StartUp Health Insights Global Digital Health Funding Report: 2018 Year End Review

© 2018 StartUp Health, LLC
STARTUP HEALTH INSIGHTS
Global Digital Health Funding Report
 
Data through December 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 Year End Report
TM
© 2019 StartUp Health Holdings, Inc.

Pages Topic
3 ………………………………… Health Moonshots
4 ………………………………… 2018 Summary
5-15 ………………………………… Deals and Funding
16-18 ………………………………… Investors
19-22 ………………………………… Segment Detail
23-25 ………………………………… Health Transformers
26 ………………………………… Methodology
StartUp Health InsightsTM Contributors
Jennifer
Hankin
Mark
Liber
Anne
Dordai
Nicole
Kinsey
Tara
Salamone
Polina
Hanin
Liz
Tucci
Logan
Plaster
ABOUT STARTUP HEALTH
At StartUp Health we believe that with the right mindset, a
moonshot vision, and the spirit of an entrepreneur, anything is
possible. We also know that something magical happens when you
bring together people who are passionate about impacting people’s
lives for the better around common goals. That’s why since 2011,
we’ve been organizing a global army of Health Transformers to
solve the world’s biggest health challenges. Now more than ever
we think that it’s important to share the stories of the
entrepreneurs and innovators who are doing the extraordinary each
day with passion, purpose, imagination, persistence, courage, and
humility. These are the people who are reimagining the future of
health and impacting people’s lives. We hope you will join us in
supporting Health Transformers everywhere. Together we will
achieve the impossible. Together we will improve the health and
wellbeing of everyone in the world.
Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC
Nicole
Clark

ON A MISSION TO ACHIEVE HEALTH MOONSHOTS
At StartUp Health we are bringing together a new generation of entrepreneurs, investors, industry leaders, and government
organizations who are working on bold missions to transform health. Here are the Health Moonshots around which StartUp
Health has focused its efforts.
3Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data through 12/31/18 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. © 2019 StartUp Health LLC
AccesstoCareMoonshot
Together we can deliver quality care to  
everyone, regardless of location or income
CosttoZeroMoonshot
Together we can reduce the cost of care to “zero”
CureDiseaseMoonshot
Together we can rid the world of disease
CancerMoonshot
Together we can end cancer as we know it
Women’sHealthMoonshot
Together we can improve the health of every
woman, closing the gender gap
Children’sHealthMoonshot
Together we can ensure that every child has
access to quality care
NutritionandFitnessMoonshot
Together we can ensure access to food, water
and a healthy lifestyle
BrainHealthMoonshot
Together we can unlock the mysteries of the
brain to improve health and wellness
HappinessandMentalHealthMoonshot
Together we can connect mind, body and spirit
in the pursuit of wellbeing
AddictionMoonshot
Together we can end addiction and the opioid
epidemic
LongevityMoonshot
Together we can add 50 healthy years to  
every human life
DEALS & FUNDING INVESTORS SEGMENT DETAIL

Welcome to the most-funded year ever in digital health. Investments topped hundreds of millions of US dollars for the first time,
with funds funneling to a broader range of cities like Bengaluru and Nashville. Globally, investors are on track to nearly double
their 2017 investments, demonstrating long-term commitments, as well as overall growth potential in the market. The digital
health market is as potent as ever.
4
2018 END OF YEAR SUMMARY
Biggest Year Ever
2018 was the biggest year for digital health since StartUp
Health began tracking the market in 2010. Digital health
funding was 14 times more than what it was eight years ago,
and from 2017 to 2018, average deal size grew by $6M.
1
Funding The World’s Largest Health Needs
Companies providing mental health solutions received record-
breaking funding in 2018, $602M across 80 deals, tripling this
segment's funding since 2014. Patient empowerment received the
most funding of any function in 2018, $3B across 193 deals.
2
Digital Health = Health
In 2018, various technology types gained increased attention from
investors, including machine learning, blockchain, AI, and IoT.
Machine learning companies cut 66 deals to raise $940M, an 80%
increase in funding compared to 2017.
3
New Kids On The Block
Globally, new cities made their debut on the digital health scene
in 2018 as potential leaders of innovation and investment.
Companies headquartered in Nashville raised $380M in 2018,
while companies in Bengaluru and Toronto raised over $225M.
4
China Remains A Market Leader
Deregulation and health reform continue to fuel digital health’s
growth in China in 2018. Beijing and London closed the same
amount of deals in 2018, but larger deals in Beijing brought their
year total close to nearly five times that of London’s.
5
A Is The New C
Median deal size continues to climb, at every stage. The median
A round today (~$8M) is the size of a series C in 2013. Although
deal volume leveled off across all stages in Q4, median series C
deal sizes soared.
6

2010 2011 2012 2013 2014 2015 2016 2017 2018
Q1 Q2 Q3 Q4
153
283
476
647
608
568
684
851
765
FUNDING SNAPSHOT: YEAR OVER YEAR
5
Deal Count
$1.4B
$1.7B
$1.7B
$627M
$603M$459M
$8.2B
$6.2B
$7.1B
$2.9B
$2.3B
$2.0B
$1.2B
$11.7B
$2.3B
Funding surpassed 2017 numbers by almost $3B, making 2018 the fourth consecutive increase in capital investment and
largest since we began tracking digital health funding in 2010. Deal volume decreased from Q3 to Q4, but deal sizes spiked,
with $3B invested in Q4 alone. Average deal size in 2018 was $21M, a $6M increase from 2017.
$3.0B
$14.6B

Region
Total 2018
Deal Count
Total 2017
Deal Count
1 SF Bay Area 131 126
2 New York City 88 63
3 Boston 44 29
4 Los Angeles 25 21
5 Chicago 12 20
6 Minneapolis 11 11
6 Seattle 11 14
7 Austin 9 11
8 Baltimore 8 10
8 Miami 8 6
9 Denver 7 11
9 Philadelphia 7 12
Nashville made its debut on this map, raising the most funding in 2018 behind the usual suspects: NYC, San Francisco, and
Boston. The metro areas below account for nearly 70% of total digital health funding for 2018.
$122M
$1.7B
$111M
$3.8B
San Francisco
Bay Area
Denver
San Diego
New York City
Boston
$349M
Chicago
$364M
Minneapolis /
St. Paul
(11 Deals)
(7 Deals)
(131 Deals)
(5 Deals)
(12 Deals)
(88 Deals)
(44 Deals)
Austin
$199M
(9 Deals)
THE MOST ACTIVE U.S. METRO AREAS OF 2018
6
$110M
Baltimore
(8 Deals)
$213M
Los Angeles
(25 Deals)
*Map shows total funding YTD for top 10 metro areas by total dollars (USD)
$2.4B
(6 Deals)
Nashville
$380M

Region
Total 2018
Deal Count
Total 2017
Deal Count
1 London 21 22
1 Beijing 21 15
2 Bengaluru 15 17
2 Stockholm 15 15
3 Singapore 14 8
4 Toronto 13 15
5 New Delhi 12 9
6 Tel Aviv 10 17
7 Vancouver 9 2
8 Berlin 8 9
Beijing and London closed the same number of deals in 2018, but larger deals in Beijing brought their year total close to
nearly ﬁve times that of London’s. Bengaluru, where India’s IT industry began 25 years ago, is proving to be a major hub for
digital health in Asia, closing the second largest number of deals in 2018.
INTERNATIONAL METRO HUBS OF 2018
China
7
$198M
$950M
$105M$108M
$262M
Toronto
London
Paris
Beijing
Hangzhou
$229M
Bengaluru
$131M
Tel Aviv
(21 Deals)
(13 Deals)
(7 Deals)
(15 Deals)
(21 Deals)
(2 Deals)
Zhenjiang
$100M
(1 Deal)
$125M
Shanghai
(6 Deals)
$79M
Stockholm
(15 Deals)
(10 Deals)
* Map shows top 10 metro areas by total dollars (USD)

Company Round Total Function
1 $550M Wellness
2 $380M Personalized Health
3 $375M Insurance
4 $300M Biometric Data Acquisition
5 $300M Personalized Health
6 $300M Patient Empowerment
7 $291M Patient Empowerment
9 $240M Clinical Workﬂow
The closing of a handful of mega deals each quarter continued to be the norm, not the exception. Peloton held its spot as the
largest deal of 2018. This quarter, Smile Direct Club joined the list as the second largest deal of 2018. Deals made in 2018
represented more than half of ten digital health functions, with biometric data acquisition appearing most frequently.
THE 10 LARGEST DEALS OF 2018

THE TOP 10 INTERNATIONAL DEALS OF 2018
Company Total Raised Metro Area Function
1 $149M Beijing, China Population Health
2 $147M Beijing, China Education + Content
3 $146M Toronto, Canada Admin Workﬂow
$133M Guangzhou, China Patient Empowerment
$130M Beijing, China Patient Empowerment
$127M Beijing, China Wellness
$120M Bengaluru, India Wellness
$115M London, England Research
$103M Beijing, China Clinical Workﬂow
10 $100M Zhenjiang, China Education + Content
More than half of the largest international deals of 2018 originated in China, with six of them occurring in Q3. Seven out of 10
digital health functions are represented in this year’s international deals.
4
5
6
7
8
9

$.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
10
Funding includes Grail’s $914M Series B
FUNDING SNAPSHOT: MONTHLY COMPARISON
It was a hot summer for digital health funding. 2018 Q3 boasted the highest funded summer months compared to the
previous four years, with July being the most lucrative month – almost $2B raised. Things cooled off the second half of the
year, but not before a brief funding spike in October.

FUNDING VELOCITY: FIVE THRIVING FUNCTIONS
11
Admin workﬂow and patient empowerment companies raised B rounds the quickest, while personalized health companies
had the longest interval between series A and series B funding. Compared to series A, it took an average of 1.4 additional
months to raise series B funding.
.0%
.05%
.11%
.16%
0 11 22 33 44 55
Number of Months From Series A to Series B (2013-2018 Data)
Personalized Health
21.4 months
Patient Empowerment
17.2 months
Admin Workﬂow
17.2 months
Average Time From A to B Round
18.6 months
Wellness
20.9 months
Distribution
Research
18.7 months

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
28% (121 Deals) 33% (142 Deals)
10%
(43 Deals)
23% (102 Deals)
*Deal count only includes seed though series H rounds and does not include venture rounds, accelerator funding, or growth equity.
Deal Count*
396
326
385
DEAL ACTIVITY BY STAGE
487
12
Total share of seed rounds continued to decrease in 2018, while the percentage of mid-stage deals grew by ~15% compared
to 2017. Series D and E deals account for six percent of total deals, which is the highest percentage we’ve seen in the last
ﬁve years.
4364%

DealCount
0
10
20
30
40
50
60
Series C
DealCount
0
30
60
90
120
150
Series B
DealCount
0
30
60
90
120
150
Seed
2014 2015 2016 2017 2018
MEDIAN ROUND SIZE: FUNDING ROUND COMPARISON
13
Fundraising rounds were bigger at every stage in 2018. Despite a decrease in seed and series A deal volume, median deal
sizes rose in these early investment rounds. Series C deal volume leveled, but deal sizes soared, thanks to raises like
Grail’s $300M series C round. Series B deals steadily increased in frequency and size.
DealCount
0
30
60
90
120
150
Series A
$2M 
 
$1M 
 
$0
MedianDealSize
$8M 
$4M 
 
$0
MedianDealSize
$20M 
 
$10M
 
 
$0
MedianDealSize $30M 
 
$15M 
 
 
$0
MedianDealSize
Median Funding Amount

FrequencyofDealSize
0
25
50
75
100
125
150
175
200
225
$1M $5M $10M $25M $50M $100M $150M $200M $250M $300M $350M $400M $450M $500M $750M $1.0B
2014 2015 2016 2017 2018
$380M
$550M
ROUND SIZE FREQUENCY: FUNDING GIANTS
14
The frequency of large mid-stage and early-stage deals continued to grow, with the largest jumps in $50M and $150M deals, at
46% and 100%, respectively. While this is on trend with years past, $1M, $5M, and $10M deals decreased by 68%, 16%, and 12%.

STARTUP HEALTH PORTFOLIO: 2018 DEALS BY FUNCTION
StartUp Health’s portfolio of health moonshot companies raised more than $356M across seven digital health functions in
2018. Devoted Health, Joint Academy, and Adheretech are making patient empowerment a priority, while Indago and
Mediktor represent clinical workflow solutions.
6%
14%
17%
9% 11%
40%
$356.6M
TOTAL RAISED
40%
11%9%
17%
14%
3%
6%
Company Function
1
Patient  
Empowerment
2
Patient  
Empowerment
3
Patient 
Empowerment
4
Clinical 
Workflow
5
Clinical 
Workflow
Patient Empowerment
Clinical Workflow
Admin Workflow
Wellness
Personalized Health Biometric Data Acquisition
Population Health
TOP 2018 DEALS
15

Firm 2018 Deal Count 2017 Deal Count Stage
Early Mid Late
1 14 10
2 12 8
3 11 9
3 11 8
4 9 3
5 8 0
6 7 5
6 7 9
6 7 5
6 7 5
THE MOST ACTIVE INVESTORS OF 2018
16
A majority of 2018 investors on this list met or exceeded their 2017 deal count. BoxGroup and Y Combinator made the list for
the ﬁrst time this year, with BoxGroup tripling their number of investments compared to 2017. Khosla Ventures closed out the
year with the most deals.
INVESTORS SEGMENT DETAILDEALS & FUNDING

The most active investors of 2018 participated in a total of nine digital health functions. Khosla Ventures, New Enterprise
Associates, and F-Prime Capital had the most diverse portfolios of 2018, each investing in seven different functions.
Investors
THE TOP INVESTORS OF 2018 BY FUNCTION
17
Research Biometric Data
Acquisition
Wellness
Admin
Workﬂow
Patient
Empowerment
Clinical Workﬂow Insurance
Personalized
Health
Population
Health

0
25
50
75
100
125
150
175
200
2010 2011 2012 2013 2014 2015 2016 2017 2018
2 3 4 5 6+
1
The total number of unique investors in 2018 was just 10 shy of what we saw in 2017. Investments in two and three deals
continued to trend upwards, increasing year over year.
174
284 299
488
611 647
921
1,247 1,237
InvestorCount
# of Deals by Investor
TOTAL INVESTORS YEAR OVER YEAR
Total Unique Investors

MOST ACTIVE FUNCTION: PATIENT EMPOWERMENT
19
StartUp Health 
Company Spotlight:
For patients with osteoarthritis, Joint
Academy is a digital clinic that delivers a
behavioral medicine protocol to prevent and
reverse chronic OA symptoms. A certiﬁed
therapist virtually guides the patient
through the program and can oversee
progress over time.
Patient Empowerment
WHAT THESE COMPANIES CARE ABOUT
Navigating the
HC System
Tele-
medicine
Patient
Engagement
Primary
Care
Specialty
Agnostic
Aging/
Senior Care
TotalRaised
$463.4M
$591.8M
$879.8M
$1.1B
$1.2B
$417.5M
Subsector Specialty
$20M
AVG DEAL SIZE
$3.3B
TOTAL RAISED
SEGMENT DETAILDEALS & FUNDING INVESTORS
• Across all major functions, companies working to empower patients along their
health journeys received the most funding in 2018
• A majority of these patient empowerment companies focus on helping patients
navigate the healthcare system and opening up direct communication with
healthcare providers
• Within this function, the most active specialty was primary care, followed by
specialty agnostic companies and aging/senior care solutions
• Largest patient empowerment deals of 2018 included: Devoted Health, American
Well, and Bright Health

DIGGING DEEPER: DIAGNOSTICS + SCREENING TOOLS
StartUp Health 
Company Spotlight:
Diagnostics / Screening
For pharmaceutical companies who need a
low cost, easy-to-use, non-invasive
diagnostic in order to market new
therapeutics for endometriosis, Oratel
Diagnostics' offers a saliva-based diagnostic
technology, ENDO-TEK, that can identify
endometriosis with 90% accuracy.
$32M
AVG DEAL SIZE
$2.3B
TOTAL RAISED
Genetic
Sequencing
Hardware/
Medical
Device
Analytics
Tool
Machine
Learning
Artiﬁcial
Intelligence
TotalRaised
$330.6M
$397.1M$410.5M
$486.9M
$745.6M
TRENDING TECHNOLOGY TYPES
SEGMENT DETAILDEALS & FUNDING INVESTORS
• Diagnostics/screening was the most funded digital health subsector in 2018
• Within this subsector, prevalent company specialties included oncology,
genomics, and radiology
• Genetic sequencing was the most funded technology type among diagnostics/
screening companies, which included to two of 2018’s largest deals: Grail and
23andme, each raising $300M
• Hardware/medical device was the second most active technology type, with
analytics tool, machine learning, and artiﬁcial intelligence close behind
20

SECTOR TO WATCH: MACHINE LEARNING
21
YEAR OVER YEAR FUNDING
2014 2015 2016 2017 2018
$940M
$520.8M
$332.1M
$103.4M$72.1M
StartUp Health 
Company Spotlight:
Machine Learning
CarePredict is a smart sensor system for
senior living facilities that minimize reliance
on human observation in the care of seniors
by utilizing continuous machine observation,
sensing, and deep learning to trigger
interventions and enabling the elderly to
age independently, economically, longer.
$15M
AVG DEAL SIZE
$940M
TOTAL RAISED
TotalRaised SEGMENT DETAILDEALS & FUNDING INVESTORS
• Funding for companies utilizing machine learning technology to provide more
productive and customized health solutions has increased year over year, taking
the largest jump from 2017 to 2018
• Compared to 2017, average deal size increased by more than 50%
• Within these companies, those providing diagnostics/screening, clinical decision
support, and drug discovery tools were most active, constituting 65% of
machine learning funding in 2018
• Largest deals included Linkdoc, Bind Health, and MeMed, accounting for a third
of total funding within the machine learning sector

MENTAL HEALTH: GETTING THE ATTENTION IT DESERVES
22
YEAR OVER YEAR FUNDING
2014 2015 2016 2017 2018
$602.2M
$575.3M
$419.2M$432.5M
$192.3M
StartUp Health 
Company Spotlight:
Mental Health
For the black male population of the United
States, Henry Health provides culturally-
sensitive self-care support and mental
health services solution to achieve optimal
wellness.
$11M
AVG DEAL SIZE
$602M
TOTAL RAISED
TotalRaised SEGMENT DETAILDEALS & FUNDING INVESTORS
• Companies focused on mental health received record-breaking funding, with
total amount raised in 2018 more than tripling since 2014
• Mobile apps built for patients and consumers was a trending technology type,
representing 77% of total funding in the mental health sector
• Largest deals in 2018 included Doctor on Demand and Soyoung, raising $74M
and $70M, respectively
• As the stigma around mental health continues to decrease, we expect to see
sustained growth into 2019 and beyond

STARTUP HEALTH COMPANY MERGERS & ACQUISITIONS
23
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
April
2018
acquired by
June
2018
acquired by
June
2018
acquired
August
2018
acquired by

STARTUP HEALTH’S GROWING ARMY

25
JOIN THE MOVEMENT
Meet the entrepreneurs transforming health on StartUp Health HQ.
Join today at hq.startuphealth.com

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.
26
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: 2018 Year End Review

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