Boston
$162M
Chicago
$62M
Minneapolis /
St. Paul
(2 Deals)
(2 Deals)
(34 Deals)
(4 Deals)
(4 Deals) (17 Deals)
(11 Deals)
Austin
$81M
(4 Deals)
DEALS & FUNDING GEOGRAPHY
THE MOST ACTIVE U.S. METRO AREAS OF 2018 (YTD)
17
$92M
Baltimore
(4 Deals)
$50M
Los Angeles
(4 Deals)
* Map shows top 10 metro areas by total dollars (USD)

Israel and China continue to be the largest international hubs for digital health funding activity, with $107M and $146M
invested in Q1, respectively. New funding activity in Jerusalem (Israel) and Chengdu (China) is the primary contributor to this
growth.
INTERNATIONAL METRO HUBS OF 2018 (YTD)
China
18
$26M
$110M
$17M
$36M
$150M
Toronto
London
Chengdu
Beijing
Ottawa
$16M
Bengaluru
$77M
Tel Aviv
(2 Deals)
(2 Deals)
(2 Deals)
(4 Deals) (5 Deals)
(1 Deal) Dublin
$50M
(1 Deal)
$29M
Tokyo
(2 Deals)
$30M
Jerusalem
(1 Deal)
(4 Deals)
* Map shows top 10 metro areas by total dollars (USD)
Region
2018 YTD
Deal Count
2017 
Deal Count
1 Beijing 5 16
2 Tel Aviv 4 19
2 Bengaluru 4 20
2 Singapore 4 9
4 Hyderabad 2 5
4 London 2 24
4 Stockholm 2 16
4 Chengdu 2 2
4 Tokyo 2 3
4 Toronto 2 21
INVESTORSDEALS & FUNDING GEOGRAPHY

Firm 2018 YTD Deals* 2017 Q1 Deals* Stage
Early Mid Late
1 5 3
1 5 2
1 5 0
2 3 2
2 3 2
2 3 1
2 3 1
THE MOST ACTIVE INVESTORS OF 2018 (YTD)
19
*Deal counts excludes accelerator rounds
The top investors have all increased or maintained their ﬁrst quarter digital health investment activity compared to Q1 2017.
There were also 33 investors who have done two deals so far this year, indicating a strong appetite for digital health deals.

STARTUP HEALTH COMPANY MERGERS & ACQUISITIONS
20
September
2017
acquired by
January
2017
acquired by
October
2016
acquired by
July
2016
acquired by
May
2016
acquired by
March
2016
acquired by
June
2016
acquired by
May
2015
acquired by
March
2014
acquired by
October
2013
acquired by
July
2013
acquired by
April
2017
merged with
October
2016
merged with
October
2016
acquired by
December
2017
merged with
December
2017
acquired

STARTUP HEALTH’S GROWING ARMY

22
ARMY OF HEALTH TRANSFORMERS BY HEALTH MOONSHOT
Women’s Health
Access to Care Cure Disease Longevity
Cost to Zero
Nutrition & Fitness
Mental Health & Happiness
End Cancer
Children’s Health
Brain Health

23
STARTUP HEALTH’S MOONSHOT MEDIA

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, genomics, and personalized medicine.
• StartUp Health tracks companies based on their Health Moonshot, function,
applications, specialties, technology types, and end users. Investments in each
of these tags are not mutually exclusive, as deals are tagged with multiple
Moonshots, applications, specialties, end users, and technology types, based on
the company’s focus.
• These categorizations fall into The StartUp Health Moonshot ID to help define
each company:
• To achieve the MOONSHOT in SPECIALTY, COMPANY provides END USER
with a FUNCTION TECHNOLOGY for APPLICATIONS.
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 accelerator, pre-seed, 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 accelerator 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.
METHODOLOGIES

StartUp Health Insights Global Digital Health Funding Report Q1 2018

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