health 2.0 quarterly report (q1 2015)

HEALTH 2.0 QUARTERLY REPORT :: Q1 2015

QUARTERLYREPORTS


BROUGHT TO YOU BY:


THE NEW CONSUMER HEALTH LANDSCAPE Changes in the structure and delivery of care are going to be driven by consumer behavior, the new technologies used by and designed for consumers, and the the need for big players to adapt. We’ve arrived at the perfect storm for a consumer health tsunami, and it’s being driven in large part by sensors, policy, and the “main street-ification” of care delivery and digital tools.

HEALTH CARE GOES RETAIL There’s a big move changing the natural core of health care delivery, starting from the edges with companies that are delivering care either in the worksite setting or most notably in the retail setting.

MASS-MARKET CONSUMER HEALTH PLATFORMS ARE HERE The ubiquity of new health technologies -- in particular sensors and accompanying platforms to collect and share data -- is ushering in an era of continuous health data collection that can be as seamless as a “setting” on your phone thanks to Apple and Samsung building health software directly into their operating systems.

MONEY, MONEY, MONEY Following a record breaking year of digital health funding in 2014, this year is off to a quick start with more than 50 deals taking place in Q1 for an astounding $400 million.

Four Big Things We Noticed…In Early 2015


1701 CONSUMER FACING

895 PROFESSIONAL

FACING

293 PATIENT PROVIDER COMMUNICATION

382 DATA, ANALYTICS,

& EXCHANGE

3271 ALL COMPANIES

Health 2.0 tracks companies in the Health 2.0 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.

AS OF JANUARY 2015, Health 2.0 Source tracked 3,271 companies of which 52% fall

into the consumer facing category. The

market continues to expand, but we’re still awaiting consolidation and identification of

‘winners’ in each category.

Health 2.0 Source: It feels like we’ve summited K2, but really we’ve just arrived at base camp…

HEALTH 2.0 SOURCE COMPANIES BY CATEGORY, JAN. 2015


EACH OF THE NINETEEN SEGMENTS of new health technologies that Health 2.0

tracks saw new companies founded in

2014. Many are still geared towards consumers and self-management, but a

significant crop of companies in the B2B

Clinician Workflow segment were focused

on developing new interfaces for EMRs.

“Why are companies still launching wearable trackers if adherence is proved to be decreasing?”* *Asked the ever wise & stylish Lisa Suennen to a panel of VCs at Health 2.0’s WinterTech

0 5 10 15 20 25 30 35 40

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

*Punxsutawney Phil predicted six more variations on the wrist-worn wearable tracker. No, he didn’t, but entrepreneurs are still innovating in circles around devices, data, and companion apps, looking for that perfect combination that jolts consumers into sustained engagement -- even if it’s passive!

*

NEW COMPANIES FOUNDED IN 2014, BY SEGMENT


2011

1.0 B 1.6 B 2.2 B

4.6 B

20122013

2014

2015

FUNDING FOR THE HEALTH 2.0 space has exploded over the past several years

and shows no signs of slowing down as

excitement around the space continues. Several companies went public in 2014

and even though they’re not all doing so

well as the stock market hits record highs,

we still expect to see more IPOs this year.

Can Funding In 2015 Possibly Eclipse 2014?

At this point, we keep counting dollars because all the cool kids are doing it – Rock Health, StartUp Health, Mercom Capital, and others. Their totals never match (and never will), but it doesn’t matter because the dollars can only tell us so much. We know funding is going up, we can point to where it’s going, but to figure out what’s really going on – that becomes a little more involved. Read on!

HEALTH 2.0 ANNUAL FUNDING


1,738M CONSUMER FACING

THE CONSUMER FACING AND PROFESSIONAL FACING categories continue to dominate funding, but don’t be

fooled – many consumer tools now include communication

functions and many analytic tools are designed specifically for providers. The boundaries are blurring, but it all makes

sense when you dive deeper into the products.

Annual Funding: The Remix

1,781M PROFESSIONAL

FACING

423M PATIENT PROVIDER COMMUNICATION

497M DATA, ANALYTICS,

& EXCHANGE

Q3: 262M

Q2: 1162M*

Q4: 118M Q1: 239M

Q1: 105M Q4: 192M

Q3: 93M

Q2: 107M

Q1: 88M

Q2: 123M Q3: 42M

Q4: 170M Q1: 265M

Q2: 483M Q3: 553M

Q4: 437M

*Two of the biggest deals of the year during April of 2014:

125M 100M

ANNUAL FUNDING BY CATEGORY AND QUARTER, 2014


HEALTH 2.0 HAS TRACKED more than $400 million in funding in the first quarter

of 2015, with almost half of that money

funneling into the consumer facing category. Here, we highlight some of the

notable deals across our four categories

January 2015 Funding by Health 2.0 Category

CONSUMER FACING PROFESSIONAL FACING

PATIENT PROVIDER COMMUNICATION

DATA, ANALYTICS, & EXCHANGE

NOTABLE FUNDING DEALS TO DATE IN 2015 (BY CATEGORY)

What we didn’t include in this chart are two deals that fall just outside the Health 2.0 space in what we’ll call ‘services’ for now – Iora Health ($28M) and Crossover Health ($15M). Those two deals taken in context with Walmart’s late 2014 attack on primary care and UnderArmour’s $710M MapMyFitness, MyFitnessPal, and Endomondo buying spree—all as we await the debut of the Apple Watch—show the first signs of a serious outside attack on the traditional health care delivery system.


Yes, this graph looks a lot like one we showed you earlier – of new company formation – but this graph is different. It’s a tally of all the products we track by segment. We are 100% unbiased* when we say products are the most important metric you can track in the space because it’s the products, their features, and traction – independent of shifting companies and big funding raises – that ultimately mold the shifting landscape in health care. *If you believe us, you have bigger problems to deal with.

THIS GRAPH SHOWS the current break down of products tracked in Health 2.0 Source by

segment. Most products are currently in the

consumer self-tracking segment, but there is also a solid distribution of products across

the professional facing category and a strong

group of products connecting these

two worlds.

If You Remember One Thing: Products Are Not Companies, Companies Are Not Products

0 100 200 300 400 500 600 700

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

CONSUMER FACING

PROFESSIONAL FACING

PATIENT PROVIDER COMMUNICATION

DATA, ANALYTICS, & EXCHANGE

TOTAL NUMBER OF PRODUCTS BY SEGMENT IN HEALTH 2.0 SOURCE

*If you believe us, you have bigger problems to deal with.


ABOUT HEALTH 2.0 MARKET INTEL Since 2007, Health 2.0 has catalyzed, tracked, and showcased the web, SaaS, cloud, mobile, and sensor revolution in health information technology. Our unique industry positioning and experience has given us an unrivaled depth of knowledge in the Health 2.0 space. Health 2.0 offers a comprehensive set of Market Intelligence offerings that range from this quarterly data release to a curated, contextualized newsletter, to monthly trend reports, 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 3,500 companies and 4,500 products. To learn more about Health 2.0 Market Intelligence offerings, please visit health2con.com/marketintel/market-intelligence-bundle 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 Project Manager Kim Krueger Research Analyst Rachael Charbonneau Graphic Designer


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 2015)

Healthcare

companies health

consumer health tsunami

base camp health

new companies

source companies

tracks companies

quarterly report

new technologies