digital health insights for the 50+ market...early-stage deal count in 50+ market grew more than...
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Published: January 14, 2014
startuphealth.com/insights
Digital HealthInsights for the 50+ Market2013 Annual Report
A REPORT PREPARED FOR
1
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insightsPublished: January 14, 2014
Digital health and wellness investments have rapidly expanded from $999M in 2010 to $2.82B
Deal count more than quadrupled from 139 to 575
$958M $1.57B $2B $2.32B
512
0
125
250
375
500
2010 2011 2012 2013$0M
$750M
$1,500M
$2,250M
$3,000M
Deal Count Total Funding
139
234
440
575
Deal Count Total Funding
$999M $1.55B $2.03B $2.82B
2
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insightsPublished: January 14, 2014
Early stage innovation is the primary growth driver because of the following conditions:
Change: Healthcare Reform
Technology: Mobile & Digital Health
Acceleration: Chronic Disease, Aging & Cost
Opportunity: Golden Age of Entrepreneurship
$283M
$590M
2011 2012
$967M
100
0
200
300
400
2010 2013
Early-Stage Deal Count
Mid-Stage Deal Count Venture-Round Deal Count
73
145
291
410
41 43
86 99
1223
Late-Stage Deal Count Total Funding
$641M
$0M
$200M
$400M
$600M
$800M
Deal CountTotal
Funding
1731
71% of deals were in Seed & Series A rounds
3
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insightsPublished: January 14, 2014
SocialEngagement
PhysicalFitness
MedicationManagement
Aging withVitality
NavigatingThe Healthcare
System
Vtial SignMonintoring
Behavioral andEmotional Health
Diet andNutrition
Emergency Detectionand Response
Traditional 50+ Market50+ referred only to
the aging market
Preventative medicine is a growing focus among the 50+ market leading to increased opportunity across the nine areas of digital health and wellness innovation
Opportunities in the 50+ Market
4
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insightsPublished: January 14, 2014
Funding in the 50+ market rose 33%from $722M last year to $1.15B in 2013
0
75
150
225
300
2010 2011 2012 2013$0M
$250M
$500M
$750M
$1,000M
Deal Count Total Funding
49
95
186
248
Deal Count Total Funding
$425M $626M $722M $1.15BM
5
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insightsPublished: January 14, 2014
Early-stage deal count in 50+ market grew more than seven-fold from 25 in 2010 to 183 in 2013
$187M
$0M
$75M
$150M
$225M
$300M
$375M
TotalFundingDeal Count
Early-Stage Deal Count
Mid-Stage Deal Count Venture-Round Deal Count
Late-Stage Deal Count Total Funding
50
0
100
150
200
250
2010 2011 2012 2013
183
25
60
132
16 1929 38
5 8 10 16
$221M
$406M
$89M
6
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insightsPublished: January 14, 2014
$425M
$999M
2010
2010 2011 2012 2013
2011
$626M
$1.55B
2012
$722M
$2.03B
2013
$1.15B
$2.82B
Digital Health & Wellness 50+
50%
40%
30%
Deal Count Funding
Tota
l Fun
ding
50+ health investment sector as percent of total digital health & wellness
35%
42%41%
40%
42%
36%
43%
41%
The 50+ market continues to grow at the pace of the digital health and wellness market
7
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insightsPublished: January 14, 2014
Stage distribution of 50+ market deals and funding mirrors industry-wide activity
0%
25%
50%
75%
100%
Deal Count Funding0%
25%
50%
75%
100%
Deal Count Funding
Early-Stage Deal Count
Mid-Stage Deal Count Venture-Round Deal Count
Late-Stage Deal Count
2013 Digital Health & Wellness 2013 50+ Market
8
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insightsPublished: January 14, 2014
2013 Notable VCs by stage in 50+ market
SEED SERIES A SERIES B SERIES C SERIES ESERIES D
denotes 3+ investments
9
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insightsPublished: January 14, 2014
Social Engagement
NOTABLE DEALS IN 2013
Third highest year-over-year growth in median size deal value at 120%
NOTABLE INVESTORS
MARKET INSIGHT*: Estimates suggest 40-80% of the 50-64 population and 30-70% of the 65+ population would be interested in a social engagement solution
$8MSeries C
$900KSeed
$7MSeries C
$4.3MSeries A
*Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights
0
8
15
23
30
$43M $26M $105M $149M$0M
$38M
$75M
$113M
$150M
Deal Count Total Funding
4
9
27
31
2010 2011 2012 2013Deal Count Total Funding
2013 Activity
Deal Count Total Funding
Early-Stage Mid-Stage Venture-Stage
10
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insightsPublished: January 14, 2014
Medication ManagementNewest market opportunity in 50+ Market
MARKET INSIGHT*: 70% of people ages 50-64 take at least two medications and 87% of people 65 and older take at least two medications
NOTABLE DEALS IN 2013
NOTABLE INVESTORS
$3MSeed
$1MSeed
$1.16MSeed
$1.35MSeed
*Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights
3
10
13
$13.39M $6.72M $8.46M0
3
6
8
11
Deal Count
$0M
$3M
$7M
$10M
$13M
Total Funding
Deal Count Total Funding2011 2012 2013
2013 Activity
Deal Count Total Funding
Early-Stage Mid-Stage Venture-Stage
11
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insightsPublished: January 14, 2014
Emergency Detection and ResponseSecond highest proportion of early-stage funding at 85%
MARKET INSIGHT*: 40-70% of the 75+ population and 10-30% of the 50-74 population would be interested in emergency detection or response services
NOTABLE DEALS IN 2013
NOTABLE INVESTORS
$4MSeries A
$2.5MSeed
$3.19M Series A
$7.3MSeries B
*Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights
Deal Count Total Funding2010 2011 2012 2013
$21M $28M $40M $30M$0M
$10M
$20M
$30M
$40M
45
9
12
Total Funding
0
3
6
8
11
Deal Count
2013 Activity
Deal Count Total Funding
Early-Stage Mid-Stage Late-Stage
HotDot
12
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insightsPublished: January 14, 2014
Behavioral and Emotional HealthHighest proportion of early-stage deals at 86%
MARKET INSIGHT*: Estimates predict 10-30% of the 50+ population would be interested in a behavioral or emotional health solution
NOTABLE DEALS IN 2013
NOTABLE INVESTORS
$9.7MSeries A
$3MSeries A
$5MSeries A
$2MSeries A
*Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights
0
5
10
15
20
2010 2011 2012 2013
$13M $55M $75M $41M$0M
$20M
$40M
$60M
$80M
6
11
1721
Deal Count Total Funding
Deal Count Total Funding
2013 Activity
Deal Count Total Funding
Early-Stage Mid-Stage Venture-Stage
13
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insightsPublished: January 14, 2014
Physical FitnessSecond highest proportion of early-stage deals at 79%
MARKET INSIGHT*: Five-year total revenues as high as $1.7 billion or as low as $1.1 billion
NOTABLE DEALS IN 2013
NOTABLE INVESTORS
$43MSeries D
$14.5MSeries B
$18MSeries A
$23MSeries B
*Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights
0
10
20
30
40
2010 2011 2012 2013
$23M $70M $137M $166M$0M
$38M
$75M
$113M
$150M
6
13
34 38
Deal Count Total Funding
Deal Count Total Funding
2013 Activity
Deal Count Total Funding
Early-Stage Mid-Stage Late-Stage Venture-Stage
14
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insightsPublished: January 14, 2014
Diet and NutritionLargest year-over-year growth in funding at 208%
MARKET INSIGHT*: Fee-based diet and nutrition management services and technology/software licensing fees will be the two dominant revenue models for the diet and nutrition market
NOTABLE DEALS IN 2013
NOTABLE INVESTORS
$30MSeries A
$850KSeed
$1.52MSeed
*Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights
0
4
8
11
15
2010 2011 2012 2013
$17M $27M $23M $70M$0M
$18M
$35M
$53M
$70M
7
10
15
12
Deal Count Total Funding
Deal Count Total Funding
2013 Activity
Deal Count Total Funding
Early-Stage Mid-Stage Late-Stage
15
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insightsPublished: January 14, 2014
Navigating the Healthcare SystemMost actively funded opportunity at 100 deals and $492M in funding
MARKET INSIGHT*: Fee-based case assistance service and advertising sales will be the two dominant revenue models for the care navigation market
NOTABLE DEALS IN 2013
NOTABLE INVESTORS
$68M Venture Round
$6MSeries A
$40MSeries A
$2.1MSeries A
*Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights
0
20
40
60
80
100
2010 2011 2012 2013
$130M $280M $271M $492M$0M
$100M
$200M
$300M
$400M
14
40
63
100Deal Count Total Funding
Deal Count Total Funding
$500M
2013 Activity
Deal Count Total Funding
Early-Stage Mid-Stage Late-Stage Venture-Stage
16
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insightsPublished: January 14, 2014
Aging with VitalityHighest proportion of mid-stage funding at 46%
MARKET INSIGHT*: The Affected Population of this market hit 101 million at the end of 2012 and will reach 113 million by 2018
NOTABLE DEALS IN 2013
NOTABLE INVESTORS
$31MSeries A
$8.4MSeries C
$30MSeries B
$10MSeries A
*Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights
0
10
20
30
40
$50M $136M $143M $177M$0M
$50M
$100M
$150M
$200M
12
19
4037
2011 20132011 2012
Deal Count Total Funding
Deal Count Total Funding
2013 Activity
Deal Count Total Funding
Early-Stage Mid-Stage Late-Stage
17
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insightsPublished: January 14, 2014
Vital Sign MonitoringLargest median deal size at $3.69M
MARKET INSIGHT: An estimated 78 million consumers 50+ have at least one chronic condition
NOTABLE DEALS IN 2013
NOTABLE INVESTORS
$62MSeries F
$20MSeries D
$32MSeries C
$15MSeries B
*Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights
0
10
20
30
40
50
2010 2011 2012 2013
$228M $136M $126M $366M$0M
$75M
$150M
$225M
$300M
$375M
14
20
34
46
Deal Count Total Funding
Deal Count Total Funding
2013 Activity
Deal Count Total Funding
Early-Stage Mid-Stage Late-Stage Venture-Stage
18
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insightsPublished: January 14, 2014
The nine areas present vast emerging market opportunities
SOCIAL ENGAGEMENTThird highest year-over-
year growth in median
size deal value at 120%
MEDICATION MANAGEMENTNewest market opportunity in 50+
EMERGENCY DETECTION AND RESPONSESecond highest
proportion of early
funding at 85%
BEHAVIORAL ANDEMOTIONAL HEALTHHighest proportion of early-stage deals at 86%
PHYSICAL FITNESSSecond highest proportion
of early-stage deals at 79%
DIET AND NUTRITIONLargest year-over- year growth in funding at 208%
NAVIGATING THEHEALTHCARE SYSTEMMost actively funded opportunity at 100 deals and $492M
AGING WITH VITALITYHighest proportion of mid-
stage funding at 46%
VITAL SIGN MONITORINGLargest median deal size at $3.69M
AGING WITHVITALITY
VTIAL SIGNMONINTORING
PHYSICALFITNESS
DIET ANDNUTRITION
SOCIALENGAGEMENT
BEHAVIORAL ANDEMOTIONAL HEALTH
MEDICATIONMANAGEMENT
CARENAVIGATION
EMERGENCY DETECTIONAND RESPONSE
AGING WITHVITALITY
VTIAL SIGNMONINTORING
PHYSICALFITNESS
DIET ANDNUTRITION
SOCIALENGAGEMENT
BEHAVIORAL ANDEMOTIONAL HEALTH
MEDICATIONMANAGEMENT
CARENAVIGATION
EMERGENCY DETECTIONAND RESPONSE
AGING WITHVITALITY
VTIAL SIGNMONINTORING
PHYSICALFITNESS
DIET ANDNUTRITION
SOCIALENGAGEMENT
BEHAVIORAL ANDEMOTIONAL HEALTH
MEDICATIONMANAGEMENT
CARENAVIGATION
EMERGENCY DETECTIONAND RESPONSE
AGING WITHVITALITY
VTIAL SIGNMONINTORING
PHYSICALFITNESS
DIET ANDNUTRITION
SOCIALENGAGEMENT
BEHAVIORAL ANDEMOTIONAL HEALTH
MEDICATIONMANAGEMENT
CARENAVIGATION
EMERGENCY DETECTIONAND RESPONSE
AGING WITHVITALITY
VTIAL SIGNMONINTORING
PHYSICALFITNESS
DIET ANDNUTRITION
SOCIALENGAGEMENT
BEHAVIORAL ANDEMOTIONAL HEALTH
MEDICATIONMANAGEMENT
CARENAVIGATION
EMERGENCY DETECTIONAND RESPONSE
AGING WITHVITALITY
VTIAL SIGNMONINTORING
PHYSICALFITNESS
DIET ANDNUTRITION
SOCIALENGAGEMENT
BEHAVIORAL ANDEMOTIONAL HEALTH
MEDICATIONMANAGEMENT
CARENAVIGATION
EMERGENCY DETECTIONAND RESPONSE
AGING WITHVITALITY
VTIAL SIGNMONINTORING
PHYSICALFITNESS
DIET ANDNUTRITION
SOCIALENGAGEMENT
BEHAVIORAL ANDEMOTIONAL HEALTH
MEDICATIONMANAGEMENT
CARENAVIGATION
EMERGENCY DETECTIONAND RESPONSE
AGING WITHVITALITY
VTIAL SIGNMONINTORING
PHYSICALFITNESS
DIET ANDNUTRITION
SOCIALENGAGEMENT
BEHAVIORAL ANDEMOTIONAL HEALTH
MEDICATIONMANAGEMENT
CARENAVIGATION
EMERGENCY DETECTIONAND RESPONSE
AGING WITHVITALITY
VTIAL SIGNMONINTORING
PHYSICALFITNESS
DIET ANDNUTRITION
SOCIALENGAGEMENT
BEHAVIORAL ANDEMOTIONAL HEALTH
MEDICATIONMANAGEMENT
CARENAVIGATION
EMERGENCY DETECTIONAND RESPONSE
19
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insightsPublished: January 14, 2014
AGING WITHVITALITY
VTIAL SIGNMONINTORING
PHYSICALFITNESS
DIET ANDNUTRITION
SOCIALENGAGEMENT
BEHAVIORAL ANDEMOTIONAL HEALTH
MEDICATIONMANAGEMENT
CARENAVIGATION
EMERGENCY DETECTIONAND RESPONSE
Vast 50+ Market Opportunities
The nine health innovation frontiers represent a vast and under-addressed market opportunity.
Breakthrough technologies, innovative services, and disruptive business models will benefit more than 100 million people 50+ and represent $20 billion in revenue by 2018.
Source: Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights
20
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insightsPublished: January 14, 2014
Digital Health& Wellness
50+
Digital Health and 50+ Market Snapshot
50+ OPPORTUNITY
Social Engagement
Medication Management
Emergency Detection & Response
Behavioral and Emotional Health
Physical Fitness
Diet and Nutrition
Navigating the Healthcare System
Aging with Vitality
Vital Sign Monitoring
DEAL COUNT
27 31
10 13
9 12
17 21
34 38
15 12
63 100
40 37
34 46
FUNDING
$105M $149M
$6.72M $8.46M
$40M $30M
$75M $41M
$136M $166M
$23M $70M
$271M $492M
$143M $177M
$126M $366M
MEDIAN DEAL SIZE
$560K $1.23M
$190K $432K
$2.75M $2.40M
$1.09M $845K
$2.58M $1.58M
$1.10M $845K
$1.70M $1.35M
$915K $1.90M
$1.27M $3.69M
Key: 2012 | 2013
2013 Median Round Size
$0M
$4M
$8M
$11M
$15M
Seed Series A Series B Series C Series D Series E
Digital Health and Wellness 50+
DEAL COUNTMARKET FUNDING MEDIAN DEAL
440 575
186 248
$2.03B $2.82B
$722M $1.15B
$1.29M $1.40M
$1.24M $1.30M
21
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insightsPublished: January 14, 2014
MethodologiesThe data presented herein is from StartUp Health Insights, which was gathered from public non-grant funding information from SEC filings, company press releases, CrunchBase, AngelList, and other news sources as of January 3, 2013. The data spans from January 1, 2010 through December 31, 2013.
The 50+ health investment sector, as defined by AARP, is comprised of the following market opportunities and some of their respective needs that are addressed:
MARKET OPPORTUNITY
Social Engagement
Medication Management
Emergency Detection & Response
Behavioral and Emotional Health
Physical Fitness
Diet and Nutrition
Navigating the Healthcare System
Aging with Vitality
Vital Sign Monitoring
EXAMPLES OF NEEDS ADDRESSED
Staying connected socially
Managing multiple medications
Detecting falls
Stress reduction
Improving muscle strength
Eating healthy and portion control
Managing healthcare costs
Aiding in memory and cognition
Keeping blood pressure in range
Keeping mobilized
Preventing in-home accidents
Sending alerts when lost
Receiving divorce/grief support
Age-appropriate exercise
Maintaining a healthy weight
Evaluating quality of care
Improving or aiding vision
Detecting skin problems
Stimulating intellect
Sharpening memory
Preventing in-home accidents
Managing life phase transitions
Maintaining healthy weight
Reducing bad cholesterol
Plan for end of life care
Improving or aiding hearing
Improving sleep quality
Some deals (slides 9-17) may represent more than one sector, and as such, may be included in multiple categories. However, neither the aggregate data on the “digital health and wellness” industry (slides 1-2) nor the “50+” industry (slides 4-7) include double counting.
The funding stages are categorized as follows: Early-Stage: Incubator, Seed, & Series A Mid-Stage: Series B & CLate-Stage: Series D, E & FVenture-Round: Stage not disclosed publicly
22
A StartUp Health Insights Report. Get comprehensive funding data at startuphealth.com/insightsPublished: January 14, 2014
About
AARP’s vision is to stimulate innovation and entrepreneurship in the market place around breakthrough products, experiences, and business models for health technologies benefiting the 50+ market.
Startup Health, a global startup platform to accelerate health and wellness innovation, represents a new model for helping entrepreneurs succeed in the health sector. StartUp Health is on a mission to inspire, educate, and provide access for 1,000 digital health startups to reimagine and transform healthcare by 2020.
Published: January 14, 2014
startuphealth.com/insights
Digital HealthInsights Report forthe 50+ Market
A REPORT PREPARED FOR
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