StartUp Health Insights Funding Report Q1 2017

© 2017 StartUp Health, LLC
A StartUp Health Insights Report
Digital Health Funding Rankings
 
Data through March 31, 2017
Report is inclusive of seed, venture, corporate venture and private equity funding
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Q1 2017
TM
INCLUDING CAREGIVING FUNDING SPONSORED BY

startuphealth.com/reports
ABOUT STARTUP HEALTH
Pages Topic
2-3 ………………………………………….…………… About StartUp Health
4 ………………………………………….…………… Year End Summary
5-11 ………………………………………….…………… Deals and Funding
12 ………………………………………….…………… Geography
13 ………………………………………….…………… Investors
14-19 ………………………………………….…………… AARP Caregiving Funding
20 ………………………………………….…………… Methodology
Jennifer
Hankin
Polina
Hanin
Troy
Bannister
Mark
Liber
Anne
Dordai
Nicole
Kinsey
Tara
Salamone
StartUp Health InsightsTM Contributors
Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC
Niharika
Gupta
2
John
Oro
In 2011, StartUp Health introduced a new model for
transforming health by organizing and supporting a global
army of entrepreneurs called Health Transformers. With
the world’s largest digital health portfolio (nearly 200
companies spanning 5 continents, 18 countries and 60+
cities), StartUp Health is mobilizing this rapidly growing
army along with the world’s ‘batteries included’ leaders,
innovators and investors, to achieve 10 Health Moonshots,
with a 25 year mission to improve the health and
wellbeing of everyone in the world.
Learn more about how you can join this movement and
support Health Transformers at www.startuphealth.com.

1
Access to Care Moonshots
Delivering quality care to everyone, regardless
of location or income
2
Cost to Zero Moonshots
Radically reducing the cost of care by a factor
of a million
3
Cure Disease Moonshots
Curing disease using data, technologies and
personalized medicine
4
Cancer Moonshots
Ending cancer as we know it
5
Women’s Health Moonshots
Prioritizing women’s health, including
preventive care and new research
6
Children’s Health Moonshots
Ensuring every child has access to quality care,
particularly in underserved areas
7
Nutrition and Fitness Moonshots
Providing access to a healthy environment and
support an active lifestyle
8
Brain Health Moonshots
Unlocking the mysteries of the brain to
improve health
9
Mental Health and Wellbeing Moonshots
Destigmatizing mental health and connect
mind, body and spirit
10
Longevity Moonshots
Adding 50 healthy years to every human life
10 HEALTH MOONSHOTS THAT ARE CHANGING THE WORLD
One of the most exciting trends to emerge is an ambitious generation of entrepreneurs, leaders and investors focusing on bold ‘Health
Moonshots’. StartUp Health is organizing and supporting its global army of Health Transformers to focus on achieving 10 Health Moonshots with
a 25-year mission to improve the wellbeing of everyone in the world. Each Health Moonshot has the potential to help at least a billion people.
3Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only. © 2017 StartUp Health LLC

DEALS & FUNDING GEOGRAPHY INVESTORS
“Ultimately,
this is a
revolution
about
individuals
and families
taking control
of their
health”
- Jerry Levin, Executive Chairman
of the Board, StartUp Health
2017 Q1 SUMMARY
If the first quarter of 2017 is any indication of what’s to come, 2017 is going to be another important year for digital health
funding. Among this quarter’s most notable developments, the population health sector saw a large number of deals, Los
Angeles emerged as a hotspot of digital health funding, and cancer detection ‘startup’ GRAIL had a record-breaking Series B
further displaying the inevitable trend of ‘digital’ weaving into the fabric of every other health/healthcare sector.
4
At $2.5 billion, Q1 2017 was the biggest
first quarter recorded since 2010 due to
a record breaking Series B funding round.
This was largely responsible for turning
what would have otherwise been a
modest quarter into a record breaker.
Biggest Q1 Yet*
1
Biggest Deal Yet
GRAIL’s $914 million Series B was the
largest digital health deal on record.The
investment demonstrates the inevitable
growing trend of ‘digital’ cross-pollinating
with all sectors of health and healthcare.
2
With 25 deals recorded in Q1 2017,
this was a breakout quarter for the
population health sector.
Population Health Attracts Capital
3
Are Series A’s becoming the new seed? With
Series A rounds becoming more robust,
seed stage funding is falling as a percentage
of total investment.
Seed Deals Slow
4
After a remarkable first quarter, Los Angeles
is quickly becoming one of the top
destinations for digital health.
LA’s Hot for Digital Health
5
CAREGIVING
*Including GRAIL’s $914M funding round

2010 2011 2012 2013 2014 2015 2016 2017
YTD
Q1 Q2 Q3 Q4
DEALS & FUNDING GEOGRAPHY INVESTORS
158
300
499
668
589
526
606
124
Deal Count
$1.1B
$2.0B
$1.5B
$629M$572M$391M$192M
$8.2B
$6.0B
$7.1B
$2.9B
$2.4B
$2.0B
$1.1B
DIGITAL HEALTH FUNDING SNAPSHOT: YEAR OVER YEAR
5
CAREGIVING
$2.5B
$2.5B
GRAIL’s $914 million Series B may be an outlier and skewed the overall funding numbers this quarter keeping it on track
for another strong year overall, and turning an otherwise modest ﬁrst quarter into a record-breaker.
While Q1 2017 had the lowest deal volume since 2011 -
with only 124 deals this quarter - we’re seeing more and
more $500-900M deals. What do less deals and more
money mean? Even though VCs are betting less, they’re
betting bigger. Also, the lines are blurring quickly as
expected between “digital” and all other categories of
health and healthcare.
“AI, virtual reality, mobile connectivity,
genomics, and analytics are coming to
change healthcare, and that is creating a
wave of innovation like we’ve never seen.”
-Unity Stoakes, President, StartUp Health

DEALS & FUNDING
$0B
$0.233B
$0.467B
$0.7B
$0.933B
$1.167B
$1.4B
2010 2011 2012 2013 2014 2015 2016 2017
$320M Series B
$150M Series C
$37.5M Venture
$37.9M Venture
$394M Venture
$33M Series B
$31M Series A
$400M Series C
$130M Series B
$500M Series C
R2 = 0.5564
$400M Venture $220M Series A
Good Doctor
$500M Venture
DIGITAL HEALTH FUNDING SNAPSHOT: MONTH OVER MONTH
GEOGRAPHY INVESTORS
6
$500M Series A
CAREGIVING
$914M Series B
The ﬁrst three months of 2017 continue a varied, yet trending pattern with a positive regression value, serving as an indicator
of a continuously growing industry. March of 2017 has proven to be the largest month on record.

DEALS & FUNDING
$0B
$0.23B
$0.47B
$0.7B
$0.93B
$1.17B
$1.4B
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2013 2014 2015 2016 2017 YTD
DIGITAL HEALTH FUNDING SNAPSHOT: MONTH OVER MONTH
GEOGRAPHY INVESTORS
CAREGIVING
It’s interesting to watch the evolution in funding year-over-year on a monthly basis as some months demonstrate consistency,
others show wild variety and others prove to be big months for investors. We expect funding in the next three months to be on
the rise.
March funding including GRAIL’s $900M Funding Round

Company $ Invested Subsector Notable Investor
1 $914M Big Data/Analytics
2 $115M Population Health
3 $100M Patient/Consumer Experience
4 $90M Big Data/Analytics
5 $85M EHR
6 $65M Research
7 $55M E-Commerce
8 $52M Population Health
9 $50M Medical Device
10 $41M Research
DEALS & FUNDING
THE TOP 10 LARGEST DEALS OF 2017
GEOGRAPHY INVESTORS
CAREGIVING
The top 10 deals of Q1 2017 included companies working in sectors in which big deals have been rare. What does this
suggest? 2017 might be a breakout year in terms of funding for solutions focusing on population health, EHR innovation, and
e-commerce.

DEALS & FUNDING
Subsector Total Raised YTD Deal Count Avg. Deal Size
1 Population Health $392M 25 $15.7M
2
Patient/Consumer
Experience
$226M 21 $10.7M
3 Research $184M 9 $20.4M
4 Medical Device $175M 16 $10.9M
5 Big Data/Analytics $170M 11 $15.5M
6 EHR $115M 2 $57.5M
7 Workflow $92M 18 $5.1M
8 E-Commerce $77M 3 $25.7M
9
Personalized Health/
Quantified-Self
$65M 9 $7.2M
10 Wellness $35M 4 $8.75M
THE TOP 10 MOST ACTIVE MARKETS OF Q1 2017
GEOGRAPHY INVESTORS
*Big Data/Analytics excludes GRAIL’s $900M funding round
CAREGIVING
In the first quarter of 2017, the population health sector took off, with 23 deals and almost double the year-to-date
funding of any other sector.
Without a way to organize patient populations by risk, it
becomes difficult for providers to triage patients, engage
in prevention, and provide personalized care. Over the
last year, a number of providers have adopted population
health platforms, viewing them as a means of
segmenting patient populations, as well as a foundation
on which to build more advanced solutions.
“We have the opportunity to change our mindset
to think about how we do things proactively.”
- Gil Peri, Chief Strategy Officer, Children’s Hospital Colorado

DEALS & FUNDING
2010
2011
2012
2013
2014
2015
2016
2017 YTD
0% 25% 50% 75% 100%
Seed Series A Series B Series C Series D Series E Series F + G + H
26% 33% 13%25% 4%
*Deal count only includes Seed though Series F+ rounds. Does not include venture rounds or growth equity.
Deal Count*
124
234
297
441
388
297
350
DEAL ACTIVITY BY STAGE
GEOGRAPHY INVESTORS
70
CAREGIVING
As a percentage of total deals, seed stage investment has steadily decreased since 2015, dropping from a third of all deals to
a quarter. Compared to Q1 2016, funding dollars to seed stage companies have also dropped, down by nearly 50%. So where
is the money ﬂowing? Series A deals have become the most funded round, pulling in just over a quarter billion dollars.

47%
Workflow
Big Data/Analytics
Research
Patient/Consumer Experience
Medical Devices
E-Commerce
Diagnostics
5 3 2 1 0
3 8 3 2 1
4 5 2 1 0
2 4 4 0 0
1 1 3 2 1
3 1 1 2 0
2 1 1 1 0
1 1 1 0 0
0 0 1 0 1
0 0 0 1 0
0 1 0 0 0
0 1 0 0 0
Population Health
Personalized Health/Quantified Self
Wellness
Education/Training
Clinical Decision Support
Seed Series A Series B Series C Series D
DEALS & FUNDING
MARKET MATURITY MAP 2017
GEOGRAPHY INVESTORS
More funding activity Less funding activity
CAREGIVING
At 26 deals, Series A rounds were the most active stage of investment in the first quarter of 2017. By sector, population
health and patient/consumer experience had the highest deal counts.

INVESTORS
Region Ranking by Deal Count
1 SF Bay
2 New York City
3 Boston
4 Los Angeles
5 Washington, DC
6 Chicago
7 Charlotte
8 Denver
9 Seattle
10 San Diego
$23M
$48M
$181M
$10M
$408M
San Francisco
Bay Area*
Denver Metro
San Diego Metro
New York City
Metro
Boston Metro
$54M
Chicago Metro
$14M
Seattle Metro
$14M
Charlotte
Metro
(2 Deals)
(2 Deals)
(24 Deals)
(2 Deals)
(3 Deals)
(3 Deals)
(8 Deals)
(6 Deals)
Los Angeles
Metro
$120M
(5 Deals)
Washington,
DC Metro
$40M
(4 Deals)
DEALS & FUNDING GEOGRAPHY
THE MOST ACTIVE US METRO AREAS OF 2017
CAREGIVING
*Excludes GRAIL’s $900M Funding Round
With ﬁve deals totaling $120 million in the ﬁrst quarter of this year, Los Angeles continues to grow as a hotspot for digital
health funding and is beginning to catch up to hubs like Boston and New York.

Firm 2017 YTD Deals 2016 Q1 Deals Stage
Early Mid Late
1 4 1
2 3 -
2 3 3
DEALS & FUNDING
THE TOP INVESTORS OF 2017
INVESTORSGEOGRAPHY
CAREGIVING
Venrock leads the pack with four deals this quarter and many investors following suit with 2-3 deals - an increase from their
previous Q1 deals.
22 other organizations invested in 2 deals this quarter*
*Excluding Pre-Seed and Accelerator Rounds

A Spotlight on Caregiving
sponsored by
*Data sourced and
provided by:
* Data in following section is separate from StartUp Health Insights.
DEALS & FUNDING INVESTORSGEOGRAPHY
CAREGIVING
14startuphealth.com/reports

By 2020, 117 million Americans are expected to need assistance of some kind, yet the overall number of unpaid caregivers is
only expected to reach 45 million. Technology holds great promise for helping to reduce the complexities, stress, and sheer
hard work of these caregivers. Companies from established multinationals to startups, mass-market ﬁrms to niche players,
are recognizing this caregiving market opportunity that’s expected to reach $72 billion in 2020 alone.
15
CAREGIVING
CAREGIVING INVESTMENT LANDSCAPE

There continues to be a focus on funding technologies that make daily essential activities easier, including transportation, food
delivery and other services that provide value to everyday tasks and errands. Instacart led the pack this quarter with a
substantial half-billion dollar raise. Interestingly, Health & safety awareness led with most deals, albeit in much earlier stages.
47%
45%
26%
Category Raised YTD Deal Count Average Deal Size Notable Deal
1 Daily Essential Activities $497M 15 $33.1M
2 Care Coordination $172M 14 $12.3M
3 Health & Safety Awareness $130M 20 $6.5M
4 Social Well-being $119M 5 $24M
5 Transition Support $22M 7 $3.1M
6 Caregiver Quality of Life $8M 6 $1.3M
* Includes company funding in multiple categories
16
CAREGIVING
CAREGIVING MARKET INVESTMENTS OF Q1 2017

47%
45%
26%
Notable Deal Total Raised YTD Notable Investor Category
1 $400M Daily Essential Activities
2 $115M Care Coordination
3 $100M Social Well-being
5 $30M Health & Safety Awareness
6 $21M Care Coordination
8 $15M Transition Support
While not counted in StartUp Health’s data as a digital health deal, Instacart’s half-billion dollar raise signaled a resurgence in
home food delivery with a a personalized spin.
17
CAREGIVING
CAREGIVING MARKET TOP DEALS OF Q1 2017

CAREGIVING MARKET MATURITY MAP OF Q1 2017
47%
Care coordination demonstrated highly active early-stage investments this quarter whereas daily essential activities received
more late-stage funding.
3 5 2 1 0
1 2 6 0 1
0 4 2 1 2
4 0 1 0 0
2 0 3 1 0
0 2 0 0 0
Seed/Angel Series A Series B Series C Series D
Care
Coordination
Caregiver  
Quality of Life
Health & Safety
Awareness
Social
Wellbeing
* Includes company funding in multiple categories
Daily Essential
Activities
Transition
Support
18
CAREGIVING

Firm 2016 YTD Deals Notable Deal Stage
Early Mid Late
1 3
2 2
2 2
2 2
2 2
2 2
2 2
2 2
2 2
2 2
19
CAREGIVING
CAREGIVING MARKET VENTURE INVESTORS OF 2017 Q1
Health Enterprise Partners was the most active ﬁrm with three deals in Q1 2017. Many other VCs invested in two deals, including
participation in the large Instacart deal by Kleiner Perkins, Y Combinator and Funders Club.

startuphealth.com/reports1
Sectors:
• We have a broad view of digital health and believe that the current trend is a
cross-pollination 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-of-things, 3D printing and genomics and personalized medicine.
• StartUp Health tracks companies based on their sectors, subsectors and
specialties. Investments in subsectors and specialties are not mutually exclusive,
as deals are tagged with multiple subsectors and specialties based on the
company’s focus.
• 2015 brought with it an extensive database quality assessment. A new system
was implemented allowing StartUp Health to track innovation with enhanced
granularity. Additionally, gaps in funding data were researched and added into our
database enabling us to identify fundings previously unaccounted for in previous
reports.
Stages of Funding:
• StartUp Health InsightsTM
records only publicly available data on cash for equity
investments as the cash is actually received by the company. StartUp Health
InsightsTM
is inclusive of accelerator, pre-seed, 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 incubator 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 InsightsTM, 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 InsightsTM, CrunchBase, AngelList and news reports.
• StartUp Health works to ensure that the information contained in the StartUp
Health InsightsTM 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.
METHODOLOGIES

STARTUP HEALTH’S GROWING ARMY

StartUp Health Insights Funding Report Q1 2017

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