health 2.0 quarterly report (q1 2016)
TRANSCRIPT
HEALTH 2.0 QUARTERLY REPORT :: Q1 2016
QUARTERLYREPORTS
HEALTH 2.0 QUARTERLY REPORT :: Q1 2016
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HEALTH 2.0 QUARTERLY REPORT :: Q1 2016
BUZZWORD OF THE DAY: INTEROPERABILITY With the demise of meaningful use, the ONC is looking for more effective ways of
incentivizing EHR interoperability. Will they succeed? HIMSS 2016 focused heavily
on the issue, which is critical to the success of value-based care. In a step forward,
Salesforce released Health Cloud, which notably pulls data from both EHRs and
wearables. KLAS also released rankings on interoperability and customer
satisfaction - Epic and InterSystems took high honors.
RISE OF BABY TECH Digital health is discovering what retailers have always known - people spend big on
their kids. CES debuted their first Baby Tech summit in January. Glow, a women’s health
startup, launched an infant tracking app called Glow Baby. San Diego-based Thrive
raised funds to launch a smart baby bottle. Retailers are working on it, too – toy giant
Mattel acquired baby wearable company Sproutling. Jessica Alba’s Honest Company
discreetly purchased parenting network Alt12, revealed in IPO filings last month.
MORE GOOD NEWS FOR TELEHEALTH Medicaid passed a final ruling this month that would allow reimbursement for
telehealth visits at the state level. Although the ruling has strings attached, this is
great news for the exploding telehealth industry. The Senate has also introduced
a bipartisan bill to increase reimbursement expansion and eliminate clunky
restrictions. Will this be the one bill that Congress agrees on?
SPOTLIGHT ON HEALTH DISPARITIES SMACK health solutions are focusing more on the most vulnerable patient
populations. Omada Health tweaked its Prevent program for low-literacy patients
living in food deserts. Babylon, which raised $25M this quarter, will use funds to
launch remote care visits in Rwanda. Call9 raised $10M to provide emergency care
consults for nursing home patients.
Things We Care About, Q1 2016
H
HEALTH 2.0 QUARTERLY REPORT :: Q1 2016
1900 CONSUMER FACING
1012 PROFESSIONAL
FACING
343 PATIENT PROVIDER COMMUNICATION
470 DATA, ANALYTICS,
& EXCHANGE
3725 ALL COMPANIES
Health 2.0 tracks companies in our 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.
HEALTH 2.0 SOURCE ticked up this quarter, adding 50 companies overall. The Consumer
Facing category added 25 companies, and the
Data, Analytics, and Exchange category added 12 companies.
Health 2.0 Source: Total Companies By Category
HEALTH 2.0 SOURCE COMPANIES BY CATEGORY, MARCH 2016
HEALTH 2.0 QUARTERLY REPORT :: Q1 2016
.2%
.7%.6%
1%5%
17%75%
The lion’s share is still in North America, with 75% of digital health companies located there. However, a strong contingent belongs to
Europe with 17%, as emerging sectors in Asia, Latin America, MENA
and even Africa continue to expand.
AS THE HEALTH 2.0 COMMUNITY grows around the world, it’s being reflected in the Source database. Here’s a map of the world
showing the global distribution of companies
Health 2.0 Around the World
HEALTH 2.0 QUARTERLY REPORT :: Q1 2016
FUNDING FOR THE HEALTH 2.0 space has started the new year strong. Approximately
$1.7B was invested from January through
March, almost doubling the $1B of investments made last quarter.
Funding Keeps Flowing
Funding for the first quarter has topped that of last year’s. Q1 of 2016 totaled $1.7B in deals compared to 2016’s $1.5B. These numbers portend another important growth year for digital health.
HEALTH 2.0 ANNUAL FUNDING
2011
1.0 B 1.6 B 2.2 B
4.6 B 4.8 B
2012
1.7 B
2016
2013
2014 2015
HEALTH 2.0 QUARTERLY REPORT :: Q1 2016
1.14B CONSUMER FACING
THE CONSUMER FACING category continued to lead in venture funding, boosted by huge deals inked for Oscar and
Flatiron Health. Firms focused on population health and data
analytics drove this quarter’s funding growth.
Consumer Facing Funding STILL On Top
127M PROFESSIONAL
FACING
200M PATIENT PROVIDER
COMMS
312M DATA, ANALYTICS,
& EXCHANGE
Two of the biggest deals this quarter:
*175M *400M
2016 FUNDING BY CATEGORY AND QUARTER
HEALTH 2.0 QUARTERLY REPORT :: Q1 2016
THE TOP DEALS of Q1 2016 totaled to $1.15B and represent nearly 70% of total
funding this quarter.
Hot Stuff: Top Funding Deals in Q1, 2016
CONSUMER FACING PROFESSIONAL FACING
PATIENT PROVIDER COMMUNICATION
DATA, ANALYTICS, & EXCHANGE
TOP FUNDING DEALS OF Q1 2016
SMACK health’s largest fundraises went to consumer-facing firms, but data companies demonstrated strong value. Health insurer unicorn Oscar raised $400M as it strategizes to enroll 1M members by 2021. Jawbone ($165M) raised significant funds, but in a rocky down round. Virtual therapy companies MindMaze ($100M) and Akili ($35M) look to improve cognitive impairments and gain FDA approval. Captricity ($35M) and Flatiron ($175M), both data analytics companies, raised large rounds as they eye an IPO in the near future.
400M 200M 100M 50M 30M
HEALTH 2.0 QUARTERLY REPORT :: Q1 2016 0 500 1000 1500 2000 2500
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
This quarter, our team added hundreds of products across all categories to Source. Trackers continue to stay hot in digital health, but clinician workflow products are also diversifying rapidly. We expect 2016 to be a year of rich product releases as startups utilize their record-high funding from 2015 to wow us.
THIS GRAPH SHOWS the current break down of products tracked in Health 2.0 Source by
segment. The lighter color at the end of each
bar represents growth in that segment during Q1 2016.
If You Remember One Thing: Products Are Not Companies, Companies Are Not Products
CONSUMER FACING
PROFESSIONAL FACING
PATIENT PROVIDER COMMUNICATION
DATA, ANALYTICS, & EXCHANGE
TOTAL NUMBER OF PRODUCTS BY SEGMENT, HEALTH 2.0 SOURCE, JANUARY 2016
HEALTH 2.0 QUARTERLY REPORT :: Q1 2016
ABOUT HEALTH 2.0 MARKET INTEL Since 2007, Health 2.0 has catalyzed, tracked, and showcased the SMACK (social/sensor, mobile, analytics, cloud & kindness!) revolution in health information technology. Our longevity and independent industry positioning gives us an unrivaled depth of knowledge. Health 2.0’s Market Intelligence offerings range from this quarterly data release 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 3,700 companies and 4,500 products. To learn more about Health 2.0 Market Intelligence offerings, please visit health2con,com or email [email protected]
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 Data Analyst Rachael Charbonneau Graphic Designer Sofia Noori Data Intern
HEALTH 2.0 QUARTERLY REPORT :: Q1 2016
ABOUT Health 2.0 is the premiere showcase and catalyst for the advancement of new health technologies. Through a global series of conferences, thought leadership roundtables, developer competitions, pilot programs, and leading market intelligence, Health 2.0 drives the innovation and collaboration necessary to transform health and health care. For more information visit health2con.com
HEALTH 2.0 QUARTERLY REPORT :: Q1 2016