StartUp Health and AARP announce the first ever digital health funding insights report evaluating the 50+ market. This report highlights the encouraging rise in health innovation among a growing population with increased medical needs.

1. Digital Health
Insights for the 50+ Market
2013 Annual Report
startuphealth.com/insights
Published: January 14, 2014
A REPORT PREPARED FOR

2. Digital health and wellness investments have
rapidly expanded from $999M in 2010 to $2.82B
Deal count more than quadrupled from 139 to 575
Deal Count
575
500
440
Total Funding
$3,000M
512
375
$2,250M
250
$1,500M
234
125
$958M
139
$1.57B
$2.32B
$750M
$2B
$1.55B
$2.03B
$2.82B
2010
0
$999M
2011
2012
2013
Deal Count
Published: January 14, 2014
Total Funding
$0M
1
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights

3. Early stage innovation is the
Change: Healthcare Reform
primary growth driver because Technology: Mobile & Digital Health
of the following conditions:
Acceleration: Chronic Disease, Aging & Cost
Opportunity: Golden Age of Entrepreneurship
71% of deals were in Seed & Series A rounds
Total
Funding
$967M
Deal Count
$800M
400
410
$641M
300
$590M
291
$400M
200
$283M
100
$600M
145
73
86
41
43
12
17
23
2011
2012
99
$200M
31
0
$0M
2010
Early-Stage Deal Count
Mid-Stage Deal Count
Late-Stage Deal Count
Venture-Round Deal Count
2013
Total Funding
2
Published: January 14, 2014
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights

4. Opportunities
in the
50+ Market
Vtial Sign
Monintoring
Emergency Detection
and Response
Aging with
Vitality
Traditional 50+ Market
50+ referred only to
the aging market
Navigating
The Healthcare
System
Medication
Management
Behavioral and
Emotional Health
Physical
Fitness
Social
Engagement
Diet and
Nutrition
Preventative medicine is a growing focus among the 50+
market leading to increased opportunity across
the nine areas of digital health and wellness innovation
3
Published: January 14, 2014
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights

5. Funding in the 50+ market rose 33%
from $722M last year to $1.15B in 2013
Deal Count
Total Funding
$1,000M
300
248
$750M
225
186
$500M
150
95
75
$250M
49
$425M
$626M
$722M
$1.15BM
2010
2011
2012
2013
$0M
0
Deal Count
Total Funding
4
Published: January 14, 2014
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights

6. Early-stage deal count in 50+ market grew
more than seven-fold from 25 in 2010 to 183
in 2013
Deal Count
$406M
Total
Funding
250
$375M
200
$300M
183
$225M
150
$221M
$187M
132
$150M
100
60
50
25
0
$89M
19
16
5
8
38
29
$75M
16
10
$0M
2010
Early-Stage Deal Count
Mid-Stage Deal Count
2011
Late-Stage Deal Count
Venture-Round Deal Count
2012
2013
Total Funding
5
Published: January 14, 2014
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights

7. The 50+ market continues to grow
at the pace of the digital health and
wellness market
Total Funding
$626M
$1.15B
$722M
$425M
$999M
$1.55B
$2.03B
$2.82B
2010
2011
2012
2013
Digital Health Wellness
50+
50+ health investment sector as percent of total digital health wellness
50%
42%
41%
40%
30%
40%
35%
2010
Deal Count
2011
42%
43%
41%
36%
2012
2013
Funding
6
Published: January 14, 2014
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights

8. Stage distribution of 50+ market deals and
funding mirrors industry-wide activity
2013 Digital Health Wellness
2013 50+ Market
100%
100%
75%
75%
50%
50%
25%
25%
0%
Deal Count
Funding
Early-Stage Deal Count
Mid-Stage Deal Count
0%
Deal Count
Funding
Late-Stage Deal Count
Venture-Round Deal Count
7
Published: January 14, 2014
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights

9. 2013 Notable VCs by stage in 50+ market
denotes 3+ investments
SEED
SERIES A
SERIES B
SERIES C
SERIES D
SERIES E
8
Published: January 14, 2014
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights

10. Social Engagement
2013 Activity
Third highest year-over-year growth in median size
deal value at 120%
Deal Count
31
27
30
Total Funding
$150M
23
$113M
15
$75M
Early-Stage
Mid-Stage
Venture-Stage
Deal Count Total Funding
NOTABLE DEALS IN 2013
$8M
Series C
$7M
Series C
$900K
Seed
$4.3M
Series A
9
8
0
$38M
4
$43M
2010
$26M
2011
Deal Count
$105M
$149M
NOTABLE INVESTORS
$0M
2012
2013
Total Funding
MARKET INSIGHT*: Estimates suggest 40-80% of the 50-64 population and 30-70% of the 65+
population would be interested in a social engagement solution
*Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights
Published: January 14, 2014
9
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights

11. Medication Management
2013 Activity
Early-Stage
Mid-Stage
Venture-Stage
Newest market opportunity in 50+ Market
Deal Count Total Funding
Deal Count
13
11
Total Funding
$13M
10
8
$10M
6
$7M
3
3
$3M
$6.72M
$8.46M
2011
0
$13.39M
2012
NOTABLE DEALS IN 2013
$3M
Seed
$1.16M
Seed
$1M
Seed
$1.35M
Seed
NOTABLE INVESTORS
2013
Deal Count
$0M
Total Funding
MARKET INSIGHT*: 0% of people ages 50-64 take at least two medications
7
and 87% of people 65 and older take at least two medications
*Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights
Published: January 14, 2014
10
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights

12. Emergency Detection and Response
2013 Activity
Early-Stage
Mid-Stage
Late-Stage
Second highest proportion of early-stage funding at 85%
Deal Count Total Funding
Total Funding
Deal Count
11
12
$40M
NOTABLE DEALS IN 2013
HotDot
9
8
$30M
6
$20M
4
3
0
$21M
2010
5
$10M
$28M
2011
Deal Count
$40M
$30M
$4M
Series A
$3.19M
Series A
$2.5M
Seed
$7.3M
Series B
NOTABLE INVESTORS
$0M
2012
2013
Total Funding
MARKET INSIGHT*: 40-70% of the 75+ population and 10-30% of the 50-74 population would be
interested in emergency detection or response services
*Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights
Published: January 14, 2014
11
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights

13. Behavioral and Emotional Health
2013 Activity
Early-Stage
Mid-Stage
Venture-Stage
Highest proportion of early-stage deals at 86%
Deal Count Total Funding
Total Funding
Deal Count
20
21
$80M
NOTABLE DEALS IN 2013
17
15
$60M
$9.7M
Series A
$5M
Series A
$3M
Series A
$2M
Series A
11
10
$40M
6
5
0
$20M
$13M
2010
$55M
2011
Deal Count
$75M
$41M
NOTABLE INVESTORS
$0M
2012
2013
Total Funding
MARKET INSIGHT*: Estimates predict 10-30% of the 50+ population would be interested in a
behavioral or emotional health solution
*Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights
Published: January 14, 2014
12
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights

14. Physical Fitness
2013 Activity
Early-Stage
Mid-Stage
Late-Stage
Venture-Stage
Second highest proportion of earlystage deals at 79%
Deal Count Total Funding
Deal Count
Total Funding
40
$150M
34
38
30
$113M
20
$75M
13
10
0
$38M
6
$23M
2010
$70M
2011
Deal Count
$137M
NOTABLE DEALS IN 2013
$166M
$43M
Series D
$23M
Series B
$14.5M
Series B
$18M
Series A
NOTABLE INVESTORS
$0M
2012
2013
Total Funding
MARKET INSIGHT*: ive-year total revenues as high as $1.7 billion or as low as $1.1
F
billion
*Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights
Published: January 14, 2014
13
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights

15. Diet and Nutrition
2013 Activity
Early-Stage
Mid-Stage
Late-Stage
Largest year-over-year growth in funding at 208%
Deal Count Total Funding
Deal Count
Total Funding
15
15
$70M
NOTABLE DEALS IN 2013
12
11
$53M
10
7
8
$35M
$18M
4
0
$17M
2010
$27M
2011
Deal Count
$23M
$70M
$30M
Series A
$1.52M
Seed
$850K
Seed
NOTABLE INVESTORS
$0M
2012
2013
Total Funding
MARKET INSIGHT*: ee-based diet and nutrition management services and
F
technology/software licensing fees will be the two dominant
revenue models for the diet and nutrition market
*Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights
Published: January 14, 2014
14
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights

16. Navigating the Healthcare System
Most actively funded opportunity at 100 deals and
$492M in funding
2013 Activity
Early-Stage
Mid-Stage
Late-Stage
Venture-Stage
Deal Count Total Funding
Total Funding
Deal Count
100
100
80
$500M
$400M
63
60
NOTABLE DEALS IN 2013
$68M
Venture Round
$40M
Series A
$6M
Series A
$2.1M
Series A
$300M
40
40
$200M
NOTABLE INVESTORS
20
0
14
$130M
$100M
$280M
$271M
$492M
$0M
2010
2011
2012
2013
Deal Count
Total Funding
MARKET INSIGHT*: ee-based case assistance service and advertising sales will be the
F
two dominant revenue models for the care navigation market
*Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights
Published: January 14, 2014
15
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights

17. 2013 Activity
Aging with Vitality
Early-Stage
Mid-Stage
Late-Stage
Highest proportion of mid-stage funding at
46%
Deal Count
Total Funding
40
40
Deal Count Total Funding
37
$200M
$150M
30
19
20
$100M
12
10
0
$50M
$50M
2011
$136M
2011
Deal Count
$143M
$177M
NOTABLE DEALS IN 2013
$31M
Series A
$30M
Series B
$8.4M
Series C
$10M
Series A
NOTABLE INVESTORS
$0M
2012
2013
Total Funding
MARKET INSIGHT*: he Affected Population of this market hit 101 million at the end of
T
2012 and will reach 113 million by 2018
*Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights
Published: January 14, 2014
16
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights

18. Vital Sign Monitoring
2013 Activity
Early-Stage
Mid-Stage
Late-Stage
Venture-Stage
Largest median deal size at $3.69M
Deal Count Total Funding
Deal Count
Total Funding
50
$375M
NOTABLE DEALS IN 2013
46
40
$300M
$62M
Series F
34
$32M
Series C
$20M
Series D
$15M
Series B
$225M
30
20
20
$150M
14
$75M
10
$228M
$136M
$126M
NOTABLE INVESTORS
$366M
$0M
0
2010
2011
Deal Count
2012
2013
Total Funding
MARKET INSIGHT: An estimated 78 million consumers 50+ have at least
one chronic condition
*Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights
Published: January 14, 2014
17
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights

19. VTIAL SIGN
MONINTORING
AGING WITH
VITALITY
The nine areas present vast emerging
market opportunities
EMERGENCY DETECTION
AND RESPONSE
AGING WITH
VITALITY
VTIAL SIGN
MONINTORING
AGING WITH
VITALITY
MEDICATION
MANAGEMENT
SOCIAL ENGAGEMENT
BEHAVIORAL AND
EMOTIONAL HEALTH
Third highest year-overSOCIAL
ENGAGEMENT
VTIAL SIGN
year growth in median
MONINTORING
size deal value at 120%
DIET AND
NUTRITION
BEHAVIORAL AND
EMOTIONAL HEALTH
Newest market
opportunity in 50+
PHYSICAL
FITNESS
PHYSICAL
FITNESS
EMERGENCY DETECTION
AND RESPONSE
DIET AND
NUTRITION
DIET AND
NUTRITION CARE
NAVIGATION
PHYSICAL FITNESS
AGING WITH VITALITY
Second highest proportion
Highest proportion of mid-
of early-stage deals at 79%
VTIAL SIGN
MONINTORING
VTIAL SIGN
MONINTORING
stage funding at 46%
EMERGENCY DETECTION
AND RESPONSE
EMERGENCY DETECTION
AND RESPONSE
PHYSICAL
FITNESS
AGING WITH
VITALITY
VTIAL SIGN
MONINTORING
DIET AND
NUTRITION
MEDICATION
MANAGEMENT
BEHAVIORAL AND
EMOTIONAL HEALTH
BEHAVIORAL AND
EMOTIONAL HEALTH
Most actively funded
CARE
opportunity
NAVIGATION
at 100 deals and $492M
PHYSICAL
FITNESS
BEHAVIORAL AND
EMERGENCY DETECTION
EMOTIONAL HEALTH
AND RESPONSE
SOCIAL
ENGAGEMENT
MEDICATION
MANAGEMENT
MEDICATION
MANAGEMENT
SOCIAL
ENGAGEMENT
NAVIGATING THE
HEALTHCARE SYSTEM
Highest proportion of
early-stage deals at 86%
SOCIAL
ENGAGEMENT
MEDICATIONWITH
AGING
VITALITY
MANAGEMENT
AGING WITH
VITALITY
EMERGENCY DETECTION
AND RESPONSE
EMERGENCY DETECTION
AND RESPONSE
CARE
NAVIGATION
MEDICATION
MANAGEMENT
AGING WITH
VITALITY
VTIAL SIGN
MONINTORING
EMERGENCY
DETECTION AND
RESPONSE
ENGAGEMENT
funding at 85%
Published: January 14, 2014
VITAL SIGN
MONITORING
DIET AND NUTRITION
Second highest
SOCIAL
SOCIAL
proportion of early
ENGAGEMENT
CARE
NAVIGATION
CARE
NAVIGATION
DIET AND
NUTRITION
DIET AND
NUTRITION
MEDICATION
MANAGEMENT
Largest year-overPHYSICAL
FITNESS
year growth in AND
PHYSICAL
BEHAVIORAL
FITNESS
EMOTIONAL HEALTH
funding at 208%
AGING WITH
VITALITY
Largest median deal
size at $3.69M
VTIAL SIGN
MONINTORING
EMERGENCY DETECTION
AND RESPONSE
SOCIAL
ENGAGEMENT
DIET AND
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights
NUTRITION
18
N

20. Vast 50+ Market Opportunities
The nine health innovation
frontiers represent a
vast and under-addressed
market opportunity.
AGING WITH
VITALITY
MEDICATION
MANAGEMENT
Breakthrough technologies,
innovative services, and
disruptive business models will
benefit more than 100 million people
50+ and represent $20 billion in
revenue by 2018.
BEHAVIORAL AND
EMOTIONAL HEALTH
Source: Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights
Published: January 14, 2014
SOCIAL
ENGAGEMENT
19
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights

21. Digital Health and
50+ Market Snapshot
2013 Median Round Size
$15M
$11M
MARKET
Digital Health
Wellness
DEAL COUNT
FUNDING
MEDIAN DEAL
$8M
440 575
$2.03B $2.82B
$1.29M $1.40M
$4M
50+
186 248
$722M $1.15B
$1.24M $1.30M
$0M
Seed
Series A Series B Series C Series D Series E
Digital Health and Wellness
50+
50+ OPPORTUNITY
DEAL COUNT
FUNDING
MEDIAN DEAL SIZE
Social Engagement
27
31
$105M $149M
$560K $1.23M
Medication Management
10
13
$6.72M $8.46M
$190K $432K
Emergency Detection Response
9
12
$40M $30M
$2.75M $2.40M
Behavioral and Emotional Health
17 21
$75M $41M
$1.09M $845K
Physical Fitness
34 38
$136M $166M
$2.58M $1.58M
Diet and Nutrition
15 12
$23M $70M
$1.10M $845K
Navigating the Healthcare System
63
$271M $492M
$1.70M $1.35M
Aging with Vitality
40 37
$143M $177M
$915K $1.90M
Vital Sign Monitoring
34
$126M $366M
$1.27M $3.69M
Key: 2012 | 2013
Published: January 14, 2014
100
46
20
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights

22. Methodologies
The data presented herein is from StartUp Health
Insights, which was gathered from public non-grant
funding information from SEC filings, company press
releases, CrunchBase, AngelList, and other news
sources as of January 3, 2013. The data spans from
January 1, 2010 through December 31, 2013.
The funding stages are categorized as follows:
Early-Stage: Incubator, Seed, Series A
Mid-Stage: Series B C
Late-Stage: Series D, E F
Venture-Round: Stage not disclosed publicly
The 50+ health investment sector, as defined by AARP, is comprised of the following market opportunities
and some of their respective needs that are addressed:
MARKET OPPORTUNITY
EXAMPLES OF NEEDS ADDRESSED
Social Engagement
Staying connected socially
Keeping mobilized
Stimulating intellect
Medication Management
Managing multiple medications
Preventing in-home accidents
Sharpening memory
Emergency Detection Response
Detecting falls
Sending alerts when lost
Preventing in-home accidents
Behavioral and Emotional Health
Stress reduction
Receiving divorce/grief support
Managing life phase transitions
Physical Fitness
Improving muscle strength
Age-appropriate exercise
Maintaining healthy weight
Diet and Nutrition
Eating healthy and portion control
Maintaining a healthy weight
Reducing bad cholesterol
Navigating the Healthcare System
Managing healthcare costs
Evaluating quality of care
Plan for end of life care
Aging with Vitality
Aiding in memory and cognition
Improving or aiding vision
Improving or aiding hearing
Vital Sign Monitoring
Keeping blood pressure in range
Detecting skin problems
Improving sleep quality
Some deals (slides 9-17) may represent more than one sector, and as such, may be included in multiple
categories. However, neither the aggregate data on the “digital health and wellness” industry (slides
1-2) nor the “50+” industry (slides 4-7) include double counting.
Published: January 14, 2014
21
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights

23. About
AARP’s vision is to stimulate innovation and
entrepreneurship in the market place around
breakthrough products, experiences, and business
models for health technologies benefiting the
50+ market.
Startup Health, a global startup platform to
accelerate health and wellness innovation,
represents a new model for helping entrepreneurs
succeed in the health sector. StartUp Health is on
a mission to inspire, educate, and provide access
for 1,000 digital health startups to reimagine and
transform healthcare by 2020.
22
Published: January 14, 2014
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insights

24. Digital Health
Insights Report for
the 50+ Market
startuphealth.com/insights
Published: January 14, 2014
A REPORT PREPARED FOR