digital health funding and m&a€¦ · tempus, $170 million raised by doctolib, and $100...

1H 2019 Digital Health Funding and M&A Executive Summary

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Executive Summary

Digital Health

Funding and M&A 2019 First Half Report

Funding and merger & acquisition activity for the

Digital Health sector

http://www.mercomcapital.com



• VC funding for Digital Health companies in 1H 2019 was slightly higher with $5.1 billion

raised in 318 deals compared to $4.9 billion raised in 383 deals 1H 2018.

• Digital Health VC funding in Q2 2019 came to $3.1 billion raised in 169 deals compared

to $2 billion raised in 149 deals in Q1 2019. YoY, funding was up 28% compared to $2.4

billion raised in 196 deals in Q2 2018.

• Top VC funded Digital Health categories in Q2 2019 were: Telemedicine with $676

million, followed by Analytics with $551 million, and Wellness with $304 million.

• Digital Health practice-focused companies received $1.2 billion in 76 deals, accounting

for 40% of the total $3.1 billion VC funding raised in Q2 2019.

• Consumer-focused companies raised $1.9 billion in 93 deals and accounted for 60% of

the total $3.1 billion VC funding raised in Q2 2019.

• The top Digital Health VC deals in 1H 2019 were: $250 million raised by Tencent Trusted

Doctors, followed by $205 million raised by Collective Health, $200 million raised by

Tempus, $170 million raised by Doctolib, and $100 million raised by Health Catalyst.

• There were 21 countries that received Digital Health VC funding in Q2 2019, compared to

17 countries in Q1 2019.

2,441 3,121 1,430 1,995 3,117

196

173

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169

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Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Source: Mercom Capital Group

Digital Health VC Funding Q2 2018-Q2 2019

Disclosed Amount (US$M) No. of Deals

SELECT KEY

FINDINGS



• In Q2 2019 (within the United States), 34 deals originated from California, followed by

New York with 15 deals, attracting the most VC funding with $782 million and $437

million respectively.

• A total of 450 investors participated in funding deals in Q2 2019, compared to 371

investors in Q1 2019.

• In Q2 2019, announced debt and public market financing raised by Digital Health

companies came to $190 million in five deals compared to $179 million in six deals in Q1

2019.

• In 1H 2019, there were 91 Digital Health M&A transactions (16 disclosed) compared to

116 transactions (26 disclosed) in 1H 2018.

• In Q2 2019, there were 46 M&A transactions (nine disclosed) involving Digital Health

companies compared to the 45 M&A transactions (seven disclosed) in Q1 2019. In a YoY

comparison, there were 68 M&A transactions (13 disclosed) in Q2 2018.

Top Digital Health M&A Transactions in 1H 2019 By Disclosed Amount

Company Terms/Amount

($M) Acquirer

5,800

1,200

700

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500

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Digital Health VC Funding By Amount in Q2 2019 (US$ in Millions)



Introduction……………………………………………………………………….……...……… 3

Key Findings ……………………………….…………………………….………….… 5

2018-2019 Digital Health Funding and M&A ………………………….…………..… 9

VC Funding 2010-2019 YTD…………………………………………………….…………….. 9

VC Funding by Quarter ……………..……………………………………………………..…. 10

VC Funding by Technology…………………………………………………..……… 11

Q2 2019 Funding Breakdown…………………………………………..…………… 12

1H 2019 Funding Breakdown…………………………………………..…………… 13

Practice-Focused VC Funding by Sub-Technology……………..………………… 14

Health Information Management……….…….……………….……..…… 15

Consumer-Focused VC Funding by Technology……………..…………………… 19

Telehealth …….…………….…………….…………………….…..…… 20

Mobile Health ….………………..…………….………………...……..… 22

Personal Health …….…….………….…………….…….…………..…… 28

Scheduling, Rating & Shopping………….………..……..………….…… 29

Social Health ………….………..……..………….………………………… 30

VC Funding by Stage……………..………………………………….….….………… 31

VC Activity by Country…………..…………………………………………….……… 33

VC Activity by U.S. States………………………….………….………..…………… 35

Top VC Funding Deals……….……………………… ……….……...…………....... 37

Top VC Investors………..……………… ………………………..…………............. 39

VC Deals………………………..………… ……………………….…………………. 41

VC Investors…….……………………..…… ………………………..…………........ 57

Debt and Public Market Financing….……………………………….……………………… 76

Debt and Public Market Financing Activity ...…………..………………..………… 78

Initial Public Offering (IPO) ……………………………........................................... 79

Mergers and Acquisitions (M&A)………………………….………………………………… 81

M&A by Technology………..…………………………………………..……….……. 83

M&A by Sub-Technology…..……..…..………………..………………………..…... 85

Q2 2019 M&A Breakdown………………………………………………..………… 86

1H 2019 M&A Breakdown………………………………………………..………… 87

Top M&A Transactions………………………………………………….…………... 88

Active Acquirers………….................................................................................... 90

M&A Transactions by Country…………................................................................ 90

M&A Transactions……….…………………………………………………….……… 91

New Healthcare Investment Funds…………………..……………………………..……….. 96

Restructuring and Downsizing…….................................................................................. 98

TABLE of

CONTENTS

2017 First Quarter Healthcare IT Funding and M&A Executive Summary


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digital health funding and m&a€¦ · tempus, $170 million raised by doctolib, and $100...

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