trends in digital health investments and ecosystems

Trends in Digital HealthInvestments and Ecosystems

www.healthxl.org

Martin Kelly

Drivers for change: Cost

Healthcare for All

Globally healthcare is already well over a $6 trillion industry but nearly 70% of the world population

does not receive decent healthcare services.

Drivers for change: Consumerisation

Drivers for change: Capital

Source: Health 2.0

VC investment in digital health

Long range weather forecast is sunny

Source: Accenture

VC investment in digital health

The rise of the corporates

Source: Rock Health

Number of Corporate Deals 2011-2015

Source: Startup Health

Where are the deals?

Source: Startup Health

Where are the deals?

Innovation is needed everywhere

2 0 1 3 / 2 0 1 4J une to Ma rc h

2 0 1 4 / 2 0 1 5J une to Ma rc h

Fu nd in g in

U

S D

(p er

Bi lli on)

2013/2014

Big D at a

Co n n e c t e d Heal th

Be h aviourCh a n g e

0.31

1.321.26

0.55

0.29

0.78

VC investment in digital health in $ billions

Moonshots: More than incremental innovation

Investment does not equal innovation

It takes an average of 17 years for new knowledge generated… to be incorporated into practice…

and even then application is highly uneven.

Source: IOM report on Quality of Care in America

Why collaboration is important

Why collaboration is important

Why collaboration is important

Why collaboration is important

Healthcare problems are too big to be solved by

just one firm

Large companies can’t innovate internally without

a burning platform

Start-ups (source of innovation) can’t scale on their own

New approaches to innovation (quick and focused) are required

Collaboration is easy to say but hard to do

We created HealthXL because new types of collaboration are needed

Lisa Suennen Managing Partner, Venture

Valkyrie LLC

Sean HoganGeneral Manager - Healthcare, IBM

Chris CoburnVice President - Innovation,

Partners HealthCare

Esther DysonFounder, HICCUP

JC SimbansVP - Life Sciences

& Digital Health

Maulik Majmudar, MDChief Clinical Officer,

QuanttusSven Junkergård

CTO at Zephyr Health

Vishal GulatiPartner, DFJ

Seemant JauhariChief Executive Officer Apollo

Research & Innovations

Stephen McHaleCEO of Explorys

Marco MohwinckelGlobal Head Integrated Care

Solutions

Omri ShorCEO, MedisafeNorrie Daroga

CEO, iDAvatars

Sridhar Iyengar Founder, Misfit Founder,

AgaMatrix

William TarantoPresident, Merck Global Health Innovation Fund

Gary FingerhutExecutive Director

Innovations, Cleveland Clinic

HXLadvisor

HXLadvisor

HXLadvisor

Innovation is needed everywhere

Investment continues to flow into new digital health sector

Difficult to identify unique solutions

Many point solutions lack integration

Innovation is needed everywhere

New forms of collaboration are happening

Significant role for corporate VC

New partnerships/alliance models starting to emerge

Innovation is needed everywhere

If there is a bubble it is only a problem in the US Market

Market in US is significantly bigger that ROW

Unclear that US companies will expand successfully internationally

Thank you

www.healthxl.org

Martin Kellymartin@healthxl.org