health 2.0 quarterly report (q3 2015)

HEALTH 2.0 QUARTERLY REPORT :: Q3 2015

QUARTERLYREPORTS


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INTERNATIONAL MONEYThis quarter saw an influx of capital to foreign ventures like India-based companies Practo ($90M), Portea Medical ($37.5M) and Lybrate($10.2M). China-based Sleepace ($7M) and Israel-based TytoCare ($11M) were other big winners. The hottest ticket was China-based Guahao, an online health care service provider that raised a jaw-dropping $394M – one of the biggest deals our industry has seen.

DO HOSPITALS CARE?More hospitals and health systems are beginning to seriously dive into the world of Health 2.0. Pilot Health Tech NYC is in its third year, while the Office of the National Coordinator has rolled out the program nationally. A number of hospitals such as Intermountain, Providence, and Cedars Sinai have also established venture funds or incubators as a way to both invest in health tech as well as to improve their services.

ADVOCACY UNCERTAINTYAccolade and Better are two companies that combine(d) technology and high-touch human services to help people navigate the health care system. Accolade closed a $22.5M funding round with a health plan oriented model, but Better, which attempted a B2C model, shut its doors in late October.

CHRONIC CARE MANAGEMENT STARTS PAYINGMedicare now provides nearly $500 annually per qualified patient for 20 minutes+ of non-face-to-face chronic care management activities. Several health technology companies are now designing around the new federal payment scheme. Conversa, CareSync and eClinicalWorks have all built features to help providers either document or actually deliver these services and capture the new payment.

Things We Care About, Q3 2015

H


1857CONSUMER FACING

1000PROFESSIONAL

FACING

342PATIENT PROVIDER COMMUNICATION

441DATA, ANALYTICS,

& EXCHANGE

3640ALL COMPANIES

Health 2.0 tracks companies in the Health 2.0 Sourcedatabase according to one of four categories, one or more of nineteen sub-segments, and any number of additional tags. This categorization schema, developed in 2011, is far more rigorous that any we’ve seen and consistently lets us distinguish apples from oranges in a particularly bountiful space.

HEALTH 2.0 SOURCE surged ahead this

quarter, adding 274 companies overall. The Consumer Facing category added 119

companies, the Professional Facing category

added 72 companies, the Patient-Provider

Communication category added35 companies, and the Data, Analytics, and

Exchange category added 48 companies.

Health 2.0 Source: Total Companies By Category

HEALTH 2.0 SOURCE COMPANIES BY CATEGORY, OCTOBER 2015


The lion’s share is still in North America, with 78% of digital health

companies located there. However, a strong contingent belongs to Europe with 15%, as emerging sectors in Latin America, Asia and

Africa continue to expand.

AS THE HEALTH 2.0 COMMUNITY grows around the world, it’s

being reflected in the Source database. Here’s a map of the world showing the distribution of companies working in this space.

Health 2.0 Around the World


2011

1.0 B 1.6 B 2.2 B

4.6 B

20122013

2014

2015

FUNDING FOR THE HEALTH 2.0 space has

ticked up yet again in the third quarter. $1.5B was invested from July through September,

while year to date funding hits $3.8B.

Funding Ticks Up, Goes Global

Funding for the year is on track to top 2014’s total investment, potentially making 2015 another monster year for health technology. We’ve followed the funding streams around the globe and witnessed health technology investment go global.

HEALTH 2.0 ANNUAL FUNDING

3.8 B


2.4BCONSUMER FACING

THE CONSUMER FACING category continued to lead in

venture funding, boosted by the massive $394M round that China’s Guahao raked in. The potential for online care

services is the key driver of these numbers.

Consumer Facing Funding STILL On Top

654MPROFESSIONAL

FACING

300MPATIENT PROVIDER

COMMS

444MDATA, ANALYTICS,

& EXCHANGE

Q2: 297M

Q1: 163MQ1: 231M

Q2: 76M

Q1: 102M

Q2: 102M

Q1: 166M

Q2: 1.05B

Two of the biggest deals this quarter:

*100M*394M

2015 FUNDING BY CATEGORY AND QUARTER

Q3: 191MQ3: 137M Q3: 96M

*Q3: 1.2B


THE TOP DEALS of Q3 2015 totaled to

$1.05B and represent 75% of total funding this quarter. Of the top deals, 50% of funds

went to international companies.

Hot Stuff: Top Funding Deals in Q3, 2015

CONSUMER FACING PROFESSIONAL FACING

PATIENT PROVIDER COMMUNICATION

DATA, ANALYTICS, & EXCHANGE

TOP FUNDING DEALS OF Q3 2015

Three of the top deals are from our Chinese and Indian neighbors abroad. Guahao, Practo and Portea are all providing services to the most populous nations on Earth, so maybe it’s not so surprising they closed huge rounds this quarter. We expect international funding to heat up even more in the future. Helix’s $100m launch and 23&Me’s sizable round reflect the promise of the consumer genomics market. Kareo and Modernizing Medicine’s big raises are a nod to the provider-facing needs for streamlined access to EHRs, especially for smaller practices that can’t afford enterprise software.

50M

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90M

100M

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400 M

HEALTH 2.0 QUARTERLY REPORT :: Q3 2015-100 0 100 200 300 400 500 600 700 800 900

B2B-Decision Support Analytics

Privacy & Identity

Data Utility Layer

B2B-Administrative Tools

B2B-Revenue Collection & Management

B2B-Clinician Workflow

Professional Knowledge Exchanges

Patient-Provider Communication

Provider Search

Coaching & Advisory Services

Personal Health Assessment & Diagnostic Testing

Clinical Trials Search & Recruitment

Gaming

Financial Management

Patient Communities

Search

Wellness

Content

Self-Management Tools & Trackers

Interestingly, analytics has made some significant production additions this quarter, which may be the fruits of this category’s $231M Q1 funding round. Health trackers and wearables continue to comfortably lead the product pack.

THIS GRAPH SHOWS the current break down

of products tracked in Health 2.0 Source by segment. The lighter color at the end of each

bar represents growth in that segment during

Q3 2015.

If You Remember One Thing: Products Are Not Companies, Companies Are Not Products

CONSUMER FACING

PROFESSIONAL FACING

PATIENT PROVIDER COMMUNICATION

DATA, ANALYTICS, & EXCHANGE

TOTAL NUMBER OF PRODUCTS BY SEGMENT, HEALTH 2.0 SOURCE, SEPTEMBER 2015


ABOUT HEALTH 2.0 MARKET INTELSince 2007, Health 2.0 has catalyzed, tracked, and showcased the web, SaaS, cloud, mobile, and sensor revolution in health information technology. Our unique industry positioning and experience has given us an unrivaled depth of knowledge in the Health 2.0 space.

Health 2.0 offers a comprehensive set of Market Intelligence offerings that range from this quarterly data release to custom market research reports, and subscription access to the Health 2.0 Source Database. The Health 2.0 Source database serves as the foundation of our intelligence products and includes detailed data on more than 3,500 companies and 4,500 products. To learn more about Health 2.0 Market Intelligence offerings, please visithealth2con.com/marketintel/market-intelligence-bundle or email [email protected]

ABOUT THE QUARTERLY REPORTThe Quarterly Report represents a summary set of data that explains where industry funding is going, which product segments are growing fastest, and where new company formation is happening. Health 2.0’s precision and clarity when it comes to market segmentation and product information make this quarterly release the cream of the freebie crop.

This report is provided for informational purposes and was prepared in good faith and good fun. This report is a proprietary aggregation of publicly and some privately available data and shall not be reproduced in a different format without written consent of Health 2.0

QUARTERLYREPORTS

QUARTERLY REPORT CONTRIBUTORS

Matthew Holt Co-Chairman Prerna Anand Project ManagerKim Krueger Research Analyst Rachael Charbonneau Graphic Designer


ABOUT Health 2.0 is the premiere showcase and catalyst for the advancement of new health technologies. Through a global series of conferences, thought leadership roundtables, developer competitions, pilot programs, and leading market intelligence, Health 2.0 drives the innovation and collaboration necessary to transform health and health care.

For more information visit health2con.com


health 2.0 quarterly report (q3 2015)

Healthcare