2015 was the year digital health funding hit its stride, and 2016 has already stepped 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.

1. © 2016 StartUp Health, LLC
Published: April 1, 2015
StartUp Health Insights
Digital Health Funding Rankings
Q1 2016
TM
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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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
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 Q1 Summary
1 2016 Starts Strong: With a record $1.8B in funding, Q1 2016 started with big numbers. 2016 already saw 4 deals over $100M,
as compared to 7 in all of 2015.
2
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
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.
3
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
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.
4
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
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.
5
New York Takes the Lead: New York overtook the San Francisco Bay Area in funding amount this quarter, in large part due
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.
DEALS & FUNDING INVESTORS
2
50+ MARKET

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
150
280
465
617
561
490
100
Digital Health Funding Snapshot Year Over Year (2016 YTD)
Funding($B)
$2
$4
$6
$8
2010 2011 2012 2013 2014 2015 2016YTD
Q1 Q2 Q3 Q4
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.
Q1 Deal Count
DEALS & FUNDING INVESTORS
$1.1B $1.8B
3
$1.7B$618M$553M$389M$194M
50+ MARKET

4. 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
$0
$250,000,000
$500,000,000
$750,000,000
$1,000,000,000
$1,250,000,000
2010 2011 2012 2013 2014 2015
R² = 0.5582
Digital Health Funding Snapshot Month Over Month
As the market continues to progress, monthly ups and downs have begun to trend at $700M/month.
DEALS & FUNDING
$320M Series B
$150M Series C
$37.5M Venture
$37.9M Venture
$101M Series B
$394M Venture
$33M Series B
$31M Series A
$400M Series C
$230M Series B
$500M Series C
R2 = 0.5582
4
$1.25B
$1.00B
$0.75B
$0.50B
$0.25B
$400M Venture
2016YTD
INVESTORS 50+ MARKET

5. 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
DEALS & FUNDING
5
INVESTORS 50+ MARKET
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