top 12 venture capital firms funding the 50+ market
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Report takes a closer look at the top venture capitalists in 50+ investing in Digital Health and the areas and the areas with health they like to invest in.TRANSCRIPT
The Top 12 Venture Capital Firms Funding the 50+ Market
A REPORT SPONSORED BY
Published: May 7, 2014 A StartUp Health Insights Report. Comprehensive funding data available at startuphealth.com/insights
Published: May 7, 2014 A StartUp Health Insights Report. Comprehensive funding data available at startuphealth.com/insights
New digital health apps and wearable devices for the young get the lion's share of media attention. But entrepreneurs and investors investing with the 50+ market in mind are focusing on a big — and growing — opportunity. !Baby Boomers make up 44% of the US population and more than 10,000 enter the 50+ demographic daily. Collectively, they spend $3.5 trillion a year. By 2018, breakthrough technologies, innovative services and disruptive business models will benefit more than 100 million people 50+ and represent $20 billion in revenue in the US alone. !In December, StartUp Health and AARP released the first-ever digital health insights funding report evaluating the 50+ market, highlighting the encouraging rise of health innovation among a growing population with increased medical needs. This report takes a closer look at the top venture capitalists making investments that impact the 50+ population and the hottest areas of investment. Already, some of the country's top venture capitalists are making big investments in companies relevant to the 50+ market. And our data indicates that the trend may just be beginning. Take a look!
Source: Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights
Background
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A StartUp Health Insights Report. Comprehensive funding data available at startuphealth.com/insights Published: May 7, 2014
$0B
$1B
$1B
$2B
$3B
0
150
300
450
600
2010 2011 2012 2013
Total Deal Count Total Funding
$2.79B$2.22B$1.51B$1.05B
527
395
219
128128
219
395
527
Since 2010, digital health and wellness investment has grown from $1.05B to $2.79B in 2013
Deal count more than quadrupled from 128 to 527
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A StartUp Health Insights Report. Comprehensive funding data available at startuphealth.com/insights Published: May 7, 2014
$1.6B
$453M
$440M
$888M
$128M
$159M
$222M
$143M
$109M
$177M
San Francisco Bay Area and the Northeast lead digital health funding activity with more than 41% of total funding from 2010-2013
$113M
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A StartUp Health Insights Report. Comprehensive funding data available at startuphealth.com/insights Published: May 7, 2014
Though the number of software-only digital health companies more than quadrupled, funding in devices and wearables grew 102% from 2012 to 2013, accounting for 32% of all digital health investment
$0.0B
$0.5B
$1.0B
$1.5B
$2.0B
2010 2011 2012 2013
$1.9$1.8
$1.2
$0.5
$0.9
$0.4$0.3
$0.5
Devices and Wearables Software Only
125
250
375
500
2010 2011 2012 201339 48
104122
Devices and Wearables Software Only
Number of Digital Health Startups* Total Digital Health Funding*
5*Due to market overlap, some values are subject to double counting
405
291
171
89
A StartUp Health Insights Report. Comprehensive funding data available at startuphealth.com/insights Published: May 7, 2014
SocialEngagement
PhysicalFitness
MedicationManagement
Aging withVitality
NavigatingThe Healthcare
System
Vtial SignMonintoring
Behavioral andEmotional Health
Diet andNutrition
Emergency Detectionand Response
Traditional 50+ Market50+ referred only to
the aging market
Opportunities in the 50+ Market
New Focus of the 50+ Market
Preventative medicine is a growing focus among the 50+ market, leading to increased opportunity across the nine areas of digital health and wellness innovation
6
Vital Sign Monitoring
A StartUp Health Insights Report. Comprehensive funding data available at startuphealth.com/insights Published: May 7, 2014
$0B
$0B
$1B
$1B
$2B
0
100
200
300
400
2010 2011 2012 2013
Total Deal Count Total Funding
$1.48B$0.93B$0.77B$0.56B
Funding in companies relevant to the 50+ market rose 59% from $0.93B in 2012 to $1.48B in 2013 and represents 53% of all digital health investment dollars
7
67
130
249
311
A StartUp Health Insights Report. Comprehensive funding data available at startuphealth.com/insights Published: May 7, 2014
Investments related to the 50+ market continue to grow at the pace of investments in the larger digital health and wellness market
50+ market investments as percentage of total investments in digital health & wellness
2010 2011 2012 2013
40%
55%
70%
2010 2011 2012 2013
53% 51%42%
53%52%
59% 63% 59%
Deal Count Funding
Tota
l Fun
ding
$0.56B
$1.05B
$0.77B
$1.51B
$0.93B
$2.22B
$1.48B
$2.79B
Digital Health & Wellness Market 50+ Market
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A StartUp Health Insights Report. Comprehensive funding data available at startuphealth.com/insights Published: May 7, 2014
From 2010 to 2013, the 50+ areas that received the greatest total amount of VC funding were aging with vitality, vital sign monitoring and care navigation
Substantial funding in these markets is attributed to an emphasis on preventative medicine, empowering the patient to own their care and the changing healthcare regulatory landscape
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Tota
l Fun
ding
from
201
0-20
13
Medical Management
Diet and Nutrition
Emergency Detection and Response
Behavioral and Emotional Health Aging With
VitalityPhysical Fitness
Vital Sign Monitoring
Care Navigation
Social Engagement
$12M$287M $397M $405M $501M
$1.05B$1.27B
$1.95B
$2.5B
A StartUp Health Insights Report. Comprehensive funding data available at startuphealth.com/insights Published: May 7, 2014
103100
75
56
38252220
3
In the 50+ market, VC firms are mostly interested in vital sign monitoring, care navigation and social engagement
Num
ber
of V
Cs
Inve
stin
g in
Mar
ket
2010
-201
3
10
Medical Management
Diet and Nutrition
Emergency Detection and Response
Behavioral and Emotional Health
Aging With Vitality
Physical Fitness
Vital Sign Monitoring
Care Navigation
Social Engagement
Interest in these markets is primarily attributed large market opportunities and clearly-defined business models
A StartUp Health Insights Report. Comprehensive funding data available at startuphealth.com/insights Published: May 7, 2014
Top 12 Venture Capital Firms Funding the 50+ Market
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A StartUp Health Insights Report. Comprehensive funding data available at startuphealth.com/insights Published: May 7, 2014
Many of the notable deals since 2010 were syndicated investments among the top VCs
$40M Series A
$24M Series B
$23M Series B
$18.6M Series C
$15.2M Series B
$9.3M & $15M Series C & D
$15M Series B
$10.8M & $9.3M Series C & E
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A StartUp Health Insights Report. Comprehensive funding data available at startuphealth.com/insights Published: May 7, 2014
Since 2010, physical fitness and care navigation have seen the most deal action from the top investors funding the 50+ market
Physical Fitness
Aging with Vitality
Care Navigation
Diet and Nutrition
Vital Signs Monitoring
Behavioral and Emotional Health
Emergency Detection and Response
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A StartUp Health Insights Report. Comprehensive funding data available at startuphealth.com/insights Published: May 7, 2014
Most VCs investing in companies relevant to the 50+ market are funding early-stage innovation
Fund
ing
by R
ound
in t
he 5
0+ M
arke
t
Seed A B C D E
+ + +
+ + + +
+ + +
+ + + + + +
+ + +
+ + + + +
+ + +
+ + +
+ + + +
+ + + + +
+ + +
+ + + +
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A StartUp Health Insights Report. Comprehensive funding data available at startuphealth.com/insights Published: May 7, 2014
$2M Seed
$3.5M Series A
$2.5M Series A
$2.25M Seed
$2M Seed
$1.55M Seed
$600k Seed
$6M Series A
$4.25M Seed
$5.7M Series A
From 2010-2013, half of all deals relevant to the 50+ market were Seed or Series A rounds
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Published: May 7, 2014 A StartUp Health Insights Report. Comprehensive funding data available at startuphealth.com/insights
• Aging with vitality, vital sign monitoring and care navigation received the greatest amount of digital health VC funding from 2010 to 2013 !
• Physical fitness and care navigation have seen the most deal action (by volume) from the top investors funding the 50+ market since 2010
!• Vital sign monitoring, care navigation and social engagement have the greatest number of
interested VCs among the 50+ market opportunities !• Funding in companies relevant to the 50+ market represents 53% of all digital health
investment dollars and is growing !
• Seed or Series A deals comprised half of the deals from 2010-2013 in companies related to the 50+ market
Key Takeaways
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A StartUp Health Insights Report. Comprehensive funding data available at startuphealth.com/insights Published: May 7, 2014
MethodologiesThe 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 April 14, 2014. The data spans from January 1, 2010 through December 31, 2013. !Some of the deals presented in sub-sector analyses may have been subject to double counting because of overlapping markets. VCs included in the top list comprised those that invested in the most deals within the 50+ market from 2010-2013. !The 50+ health investment sector, as defined by AARP, includes all companies that may be relevant to the market, even if they apply to a larger market as well. It comprises 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 & 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
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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.
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The Top 12 Venture Capital Firms Funding the 50+ Market