Digital Health

WHAT'S TRENDING IN

From artificial intelligence to cybersecurity, technology is transforming healthcare. Below we take a look at some of the larger trends in digital health and related areas of healthcare.

FAST FACTS

$7.1B

$500M

San Francisco

Funding year-over-year

Largest deal in first half of 2019

City with most funding since 2016

FAMGA in Healthcare

Apple was able to recruit 400,000 people in less than a year for its heart study. This is very promising both for its indication of consumer trust and for the potential of extremely large trials.

Alphabet’s Verily raised $1B in a round led by Silver Lake.

$1B

Amazon is initially partnering with 5 companies to create HIPAA-compliant Alexa apps.

5

10,000

RAISED

COMPANY PARTNERSHIPS

Cannabis

Thus far in 2019, CBD has been cited in the news at more than 2x its 2018 average monthly rate, approaching 1,000 mentions per month. 

Cannabis startups have raised $1.6B across 200 deals thus far
in 2019 (as of 6/18/2019). 

$1.6B

Since Q1'14, Aphria has been the most active corporate investor in cannabis startups, while Aurora has been the most active corporate acquirer.

RAISED ACROSS 200 DEALS

Genomics

Genomics deals have grown rapidly, raising nearly $1.2B in 2014 to $3.6B in 2017.

$27M

The average deal size in the 

space grew from $14M in 2014 

to $27M in 2017.

$1.6B

Liquid biopsy company Grail remains the most well-funded private company in genomics, with $1.6B in total disclosed funding.

AVERAGE DEAL SIZE

RAISED

Women's Health

The women’s health market is estimated to be worth over $50B by 2025. 

$14M

Average deal size in the space grew from nearly $10M in 2018 to $14M in 2019 YTD.

115+

Women’s health startups saw a peak in the number of deals in 2018, reaching 115+, a record high in the last 5 years. 

AVERAGE DEAL SIZE

DEALS IN THE LAST YEAR

Digital Therapeutics

Digital therapeutics deals reached a peak in funding in 2018 with over $800M raised.

$18M

The average deal size for digital therapeutics saw a big jump from 

$9M in 2014 to $18M in 2018. 

Early-stage (seed/angel, Series A) deals have dominated digital therapeutics since 2014, making up more than 60% of the deals. However, 2018 saw a shift here as early-stage deals dropped to 45% while mid-stage deals (Series B, C) ticked up to 40%, showing signs of the market maturing.

Hospital Tech

Median deal size in the space has grown from $3M in 2014 to $20M in 2019.

33%

Hospitals accounted for 33% of all health expenditures in 2017, according to CMS.

$788M

Hospital tech companies have raised $788M across 15 deals in 2019 YTD. 

Medicare Advantage

Clover Health, Devoted Health, Bright Health, and Oscar Health have collectively raised over $3B to build out their Medicare Advantage operations.

45-55%

Medicare Advantage is projected to account for 45%-55% of the Medicare population by 2025.

>360K

Clover Health, Devoted Health, Bright Health, and Oscar Health have enrolled >360,000 members in their plans between the MA, individual, and small business markets.

ENROLLED MEMBERS

Cybersecurity in Healthcare

Between 2009 and 2018 there were 2,500+ health data breaches of 500+ records each.

67%

In a recent Ponemon Institute study, 67% of surveyed medical device manufacturers indicated that an attack on one or more of their medical devices is likely.

Cybersecurity startups offering products and services for the healthcare industry raised $3B across more than 85 deals since 2017. Notably, 2018 saw more deals and dollars go to these companies than any other year on record.

$3B

Pharma Supply Chain

There are 2 pharma supply chain unicorns: GoodRx and Hims. 

$370M

Pharma supply chain companies have raised $370M through 13 deals so far in 2019.

>2,500

CVS is rolling out >2,500 HealthHub locations in the next 2 years to grow its brick-and-mortar presence.

RAISED

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