StartUp Health Insights 2019 Q3 Report

®

2019 Q3

StartUp Health Insights

™

A year-to-date report on health innovation and the health moonshots transforming the world.

1

ABOUT STARTUP HEALTH INSIGHTS™

Report Authors Nicole Clark | Polina Hanin

StartUp Health collects and shares market insights because these data points tell a critical part of the health innovation story.

More than simply chronicling the flow of money, this report provides a glimpse into the overall progress of our health moonshots. The story beneath the top-line figures opens up new challenges as well as opportunities. Health moonshots require radical collaboration, so we encourage you to dig into this report and then bring your own insights to the table at hq.startuphealth.com.

Contributors Anne Dordai | Jennifer Hankin Nicole Kinsey | Tara Salamone

Issue 4

StartUp Health Magazine

Design Logan Plaster

--© 2019 StartUp Health Holdings, Inc. StartUp Health and Health Transformer and associated logos are registered trademarks of StartUp Health LLC.

ABOUT STARTUP HEALTH StartUp Health is on a 30-year mission to collaborate with entrepreneurs to improve the health and wellbeing of everyone in the world. Since 2011, StartUp Health has been investing in a global army of entrepreneurs to achieve health moonshots and has the world’s largest health innovation portfolio with 300 companies across six continents and 24 countries.

--Join the movement at startuphealth.com Sign up to receive weekly funding insights at startuphealth.com/insider

1

STARTUP HEALTH INSIGHTS

Overview Health Innovation Funding Highlights

L

ast quarter, we reported that 2019 was shaping up to be The Year of the Patient. This quarter, while total funding has taken its typical post-summer dip, we’re pleased to see that the soul of the health revolution – the patient – is still a market priority (this quarter, $420M was invested into health innovation companies with a focus on patient empowerment). At $10.4B in funding year to date, we’re also on par to have the second most-funded year for health innovation, ever. Here are our topline takeaways:

KEY MARKETS SEE SPIKES IN FUNDING In the first three quarters of 2019, health innovation companies raised $10.4B. As is typical of this time of year, the third quarter saw a modest dip in funding. In fact, in seven of the past nine years, the third quarter was either flat or down from its preceding quarter.

But this quarter offered multiple bright spots and exceptions.

This quarter, funding in support of population health saw a jump of 200%, the highest of any function we track, bringing in over $720M in Q3 and $1.2B for the year. The Women’s Health and Access to Care Moonshots continue to enjoy a steady surge of capital for the year – $4.5B YTD for Access to Care and $295M YTD for Women’s Health – along with upticks in deal volume. This comes despite a politically charged time for both women’s health rights and global debates over governmentsponsored healthcare models.

The Addiction Moonshot, which saw a funding increase of 223%. Two health moonshots were up on QoQ deal count: 2

StartUp Health Insights

Cancer with a 113% increase in volume and Addiction with a 100% jump.

Women’s Health continued to lead from a YoY outlook, with funding up by 66%, and 65% more deals than this time last year. Access to Care is historically our most lucrative health moonshot by way of funding and deal count and remained so in Q3, raking in $1.5B across 101 deals.

FUNDING FOR WOMEN’S AND CHILDREN’S HEALTH HELPS NARROW INNOVATION GAP Not surprisingly, we continue to see high percentages of early stage deals in the Women’s Health and Children’s Health Moonshots (71%). This is important evidence of an increase in R&D or product development in two arenas where both have historically been lacking. We’re hopeful that this surge in funding will help narrow the health innovation gap for these patient populations.

CANCER AND MENTAL HEALTH FUNDING MATURES Even though deal counts for Cancer (34 YTD) and Mental Health & Happiness (45 YTD) are less than our broaderdefined moonshots like Access to Care (259 YTD), these two had the largest proportion of late-stage deals.

This is good news. A concentration of Series D rounds and later indicate that the entrepreneurs fueling these health moonshots are taming the learning curve. Digital innovations like Calm’s meditation app and DNAnexus’ genomics research platform are maturing out of development mode and being brought to a global market.

ADOPTING POPULATION HEALTH BEST PRACTICES Population health continued to be an increasingly-funded function, with a 22% increase in deals over the same quarter last year. To date this year, it’s brought in $1.2B, mainly due to Babylon Health’s $500M round. This needs to be more than a fleeting trend. Population health initiatives can help direct large health systems – which are historically keepers of unique and timely data on the most vulnerable patients – to take a more strategic direction in how they manage health at a community level CONCLUSION The new norm of quarterly megadeals, a break in the IPO drought, along with the typical uptick in health innovation capital during Q4, suggest that 2019 will continue strong and become the second most-funded year for health innovation, ever.

STARTUP HEALTH INSIGHTS // THE MARKET

Funding THE STORY

This year to date, health innovation companies have raised $10.4B, trailing 2018 by 10%. Year over year, deal counts trailed by 13%. A majority of third quarter deals were early-stage, producing a lower median deal size of $4.2M, when compared to $8.1M the same time last year.

In the U.S., the research health function produced four deals in our top deals list, while non-U.S. metro areas focused on population health and refining clinical workflows.

We believe the year will end strong, and likely be on par with 2018’s record-

Total Funding

869

Largest U.S. Deals [Q3]

$14.6B 776

Q1 Q2

Q3 Q4

Company

679 641

DEAL COUNT

610 565

556

$11.7B

474

$10.4B YTD

287

$4.9B $2.8B $8.2B

152

breaking numbers. For two reasons: 1) In the last two years, funding spiked from October to November, surpassing YTD totals from prior years; and 2) with quarterly mega deals becoming a new norm in this maturing market, we expect to see several Q4 $100M+ raises top off funding.

Amount

Function

1 Capsule

$200M

Patient Empowerment

2 Freenome

$160M

Research

3 Recursion Pharma

$121M

Research

4 VillageMD

$100M

Population Health

5 HiFiBiO Therapeutics

$67M

Research

6 One Drop InforMed Data Systems

$40M

Patient Empowerment

7 Notable Labs

$40M

Clinical Workflow

8 Insilico Medicine

$37M

Research

9 Exo Imaging

$35M

Personalized Health

$35M

Wellness

10 Ginger.io $2.5B

$7.1B

Largest Non-U.S. Deals [Q3]

$6.2B

Company

$2.4B $2.0B $1.8B $2.3B $2.1B

$2.2B $773M

$1.1B

$714M $538M

2019 YTD

2018

2017

2016

2015

2014

2013

2012

2011

2010

$250M

Amount

Function

1 Babylon Health

$550M

Population Health

2 AllinMD

$100M

Admin Workflow

3 Healthy.io

$60M

Biometric Data Acquisition

4 Intorem S.A.

$43M

Research

5 AlayaCare

$39M

Clinical Workflow

6 Synyi

$36M

Clinical Workflow

7 AMBOSS

$33M

Education + Content

8 Huimei Healthcare

$30M

Admin Workflow

9 Keranova

$26.5M

Clinical Workflow

10 MDClone

$26M

Population Health

Source: StartUp Health Insights | startuphealth.com/insights. Note: Report based on publicly available data through 9/30/19 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. Companies tracked in StartUp Health Insights may fall under multiple moonshots and therefore will be represented throughout the report.

3

STARTUP HEALTH INSIGHTS // THE MARKET

Investors

Total Investors [YoY]

THE STORY

With 1,061 total investors, 2019 investor count so far is 87% of the total 2018 number. StartUp Health held the top place as the most active investor with 13 deals YTD. In a single quarter, Khosla Ventures and F-Prime doubled their investments from H1 2019. With the exception of last year, since we started tracking health innovation funding in 2010, corporate VCs have been included in this list, with Optum Ventures and Echo Health Ventures making a reappearance. StartUp Health ranked as the most diverse investor, with eight of the 11 health moonshots represented this year, while Khosla Ventures and Y Combinator invested in seven. The Access to Care Moonshot held the top spot with the most investors for the year at 504, with Cost to Zero, the next largest pool of investors, trailing at 409.

1235

1219 1061

922 140

616

643

2014

2015

495

INVESTOR COUNT

299 120

80

40

2012

2013

# OF DEALS BY INVESTOR

2

3

4

2016

5

2017

6+

2018

2019 YTD

TOTAL UNIQUE INVESTORS

Most Active Investors [2019 YTD] re

2019 YTD Deals

2018 Total Deals

1 StartUp Health

13

10

2 Khosla Ventures

10

14

2 F-Prime Capital Partners

10

11

4 Y Combinator

8

7

4 GV

8

6

6 Optum Ventures

7

4

7 Echo Health Ventures

6

6

7 DCVC

6

5

7 Sequoia Capital

6

4

7 ARCH Venture Partners

6

4

7 Maverick Capital

6

4

7 Tencent

6

3

*StartUp Health does not lead rounds.

4

StartUp Health Insights

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Source: StartUp Health Insights | startuphealth.com/insights. Note: Report based on publicly available data through 9/30/19 on seed (incl. accelerator), venture, corporate venture, and private equity funding only.

Companies tracked in StartUp Health Insights may fall under multiple moonshots and therefore will be represented throughout the report.

STARTUP HEALTH INSIGHTS // THE MARKET

Hubs of Innovation

8

1

6

5

10

7

4

9

2

3

Most Active Metro Areas in the United States City/Region

Funds Raised 2019 YTD Deals

2018 Deals

1

San Francisco Bay Area

$2.7B

97

139

2

New York City

$1.2B

56

97

3

Boston

$734.3M

34

44

4

Chicago

$354.1M

16

13

5

Salt Lake City

$282.6M

6

3

6

Seattle

$145.5M

15

14

7

Denver

$118.8M

12

7

8

Los Angeles

$81.0M

18

29

9

Columbus

$75.2M

3

6

Boulder

$69.0M

3

--

10

THE STORY

As the year progressed, the San Francisco Bay Area, Boston and New York continued to hold their positions as the top three most funded U.S. cities. San Francisco is on track to meet, if not beat, its funding from last year. And other established health hubs like Chicago, Salt Lake City, Seattle and Columbus are already ahead of their 2018 totals. With one quarter to go, we’re excited to see whether Top 10 entrants from last year, like Nashville and Austin, will make an appearance on this list.

Source: StartUp Health Insights | startuphealth.com/insights. Note: Report based on publicly available data through 9/30/19 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. Companies tracked in StartUp Health Insights may fall under multiple moonshots and therefore will be represented throughout the report.

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STARTUP HEALTH INSIGHTS // THE MARKET

Hubs of Innovation

5

2

8

3

1

4

9

7

6

10

Most Active Non-U.S. Metro Areas City/Region

Funds Raised

2019 YTD Deals

2018 Deals

1

Beijing, China

$725.4M

10

20

2

Paris, France

$394.0M

8

7

3

Tel Aviv, Israel

$181.9M

12

10

4

Bangalore, India

$178.1M

7

15

5

London, U.K.

$129.9M

13

20

6

Guangzhou, China

$103.0M

2

3

7

Hangzhou, China

$100.0M

2

2

8

Warsaw, Poland

$93.5M

2

--

9

National Capital Region, India

$84.9M

6

13

10

Zhejiang, China

$80.0M

1

--

6

StartUp Issue 4HealthStartUp Insights Health Magazine

THE STORY

In Q3, four of the top ten metro areas were in China.

That’s worth noting given recent reports that the world’s second largest economy is expanding at its slowest pace since the 1990s. Beijing and Bangalore remained on par with last year’s Q3 funding, and other top cities like Paris and Tel Aviv are already ahead of last year’s totals. Beijing’s healthy spike in funding from last quarter tied it with London this quarter as the most-funded non-U.S. health hubs.

Source: StartUp Health Insights | startuphealth.com/insights. Note: Report based on publicly available data through 9/30/19 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. Companies tracked in StartUp Health Insights may fall under multiple moonshots and therefore will be represented throughout the report.

STARTUP HEALTH INSIGHTS

The Quest to Achieve Health Moonshots At StartUp Health, we believe that radical collaboration around audacious heatlh goals will change the world. Here are the health moonshots that we are currently working towards, and which we use to categorize the market.

Access to Care Moonshot Together we can deliver quality care to everyone, regardless of location or income

Women’s Health Moonshot Together we can improve the health of every woman, closing the gender gap

Cost to Zero Moonshot Together we can reduce the cost of care to “zero”

Children’s Health Moonshot Together we can ensure that every child has access to quality care

Cure Disease Moonshot Together we can rid the world of disease 259

End Cancer Moonshot Together we can end cancer as we know it

Nutrition & Fitness Moonshot Together we can ensure access to food, water and a healthy lifestyle

194

Brain Health Moonshot Together we can unlock the mysteries of the brain to improve health and wellness Mental Health & Happiness Moonshot Together we can connect mind, body and spirit in the pursuit of wellbeing Addiction Moonshot Together we can end addiction and the opioid epidemic Longevity Moonshot Together we can add 50 healthy years to every human life

2019 Q3 Funding by Health Moonshot (YTD) Deal Count

135

69

34

45

41 28

19

17

7

$4.5B

$3.6B

$2.9B

$1.0B

$295.1M

$95.3M

$937.8M

$244.3M

$82.8M

$444.1M

$1.7B

Access to Care

Cost to Zero

Cure Disease

End Cancer

Women’s Health

Children’s Health

Nutrition & Fitness

Brain Health

Addiction

Mental Health & Happiness

Longevity

Source: StartUp Health Insights | startuphealth.com/insights. Note: Report based on publicly available data through 9/30/19 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. Companies tracked in StartUp Health Insights may fall under multiple moonshots and therefore will be represented throughout the report.

77

STARTUP HEALTH INSIGHTS // HEALTH MOONSHOTS

Access to Care THE STORY

Funding for the Access to Care Moonshot continued to climb with a YoY increase of 20% in funding and a 34% increase in deal count. As the moonshot that represents the widest range of health functions, we were pleased to see a balance of early- to late-stage deals. 65% of deals YTD are early-stage and 30% are mid-stage, indicating that innovation is alive and well in this health moonshot. That funding majority was anchored by two Q3 mega deals, both of which made it into our top deals list, including Babylon Health’s $550M raise, whose deal accounts for 35% of total funding for this health moonshot.

2019 YTD

Funding Deal Count 72

69

$1.1B Q2 2018

$2.2B Q3 2018

Investment Spectrum

Number of Deals By Round*

How Funding Is Balanced Across 10 Functions 49

Series A

47

Series B

32

Series C

14

Series D

4

Series E or later

3

Under $1M

37

$1M–$5M

55

$5M–$10M

41

$10M–$25M

37

$25M–$50M

22

$50M–$100M

18

$100M+

5

$1.3B Q1 2019

$1.7B Q2 2019

$1.6B Q3 2019

2019 QUICK STATS DEALS

Deal Count 22 Deals ($295.9M)

Research

6 Deals ($128.4M)

Patient Empowerment

77 Deals ($1.2B)

259 MEDIAN DEAL SIZE

Biometric Data Acquisition

12 Deals ($195.5M)

Admin Workflow

38 Deals ($356.9M)

$6.8M

Clinical Workflow

43 Deals ($688.2M)

INVESTORS

Personalized Health

21 Deals ($451.6M)

Population Health

26 Deals ($866.7M)

504

9 Deals ($275.1M)

Education + Content

Frequency of Deal Size**

$1.2B Q4 2018

Wellness

Insurance

Dollars

58

51

Rounds Seed

Total Access to Care Funding 101 100

5 Deals ($40.8M)

Top Deals [2019 YTD] Company

Round Size

Function

01

Babylon Health

$550M

Population Health

02

Tencent Trusted Doctor

$250M

Personalized Health

03

Capsule

$200M

Patient Empowerment

04

Doctolib

$170M

Patient Empowerment

05

Waterdrop

$145M

Insurance

06

Hims

$100M

Patient Empowerment

MOST ACTIVE INVESTORS Ranking 1

Khosla Ventures

1

F-Prime Capital Partners

1

Tencent

4

Maverick Ventures

4

Pi Ventures

* Deals that were not associated with a specific round are not included in this particular breakdown. **Raises without a publicly disclosed dollar amount are counted in the total number of deals, but not represented in frequency of deal size analysis.

8 8

Source: StartUp Health Insights | startuphealth.com/insights. Note: Report based on publicly available data through StartUp Insights Issue 4HealthStartUp Health Magazine 9/30/19 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. Companies tracked in StartUp Health Insights may fall under multiple moonshots and therefore will be represented throughout the report.

STARTUP HEALTH INSIGHTS // HEALTH MOONSHOTS

Cost to Zero

2019 YTD

THE STORY

The Cost to Zero Moonshot mirrored Access to Care’s 15% YoY funding increase and is another health moonshot that boasts a strong culture of innovation – 59% of this moonshot’s deals were early-stage rounds.

As with many of the maturing health moonshots, around a third of the deals were mid-stage. Population health took the cake as the most funded health function under Cost to Zero for the quarter, while insurance was the highest funded function for the year thus far. And a closer look at deal flow showed rising digital insurance companies keeping the top spots, as VillageMD, a new primary care model, is the only company in the third quarter that broke into the YTD top deals for this moonshot.

Funding Deal Count 68

$875M Q2 2018

$1.2B Q3 2018

Number of Deals By Round*

How Funding Is Balanced Across 10 Functions

Series A

40

Series B

29

Series C

13

Series D

6

Series E or later

2

Frequency of Deal Size** Under $1M

19

$1M–$5M

43

$5M–$10M

29

$10M–$25M

33

$25M–$50M

23

$50M–$100M

12

$100M+

4

53

$1.1B Q4 2018

$1.5B Q1 2019

$1.4B Q2 2019

$670M Q3 2019

2019 QUICK STATS DEALS

Deal Count

Wellness

9 Deals ($281.0M)

Research

8 Deals ($157.2M)

194 MEDIAN DEAL SIZE

Patient Empowerment

20 Deals ($308.4M)

Biometric Data Acquisition

11 Deals ($190.1M)

Admin Workflow

57 Deals ($594.3M)

$9.2M

Clinical Workflow

55 Deals ($647.2M)

INVESTORS

Personalized Health

13 Deals ($197.0M)

Insurance

14 Deals ($1.0B)

Education + Content

1 Deal ($33.0M)

Top Deals [2019 YTD] Company

409

6 Deals ($153.1M)

Population Health

Dollars

70

45

Investment Spectrum 33

71

61

Rounds Seed

Total Cost to Zero Funding

Round Size

MOST ACTIVE INVESTORS Ranking 1

F Prime Capital Partners

Function

01

Clover Health

$500M

Insurance

1

Echo Health Ventures

02

Collective Health

$205M

Insurance

1

03

Waterdrop

$145M

Insurance

Maverick Ventures

04

Thrive Earlier Detection

$110M

Personalized Health

1 Edison Partners

05

Hims

$100M

Patient Empowerment

06

VillageMD

$100M

Population Health

* Deals that were not associated with a specific round are not included in this particular breakdown. **Raises without a publicly disclosed dollar amount are counted in the total number of deals, but not represented in frequency of deal size analysis.

Source: StartUp Health Insights | startuphealth.com/insights. Note: Report based on publicly available data through 9/30/19 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. Companies tracked in StartUp Health Insights may fall under multiple moonshots and therefore will be represented throughout the report.

99

STARTUP HEALTH INSIGHTS // HEALTH MOONSHOTS

Cure Disease THE STORY

The spike we saw in Q2 funding for Cure Disease ebbed to $832M, which is closer to the quarterly norm for this health moonshot. All health functions were represented under the moonshot this quarter, but research was the most-funded by far with a grand total of $1.2B raised YTD. That’s more than twice as much as the runner-up health function, clinical workflows ($416M YTD). Top Q3 deals fueling research came from cancer informatics companies like Freenome’s $160M and Recursion Pharmaceuticals $121M rounds. Cure Disease’s percentage of early-stage deals was the lowest across all health moonshots, and it had the highest median deal size at $12M.

2019 YTD

Funding Deal Count 62

$1.2B Q2 2018

$1.1B Q3 2018

Investment Spectrum

Number of Deals By Round*

How Funding Is Balanced Across 10 Functions 15

Series A

22

Series B

26

Series C

9

Series D

3

Series E or later

4

56

46

Rounds Seed

Total Cure Disease Funding

29

32

$977M Q4 2018

$691M Q1 2019

Under $1M

8

$1M–$5M

29

$5M–$10M

19

$10M–$25M $25M–$50M $50M–$100M $100M+

30 16 12 5

$832M Q3 2019

DEALS

Deal Count

Wellness

2 Deals ($55.2M)

Research

25 Deals ($1.3B)

Patient Empowerment

19 Deals ($383.1M)

Biometric Data Acquisition

21 Deals ($203.1M)

135 MEDIAN DEAL SIZE

4 Deals ($67.2M)

$12M

Clinical Workflow

29 Deals ($416.4M)

INVESTORS

Personalized Health

19 Deals ($295.8M)

Population Health

14 Deals ($187.9M)

Admin Workflow

2 Deals ($11.0M)

Round Size

MOST ACTIVE INVESTORS Ranking

Top Deals [2019 YTD] Company

389

--

Education + Content

Frequency of Deal Size**

$1.4B Q2 2019

2019 QUICK STATS

Insurance

Dollars

47

1

Arch Venture Partners

Function

01

Tempus

$200M

Research

2

F-Prime

02

Freenome

$160M

Research

2

GV

4

03

Beam Therapeutics

$135M

Research

Khosla Ventures

04

Recursion Pharma

$121M

Research

4

Y Combinator

4

DCVC

4

Illumina Ventures

05

Encoded Therapeutics

$104M

Research

06

BostonGene

$100M

Research

* Deals that were not associated with a specific round are not included in this particular breakdown. **Raises without a publicly disclosed dollar amount are counted in the total number of deals, but not represented in frequency of deal size analysis.

10 10

Source: StartUp Health Insights | startuphealth.com/insights. Note: Report based on publicly available data through StartUp Insights Issue 4HealthStartUp Health Magazine9/30/19 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. Companies tracked in StartUp Health Insights may fall under multiple moonshots and therefore will be represented throughout the report.

STARTUP HEALTH INSIGHTS // HEALTH MOONSHOTS

End Cancer THE STORY

Things continued to look up for the End Cancer Moonshot since a startling drop in funding in Q4 2018. This health moonshot saw the highest QoQ deal growth, up 113% with 34 deals YTD. While the End Cancer and Cure Disease Moonshots often mimic one another when it comes to trends in deal stages, End Cancer had a greater percentage of earlystage raises (65%). Top deals under this health moonshot were focused on drug discovery and development, which correlates to the need for substantial capital in order to support deployment.

2019 YTD

Funding Deal Count 7

$367M Q2 2018

12

$584M Q3 2018

Rounds

Investment Spectrum

Number of Deals By Round*

How Funding Is Balanced Across 10 Functions

Seed

5

Series A

10

Series B

2

Series C

2

Series D

3

Series E or later

1

Total Cancer Funding

9

8

$257M Q4 2018

$205M Q1 2019

$470M Q2 2019

Wellness

--

Research

7 Deals ($517.0M)

Clinical Workflow Personalized Health

$11M

12 Deals ($168.9M)

INVESTORS

3

$1M–$5M

8

6 Deals ($84.4M) --

$5M–$10M

4

$10M–$25M

5

$25M–$50M

3

$50M–$100M

5

$100M+

3

1 Deal ($7.0M)

MOST ACTIVE INVESTORS Ranking

Top Deals [2019 YTD] Company

126

4 Deals ($205.1M)

Education + Content

Under $1M

MEDIAN DEAL SIZE

--

Admin Workflow

Insurance

Frequency of Deal Size**

34

1 Deal ($6.0M)

Population Health

Dollars

DEALS

3 Deals ($18.5M)

Biometric Data Acquisition

$331M Q3 2019

2019 QUICK STATS Deal Count

Patient Empowerment

17

7

1

Round Size

Function

Section 32

2 9 Investors Including:

01

Tempus

$200M

Research

GV

02

Freenome

$160M

Research

Tencent

03

Thrive Earlier Detection

$110M

Personalized Health

04

DNAnexus

$68M

Population Health

05

HiFiBiO Therapeutics

$67M

Research

06

Frontier Medicines

$67M

Research

Andreessen Horowitz IDG Capital

* Deals that were not associated with a specific round are not included in this particular breakdown. **Raises without a publicly disclosed dollar amount are counted in the total number of deals, but not represented in frequency of deal size analysis.

Source: StartUp Health Insights | startuphealth.com/insights. Note: Report based on publicly available data through 9/30/19 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. Companies tracked in StartUp Health Insights may fall under multiple moonshots and therefore will be represented throughout the report.

11 11

STARTUP HEALTH INSIGHTS // HEALTH MOONSHOTS

Women’s Health THE STORY

For two quarters in a row, this health moonshot led the pack with the greatest increase in YoY funding (↑66%) and the biggest jump in deal count (↑65%). That’s a particularly strong showing given a year marked by renewed global debates over a female’s sexual and reproductive rights. The Women’s Health Moonshot also enjoyed a diversity of funded health functions, an indicator that companies in the space are thinking about women’s health holistically. Comparatively, this moonshot is still in its infancy with 71% of its deals being Seed or Series A.

2019 YTD

Funding Deal Count

13 7

5

$90.7M $66.9M Q2 Q3 2018 2018

Rounds

Investment Spectrum

Number of Deals By Round*

How Funding Is Balanced Across 10 Functions

Seed

5

Series A

10

Series B

4

Series C

2

Series D

--

Series E or later

--

Total Women’s Health Funding

8

8

$141M Q4 2018

$106M Q1 2019

1 Deal ($42.0M)

Research

--

Admin Workflow

6

$1M–$5M

7

Clinical Workflow

2 Deals ($34.0M)

Personalized Health

5 Deals ($59.4M)

$5M–$10M

4

$10M–$25M

4

$25M–$50M

4

$50M–$100M

1

$100M+

--

INVESTORS

58

4 Deal ($5.7M) -1 Deal ($17.0M)

Top Deals [2019 YTD] Company

$5M

--

Education + Content

Under $1M

MEDIAN DEAL SIZE

3 Deals ($23.7M)

Insurance

Frequency of Deal Size**

28

12 Deals ($113.3M)

Biometric Data Acquisition

$39.3M Q3 2019

DEALS

Deal Count

Population Health

Dollars

$150M Q2 2019

2019 QUICK STATS

Wellness Patient Empowerment

7

Round Size

Function

01

The Pill Club

$51M

Patient Empowerment

02

Elvie

$42M

Wellness

03

Zava

$32M

Clinical Workflow

04

Nurx

$32M

Patient Empowerment

05

Cleo (fka Lucy)

06

BillionToOne

$27.5M $15M

Personalized Health Biometric Data Acquisition

MOST ACTIVE INVESTORS Ranking 1

StartUp Health

1

Viking Global Investors

1

Special Situations’ LSI Fund

4

55 Investors including: GV NEA BlueRun Ventures

* Deals that were not associated with a specific round are not included in this particular breakdown. **Raises without a publicly disclosed dollar amount are counted in the total number of deals, but not represented in frequency of deal size analysis.

12 12

Source: StartUp Health Insights | startuphealth.com/insights. Note: Report based on publicly available data through StartUp Insights Issue 4HealthStartUp Health Magazine9/30/19 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. Companies tracked in StartUp Health Insights may fall under multiple moonshots and therefore will be represented throughout the report.

STARTUP HEALTH INSIGHTS // HEALTH MOONSHOTS

Children’s Health THE STORY

After a spike in deal flow and funding in Q2 2018, the number of quarterly deals under the banner of children’s health innovation hovered at five on average. Funding increased by 12% over the same time last year.

Top deals year to date have made up 31% of the funding for this health moonshot, which leaves a lot of companies, 80% to be exact, in the early stage. At 56 investors and the second lowest median deal size, we believe a call for innovation and attention is in order.

Funding 11

$120K Q3 2018

Investment Spectrum

Number of Deals By Round*

How Funding Is Balanced Across 10 Functions

Series A

4

Series B

2

Series C

1

Series D

--

Series E or later

--

3

3

Rounds 8

Total Children’s Health Funding

Deal Count

$75.2M Q2 2018

Seed

2019 YTD

1 Deal ($5.0M) -3 Deals ($5.7M)

1

$1M–$5M

7

$5M–$10M

3

$10M–$25M

3

$25M–$50M

--

$50M–$100M

--

$100M+

--

19

MEDIAN DEAL SIZE

Admin Workflow

--

$4.7M

Clinical Workflow

--

INVESTORS

Biometric Data Acquisition

2 Deals ($16.5M)

Personalized Health

9 Deals ($44.3M) -1 Deal ($17M)

Top Deals [2019 YTD] Company

56

3 Deals ($6.9M)

Education + Content

Under $1M

DEALS

Deal Count

Insurance

Frequency of Deal Size**

7

2019 QUICK STATS

Research Patient Empowerment

7

$24.8M $41.2M $38.4M $15.8M Q4 Q1 Q2 Q3 2018 2019 2019 2019

Wellness

Population Health

Dollars

5

Round Size

Function

MOST ACTIVE INVESTORS Ranking 1

StartUp Health

2 Fifty Years Fund

01

Caredox

$24M

Population Health

02

BillionToOne

$15M

Biometric Data Acquisition

2 Founders’ Co-op

03

Mightier

Personalized Health

4 53 Investors including:

04

Brave Care

05 06

$7M $6.6M

Population Health

GoCheck

$6M

Population Health

Astarte Medical Partners

$5M

Wellness

Greycroft Norwest Venture Partners First Round Capital

* Deals that were not associated with a specific round are not included in this particular breakdown. **Raises without a publicly disclosed dollar amount are counted in the total number of deals, but not represented in frequency of deal size analysis.

Source: StartUp Health Insights | startuphealth.com/insights. Note: Report based on publicly available data through 9/30/19 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. Companies tracked in StartUp Health Insights may fall under multiple moonshots and therefore will be represented throughout the report.

13 13

STARTUP HEALTH INSIGHTS // HEALTH MOONSHOTS

Nutrition & Fitness THE STORY

Funding for the Nutrition & Fitness Health Moonshot dropped from Q2 ($827M) to Q3 ($34M) due to a lack of top deals like Gympass’ $300M raise in June. In fact, every top deal in this health moonshot was raised in the second quarter. However, deal count remained level with 15 rounds in Q3 and 18 in Q2. Over half of the Nutrition & Fitness deals in the third quarter – 10 deals raising a total of $22M – fell under the wellness function. While investors in this health moonshot showed restraint in Q3, the following health functions served as pockets of growth: patient empowerment, personalized health, and biometric data acquisition.

Funding 20

$121M Q2 2018

$1.0B Q3 2018

Number of Deals By Round*

How Funding Is Balanced Across 10 Functions

Series A

7

Series B

5

Series C

3

Series D

2

Series E or later

--

Dollars Under $1M

4

$1M–$5M

14

$5M–$10M4 4 $10M–$25M

3

$25M–$50M

5

$50M–$100M

3

$100M+

2

8

8

$126M Q4 2018

$75.6M Q1 2019

15

$828M Q2 2019

Wellness

28 Deals ($698.5M)

Research

--

Patient Empowerment

DEALS

41

MEDIAN DEAL SIZE

2 Deals ($80.3M)

Biometric Data Acquisition

$5M

2 Deal ($75.5M)

Admin Workflow

1 Deal ($2.0M)

Clinical Workflow

--

Personalized Health

$34.2M Q3 2019

2019 QUICK STATS Deal Count

INVESTORS

111

7 Deals ($80.8M)

Population Health

--

Insurance

--

Education + Content

Frequency of Deal Size**

18

13

Investment Spectrum 7

Total Nutrition & Fitness Funding

Deal Count

Rounds Seed

2019 YTD

1 Deal ($670K)

Top Deals [2019 YTD]

MOST ACTIVE INVESTORS Ranking 1

Sequoia Capital

2

Khosla Ventures

2

Kae Ventures

Company

Round Size

Function

01

Gympass

$300M

Wellness

02

Cure.fit

$120M

Wellness

03

1mg

$80M

Patient Empowerment

2

True Ventures

04

BioSerenity

$73M

Biometric Data Acquisition

2

05

Noom

$58M

Wellness

Redwood Global Healthcare Fund

06

Tonal

$45M

Wellness

* Deals that were not associated with a specific round are not included in this particular breakdown. **Raises without a publicly disclosed dollar amount are counted in the total number of deals, but not represented in frequency of deal size analysis.

14 14

Source: StartUp Health Insights | startuphealth.com/insights. Note: Report based on publicly available data through StartUp Insights Issue 4HealthStartUp Health Magazine9/30/19 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. Companies tracked in StartUp Health Insights may fall under multiple moonshots and therefore will be represented throughout the report.

STARTUP HEALTH INSIGHTS // HEALTH MOONSHOTS

Brain Health

2019 YTD

THE STORY

Investors and entrepreneurs supporting the Brain Health Moonshot came out swinging in the first half of 2019, investing over $200M across a range of health functions. While Q3 only brought in three deals, the Brain Health Moonshot has the highest percentage of mid-stage raises at 42%. But, both early- and late-stage deals will be essential if we are to properly navigate what has been called the last frontier of science.

Funding Deal Count

11

8

6

$116M Q2 2018

Investment Spectrum

Number of Deals By Round*

How Funding Is Balanced Across 10 Functions 3

Series A

4

Series B

2

Series C

3

Series D

--

Series E or later

--

Dollars Frequency of Deal Size** Under $1M

4

$1M–$5M

2

4

$116M Q3 2018

Rounds Seed

Total Brain Health Funding

3

$36.6M $36.8M Q4 Q1 2018 2019

$200M Q2 2019

3 Deals ($48.5M) -1 Deal ($150K) 5 Deals ($29.8M)

Admin Workflow

--

Clinical Workflow

2 Deals ($52.0M

Personalized Health

3 Deals ($97.0M)

Population Health

3 Deals ($16.9M)

Insurance

--

Education + Content

--

Top Deals [2019 YTD] Company

Round Size

Function

01

BlackThorn Therapeutics

$76M

Personalized Health

$5M–$10M

2

$10M–$25M

3

02

Cala Health

$51M

Clinical Workflow

$25M–$50M

1

03

Theranica

$35M

Wellness

$50M–$100M

2

04

Neural Analytics

$22M

Biometric Data Acquisition

$100M+

--

05

Neurotrack

$21M

Personalized Health

06

Savonix

$9.6M

DEALS

Deal Count

Research Biometric Data Acquisition

$7.3M Q3 2019

2019 QUICK STATS

Wellness Patient Empowerment

3

Population Health

17

MEDIAN DEAL SIZE

$7.8M INVESTORS

62

MOST ACTIVE INVESTORS Ranking 1

StartUp Health

1

GV

3 62 Investors including: Khosla Ventures ARCH Venture Partners Lux Capital Polaris Partners

* Deals that were not associated with a specific round are not included in this particular breakdown. **Raises without a publicly disclosed dollar amount are counted in the total number of deals, but not represented in frequency of deal size analysis.

Source: StartUp Health Insights | startuphealth.com/insights. Note: Report based on publicly available data through 9/30/19 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. Companies tracked in StartUp Health Insights may fall under multiple moonshots and therefore will be represented throughout the report.

15 15

2019 YTD

STARTUP HEALTH INSIGHTS // HEALTH MOONSHOTS

Mental Health&Happiness THE STORY

Heading into the latter half of 2019, Mental Health & Happiness deal flow stayed level with 16 deals in Q3. Wellness and patient empowerment continued to be top funded functions, benefiting, in part, from the broader ascendency of the international wellness market (estimated at $4.2T by the Global Wellness Institute). However, there was a stark difference between the two functions. Wellness topped off at $292M, but patient empowerment was at $11M YTD. Perhaps helping to narrow this gap was the $60M flowing towards integrating mental health into clinical workflows, along with another $60M into the personalized health function.

Funding Deal Count 32 16

$379M Q2 2018

Investment Spectrum

Number of Deals By Round*

How Funding Is Balanced Across 10 Functions 11

Series A

7

Series B

4

Series C

3

Series D

3

Series E or later

--

Dollars Under $1M

7

$1M–$5M

15

$5M–$10M

5

$10M–$25M

1

$25M–$50M

5

$50M–$100M

1

$100M+

1

$53.1M Q4 2018

12

$138M Q1 2019

16

$205M Q2 2019

$101M Q3 2019

DEALS

Deal Count 17 Deals ($292.3M)

Research

--

Patient Empowerment

17

2019 QUICK STATS

Wellness

45

MEDIAN DEAL SIZE

12 Deals ($11.2M)

Admin Workflow

3 Deals ($9.4M)

$3M

Clinical Workflow

1 Deal ($60.0M

INVESTORS

Biometric Data Acquisition

1 Deal ($370K)

Personalized Health

104

8 Deals ($59.8M)

Population Health

--

Insurance

--

Education + Content

Frequency of Deal Size**

6

$130M Q3 2018

Rounds Seed

Total Mental Health & Happiness Funding

3 Deals ($11.1M)

MOST ACTIVE INVESTORS Ranking

Top Deals [2019 YTD]

1

Company

Round Size

Function

01

Calm

$115M

Wellness

02

Quartet Health

$60M

Clinical Workflow

03

Talkspace

$50M

Wellness

04

Ginger.io

$35M

Wellness

05

Vida Health

$30M

Wellness

06

Two Chairs

$28M

Wellness

Khosla Ventures

2 Y Combinator 2 Norwest Venture Partners 2 Sound Ventures

* Deals that were not associated with a specific round are not included in this particular breakdown. **Raises without a publicly disclosed dollar amount are counted in the total number of deals, but not represented in frequency of deal size analysis.

16 16

Source: StartUp Health Insights | startuphealth.com/insights. Note: Report based on publicly available data through StartUp Insights Issue 4HealthStartUp Health Magazine9/30/19 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. Companies tracked in StartUp Health Insights may fall under multiple moonshots and therefore will be represented throughout the report.

STARTUP HEALTH INSIGHTS // HEALTH MOONSHOTS

Addiction

2019 YTD

Funding

THE STORY

The Addiction Moonshot had the biggest QoQ increase in funding with deals growing from $4M in Q2 to $13M in Q3. This is a positive sign that the Addiction Moonshot is quickly gaining traction. And stability. Last year, just one deal was specifically focused on ending addiction. In 2019, we’ve already seen seven. Here’s where we need growth: Only three out of the 10 health functions were represented. We need to see startups and investors across all of the functions if we’re going to develop an end-to-end solution set of products and services that will stop the cycle of addiction by focusing on the whole person.

Deal Count

4 0

0

0

$0 Q2 2018

$0 Q3 2018

$0 Q4 2018

Rounds

Investment Spectrum

Number of Deals By Round*

How Funding Is Balanced Across 10 Functions

Seed

2

Series A

2

Series B

1

Series C

1

Series D

--

Series E or later

--

Frequency of Deal Size** Under $1M

--

$1M–$5M

2

$5M–$10M

--

$10M–$25M

1

$25M–$50M

--

$50M–$100M

1

$100M+

--

$65.5M Q1 2019

1

2

$4.1M Q2 2019

$13.2M Q3 2019

2019 QUICK STATS DEALS

Deal Count

Wellness

--

Research

--

Patient Empowerment

4 Deals ($75.7M)

7

MEDIAN DEAL SIZE

Biometric Data Acquisition

--

Admin Workflow

--

$7.9M

Clinical Workflow

--

INVESTORS

Personalized Health

2 Deal ($7.1M)

Insurance

--

Education + Content

--

Top Deals [2019 YTD] Company 01

Pear Therapeutics

02

Tempest

03

DynamiCare Health

04

Karuna Labs

05

Workit Health

06

PursueCare

38

1 Deal (Undisclosed)

Population Health

Dollars

Total Addiction Funding

Round Size

Function

$64M

Patient Empowerment

$11.7M

Patient Empowerment

MOST ACTIVE INVESTORS Ranking 1

38 investors including: Lux Capital BlueCross BlueShield

$4.1M

Population Health

JAZZ Venture Partners

$3M

Population Health

UCB

--

Personalized Health

Refactor Capital

--

Patient Empowerment

RRE Ventures

* Deals that were not associated with a specific round are not included in this particular breakdown. **Raises without a publicly disclosed dollar amount are counted in the total number of deals, but not represented in frequency of deal size analysis.

Source: StartUp Health Insights | startuphealth.com/insights. Note: Report based on publicly available data through 9/30/19 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. Companies tracked in StartUp Health Insights may fall under multiple moonshots and therefore will be represented throughout the report.

17 17

STARTUP HEALTH INSIGHTS // HEALTH MOONSHOTS

Longevity

2019 YTD

Funding

THE STORY

Like the Nutrition & Fitness Moonshot, top deals for Longevity occured in H1 2019, creating a steep dropoff, second only to Brain Health’s stunted deal flow. While funding dipped QoQ, YoY this health moonshot is only slightly behind with 8% less funding than this time last year. As far as health functions go, clinical workflow was the biggest winner this quarter under Longevity, bringing in $50M across two deals, for $80M total YTD. Its runner up function, patient empowerment, led in deal count with six raises.

Deal Count 41

35

$818M Q3 2018

Rounds

Investment Spectrum

Number of Deals By Round*

How Funding Is Balanced Across 10 Functions 13

Series A

6

Series B

11

Series C

2

Series D

2

Series E or later

1

33

9

$1M–$5M

20

$5M–$10M

12

$10M–$25M

10

$25M–$50M

7

$50M–$100M

5

$100M+

2

$834M Q1 2019

Wellness

13 Deals ($467.8M)

Research

3 Deals ($69.0M)

Patient Empowerment

16 Deals ($326.3M)

Biometric Data Acquisition

12 Deals ($144.7M)

Admin Workflow

2 Deal ($6.6M)

Clinical Workflow

6 Deals ($79.4M)

Personalized Health

$758M Q2 2019

$122M Q3 2019

DEALS

69

MEDIAN DEAL SIZE

$5.5M INVESTORS

156

11 Deals ($110.2M) 2 Deals ($2.7M) 2 Deals ($505.0M)

Education + Content

Under $1M

$710M Q4 2018

Deal Count

Insurance

Frequency of Deal Size**

31

2019 QUICK STATS

Population Health

Dollars

25

13

$599M Q2 2018

Seed

Total Longevity Funding

2 Deals ($2.3M)

Top Deals [2019 YTD] Company

Round Size

Function

01

Clover Health

$500M

Insurance

02

Gympass

$300M

Wellness

03

Hims

$100M

Patient Empowerment

04

Ro (fka Roman)

$85M

Patient Empowerment

05

BioSerenity

$73M

Biometric Data Acquisition

06

Jawbone Health

$65.4M

MOST ACTIVE INVESTORS Ranking 1

Khosla Ventures

1

Bold Capital Partners

1

Meridian Street Capital

1

UCB

1

Accelerated Digital Ventures

Patient Empowerment

* Deals that were not associated with a specific round are not included in this particular breakdown. **Raises without a publicly disclosed dollar amount are counted in the total number of deals, but not represented in frequency of deal size analysis.

18 18

Source: StartUp Health Insights | startuphealth.com/insights. Note: Report based on publicly available data through StartUp Insights Issue 4HealthStartUp Health Magazine9/30/19 on seed (incl. accelerator), venture, corporate venture, and private equity funding only. Companies tracked in StartUp Health Insights may fall under multiple moonshots and therefore will be represented throughout the report.

Methodologies Sectors We have a broad view of health innovation and believe that the current trend is a crosspollination 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-ofthings, 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 Insights records only publicly-available data on cash for equity investments as the cash is actually received by the company.

StartUp Health Insights is inclusive of accelerator, preseed, 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.

--Sources Funding data is from StartUp Health Insights, 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 Insights, CrunchBase, AngelList, Start-Up Nation Central Finder, and news reports.

StartUp Health works to ensure that the information contained in the StartUp Health Insights 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.

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