Startup Health Insights Midyear Venture Funding Report

StartUp Health Insights:
2014 Midyear Report
© 2014 StartUp Health, LLC
A StartUp Health Insights Report
Visit startuphealth.com/insights for more funding data
Published: July 2, 2014

Source: StartUp Health Insights | www.startuphealth.com/insights
Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC
DIGITAL HEALTH CONTINUES TO ACCELERATE
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Funding into the digital health sector continues to accelerate, with the first half of 2014 already
surpassing total funding in 2013. There were 248 deals in the first half of the year, raising a combined
total of $3.3 billion. Interesting trends to pay attention to for the rest of the year and beyond:
!
• Deal Size: Investment size continues to increase and while the IPO market is early, we are starting to
see liquidity events for investors.
• Regional Funding: While the largest sources of capital are still the Bay Area, NYC and Boston,
startups are launching and receiving funding all over the country (and world). StartUp Health
company Aver Informatics out of Columbus, OH, recently raised $8.5 million from Columbus-based
Drive Capital and GE Ventures.
• Global Innovation: There are over 5,000 startups across the globe that are developing novel
technologies in digital health based on data from the StartUp Health Network. The StartUp Health
Academy is no exception to global innovation, with 71 companies from 7 countries.
• New Entrants: Samsung, Google and Apple have all recently announced major health technology
initiatives. This will further accelerate innovation and investment activity in the digital health sector
with new applications and devices that can further leverage the platforms.
• Wave of Active Health Consumerism: As a result of high-deductible plans, price transparency and
new market solutions, populations are becoming more informed and empowered.
• Consolidation: Massive consolidation of healthcare systems and providers markets is expected.

Funding($B)
$1B
$2B
$3B
$4B
Deals
150
300
450
600
2010 2011 2012 2013 1H 2014
Deals Funding
$3.3B$2.8B$2.2B$1.6B$1.1B
248
580
447
242
142142
242
447
580
248
Funding in digital health continues to accelerate, with 1H 2014 surpassing total 2013 funding
DIGITAL HEALTH DEALS & FUNDING
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Funding in the New York metropolitan area nearly tripled from 1H 2013 to 1H 2014, as
regional startup ecosystems develop across the nation
MOST ACTIVE U.S. REGIONS IN 1H 2014
$712M
$501M
$326M
$121M
$100M
$113M
4

FUNDING IN TOP MARKETS 1H 2014
Many of the top funded markets in 1H 2014 already surpassed funding totals for 2013
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Funding($M)
$275M
$550M
$825M
$1,100M
$380M
$478M
$716M
$925M
$1,037M
Big Data &
Analytics
Navigating the
Care System
Practice
Management
Diagnostics Consumer
Health
*Denotes percent growth from market funding in 2013
+54%* +89%* +114%* +38%* —

Practice Management
!
$550M*
LARGEST DEALS IN 1H 2014
Clinical Decision Support
!
$135M
Care Management
!
$130M
Population Health
!
$125M
Sensors
!
$120M
Diagnostics
!
$105M
Big Data
!
$100M
Workflow Systems
!
$89M
Insurance Provider
!
$80M
Practice Management
!
$78M
*Strategic growth equity investment
6
Genomics
!
$70M
Benefits Management
!
$67M
Clinical Trial Support
!
$61M
Physician Collaboration
!
$54M
Practice Management
!
$51M

2010
2011
2012
2013
1H 2014
0% 25% 50% 75% 100%
Seed Series A Series B Series C Series D Series E Series F
Mid-stage* deals show consistent growth year-over-year, as 30% of companies receive
follow-on funding in 1H 2014
DEALS BY STAGE
7
*Mid-stage deals include Series B and Series C

$0M
$4M
$8M
$12M
$16M
2010 2011 2012 2013 1H 2014
MEDIAN ROUND BY STAGE
8
-27%
61%79%4%83%
Seed Series A Series B Series C Series D
CHANGE IN MEDIAN DEAL SIZE FROM 2013
There was an 83% increase in the median size of seed deals between 2013 & 1H 2014

MEDIAN DEAL SIZE
9
$1M
$2M
$3M
$4M
$5M
2010 2011 2012 2013 1H 2014
MEDIAN DEAL SIZE BY ROUND
$8.0M$15.0M$12.2M$4.0M$1.2M
Seed Series A Series B Series C Series D
Total median deal size in 1H 2014 increased by 150% since last year

MOST ACTIVE VCs IN 1H 2014
6
5
5
4
4
4
4
10
Number of Deals
10 VCs
26 VCs
3
2
120 VCs 1

DIGITAL HEALTH IPOS IN 1H 2014
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Practice Management
!
$75M
Big Data
!
$1.3B
Consumer Health
!
$110M
Benefits Management
!
$177M

STARTUP HEALTH PORTFOLIO NOW 71 COMPANIES
ACQUIRED COMPANIES
24 companies added during 1H 2014
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ABOUT STARTUP HEALTH
StartUp Health, a global startup platform accelerating innovation in health and
wellness, represents a new model for helping entrepreneurs succeed in the health
sector. StartUp Health is on a mission to inspire, educate and help 1,000 health
startups to reimagine and transform healthcare over the next decade.
!
StartUp Health was founded by health tech entrepreneurs Steven Krein and Unity
Stoakes and is chaired by former Time Warner CEO, Jerry Levin. The organization’s
investors include leading health, technology, and business minds, including Steve
Case, Mark Cuban, Esther Dyson, Roger Ehrenberg, Brad Feld, Richard Forman,
Jason Finger, Linda Holliday, Jon Kaplan, Howard Krein, MD, PhD, Jon Miller, Jeff
Stewart and Wayne Kimmel.
!
Learn more and apply at startuphealth.com/apply and follow @startuphealth.
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Report authored by: Kiyan Rajabi, Tanner Yager and Brian Edwards
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Startup Health Insights Midyear Venture Funding Report

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