Designed by Rachael Leah Charbonneau, curated by Kim Krueger, Prerna Anand, and Matthew Holt. Health 2.0's Quarterly Findings, Q1 2015

1. HEALTH 2.0 QUARTERLY REPORT :: Q1 2015
QUARTERLYREPORTS
HEALTH 2.0 QUARTERLY REPORT :: Q1 2015
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2. HEALTH 2.0 QUARTERLY REPORT :: Q1 2015
THE NEW CONSUMER HEALTH LANDSCAPE
Changes in the structure and delivery of care are going to be driven by
consumer behavior, the new technologies used by and designed for
consumers, and the the need for big players to adapt. We’ve arrived at
the perfect storm for a consumer health tsunami, and it’s being driven in
large part by sensors, policy, and the“main street-ification”of care delivery
and digital tools.
HEALTH CARE GOES RETAIL
There’s a big move changing the natural core of health care delivery,
starting from the edges with companies that are delivering care either in
the worksite setting or most notably in the retail setting.
MASS-MARKET CONSUMER HEALTH PLATFORMS ARE HERE
The ubiquity of new health technologies -- in particular sensors and
accompanying platforms to collect and share data -- is ushering in an era of
continuous health data collection that can be as seamless as a“setting”on
your phone thanks to Apple and Samsung building health software directly
into their operating systems.
MONEY, MONEY, MONEY
Following a record breaking year of digital health funding in 2014, this year
is off to a quick start with more than 50 deals taking place in Q1 for an
astounding $400 million.
Four Big Things We Noticed…In Early 2015

3. HEALTH 2.0 QUARTERLY REPORT :: Q1 2015
1701
CONSUMER FACING
895
PROFESSIONAL
FACING
293
PATIENT PROVIDER
COMMUNICATION
382
DATA, ANALYTICS,
& EXCHANGE
3271
ALL COMPANIES
Health 2.0 tracks companies in the Health 2.0 Source
database 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.
AS OF JANUARY 2015, Health 2.0 Source
tracked 3,271 companies of which 52% fall
into the consumer facing category. The
market continues to expand, but we’re still
awaiting consolidation and identification of
‘winners’in each category.
Health 2.0 Source: It feels like we’ve summited K2, but really we’ve just arrived at base camp…
HEALTH 2.0 SOURCE COMPANIES BY CATEGORY, JAN. 2015

4. HEALTH 2.0 QUARTERLY REPORT :: Q1 2015
EACH OF THE NINETEEN SEGMENTS of
new health technologies that Health 2.0
tracks saw new companies founded in
2014. Many are still geared towards
consumers and self-management, but a
significant crop of companies in the B2B
Clinician Workflow segment were focused
on developing new interfaces for EMRs.
“Why are companies still launching wearable trackers if adherence is proved to be decreasing?”*
*Asked the ever wise & stylish Lisa Suennen to a panel of VCs at Health 2.0’s WinterTech
0 5 10 15 20 25 30 35 40
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
*Punxsutawney Phil predicted six more variations on the wrist-
worn wearable tracker. No, he didn’t, but entrepreneurs are still
innovating in circles around devices, data, and companion apps,
looking for that perfect combination that jolts consumers into
sustained engagement -- even if it’s passive!
*
NEW COMPANIES FOUNDED IN 2014, BY SEGMENT

5. HEALTH 2.0 QUARTERLY REPORT :: Q1 2015
2011
1.0 B 1.6 B 2.2 B
4.6 B
2012
2013
2014
2015
FUNDING FOR THE HEALTH 2.0 space
has exploded over the past several years
and shows no signs of slowing down as
excitement around the space continues.
Several companies went public in 2014
and even though they’re not all doing so
well as the stock market hits record highs,
we still expect to see more IPOs this year.
Can Funding In 2015 Possibly Eclipse 2014?
At this point, we keep counting dollars because all the cool kids
are doing it – Rock Health, StartUp Health, Mercom Capital, and
others. Their totals never match (and never will), but it doesn’t
matter because the dollars can only tell us so much. We know
funding is going up, we can point to where it’s going, but to
figure out what’s really going on – that becomes a little more
involved. Read on!
HEALTH 2.0 ANNUAL FUNDING

6. HEALTH 2.0 QUARTERLY REPORT :: Q1 2015
1,738M
CONSUMER FACING
THE CONSUMER FACING AND PROFESSIONAL FACING
categories continue to dominate funding, but don’t be
fooled – many consumer tools now include communication
functions and many analytic tools are designed specifically
for providers. The boundaries are blurring, but it all makes
sense when you dive deeper into the products.
Annual Funding: The Remix
1,781M
PROFESSIONAL
FACING
423M
PATIENT PROVIDER
COMMUNICATION
497M
DATA, ANALYTICS,
& EXCHANGE
Q3: 262M
Q2: 1162M*
Q4: 118M
Q1: 239M
Q1: 105M
Q4: 192M
Q3: 93M
Q2: 107M
Q1: 88M
Q2: 123M
Q3: 42M
Q4: 170M
Q1: 265M
Q2: 483M
Q3: 553M
Q4: 437M
*Two of the biggest deals of the year during April of 2014:
125M100M
ANNUAL FUNDING BY CATEGORY AND QUARTER, 2014

7. HEALTH 2.0 QUARTERLY REPORT :: Q1 2015
HEALTH 2.0 HAS TRACKED more than
$400 million in funding in the first quarter
of 2015, with almost half of that money
funneling into the consumer facing
category. Here, we highlight some of the
notable deals across our four categories
January 2015 Funding by Health 2.0 Category
CONSUMER FACING PROFESSIONAL
FACING
PATIENT PROVIDER
COMMUNICATION
DATA, ANALYTICS,
& EXCHANGE
NOTABLE FUNDING DEALS TO DATE IN 2015 (BY CATEGORY)
What we didn’t include in this chart are two deals that
fall just outside the Health 2.0 space in what we’ll call
‘services’ for now – Iora Health ($28M) and Crossover
Health ($15M). Those two deals taken in context with
Walmart’s late 2014 attack on primary care and
UnderArmour’s $710M MapMyFitness, MyFitnessPal,
and Endomondo buying spree—all as we await the
debut of the Apple Watch—show the first signs of a
serious outside attack on the traditional health care
delivery system.

8. HEALTH 2.0 QUARTERLY REPORT :: Q1 2015
Yes, this graph looks a lot like one we showed you earlier – of new
company formation – but this graph is different. It’s a tally of all the
products we track by segment. We are 100% unbiased* when we
say products are the most important metric you can track in the
space because it’s the products, their features, and traction –
independent of shifting companies and big funding raises – that
ultimately mold the shifting landscape in health care.
*If you believe us, you have bigger problems to deal with.
THIS GRAPH SHOWS the current break down
of products tracked in Health 2.0 Source by
segment. Most products are currently in the
consumer self-tracking segment, but there is
also a solid distribution of products across
the professional facing category and a strong
group of products connecting these
two worlds.
If You Remember One Thing: Products Are Not Companies, Companies Are Not Products
0 100 200 300 400 500 600 700
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
CONSUMER FACING
PROFESSIONAL FACING
PATIENT PROVIDER
COMMUNICATION
DATA, ANALYTICS,
& EXCHANGE
TOTAL NUMBER OF PRODUCTS BY SEGMENT IN HEALTH 2.0 SOURCE

9. HEALTH 2.0 QUARTERLY REPORT :: Q1 2015
ABOUT HEALTH 2.0 MARKET INTEL
Since 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 a curated, contextualized
newsletter, to monthly trend reports, 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 visit
health2con.com/marketintel/market-intelligence-bundle or email
marketintel@health2con.com
ABOUT THE QUARTERLY REPORT
The 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

10. HEALTH 2.0 QUARTERLY REPORT :: Q1 2015
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For more information visit health2con.com
HEALTH 2.0 QUARTERLY REPORT :: Q1 2015