Digital Health Insights Report for the 50+ Market · Early-stage deal count in 50+ market grew more...

Published: December 10, 2013

Digital HealthInsights Report forthe 50+ Market

A REPORT PREPARED FOR

1

Digital Health Insights Report for the 50+ Market downloadable at www.startuphealth.com/aarpPublished: December 10, 2013

Digital health and wellness investments have rapidly expanded from $958M in 2010 to $2.29B

Deal count more than tripled from 135 to 465

$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

135

226

429

465


$958M $1.56B $2.03B $2.29B

2


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

$584M

2011 2012

$795M

100

0

200

300

400

2010 2013

Early-Stage Deal Count

Mid-Stage Deal Count Venture-Round Deal Count

72

142

286

339

40 46

88 77

1217

23 30

Late-Stage Deal Count Total Funding

$634M

$0M

$200M

$400M

$600M

$800M


73% of deals were in Seed & Series A rounds

3


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


Funding in the 50+ market rose 28%from $723M last year to $928M in 2013

0

75

150

225

300

2010 2011 2012 2013$0M

$250M

$500M

$750M

$1,000M


49

92

183

203


$413M $618M $723M $928M

5


Early-stage deal count in 50+ market grew more than six-fold from 24 in 2010 to 153 by the end of Q3

$72M

$184M

$0M

$75M

$150M

$225M

$300M

Total FundingDeal Count



Late-Stage Deal Count Total Funding

50

0

100

150

200

2010 2011 2012 2013

153

24

58

130

17 1929 29

5 8 10 16

$221M

$335M

6


$413M

$958M

2010

2010 2011 2012 2013

2011

$618M

$1.56B

2012

$723M

$2.03B

2013

$928M

$2.29B

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

36%

43%41%

40%

43%

36%

44%

41%

The 50+ market continues to grow at the pace of the digital health and wellness market

7


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



Late-Stage Deal Count

2013 Digital Health & Wellness 2013 50+ Market

8


2013 Top VCs by stage in 50+ market

SEED SERIES A SERIES B SERIES C SERIES ESERIES D

denotes 3+ investments

9


Social Engagement

NOTABLE DEALS IN 2013

Largest year-over-year growth in median size deal value at 265%

NOTABLE INVESTORS

MARKET FACT*: Estimates suggest 40-80% of the 50-64 population and 30-70% of the 65+ population would be interested in a social engagement solution

Deal Count

$8MSeries C

$5MSeries B

$7MSeries C

$4.3MSeries A

2013 Activity

Total Funding

Early-Stage Mid-Stage Late-Stage Venture-Stage

*Health Innovation Frontiers Report downloadable at www.aarp.org/50plusinsights

0

8

15

23

30

$43M $26M $105M $142M$0M

$38M

$75M

$113M

$150M


4

9

2826

2010 2011 2012 2013Deal Count Total Funding

10


Medication ManagementNewest market opportunity in 50+ Market

MARKET FACT*: 70% of people ages 50-64 take at least two medications and 87% of people 65 and older take at least two medications


Deal Count

2013 Activity

Total Funding


NOTABLE INVESTORS

$3MSeed

$1MSeed

$1.16MSeed

$632KSeries B


3

10

11

$13.39M $6.72M $7.06M0

3

6

8

11

Deal Count

$0M

$3M

$7M

$10M

$13M

Total Funding

Deal Count Total Funding2011 2012 2013

11


Emergency Detection and ResponseSecond highest year-over-year deal count growth at 22%

MARKET FACT*: 40-70% of the 75+ population and 10-30% of the 50-74 population would be interested in emergency detection or response services


Deal Count

2013 Activity

Total Funding


NOTABLE INVESTORS

$4MSeries A

$2.5MSeed

$3.19M Series A

$2.4MSeries D


Deal Count Total Funding2010 2011 2012 2013

$21M $28M $40M $23M$0M

$10M

$20M

$30M

$40M

45

9

11

Total Funding

0

3

6

8

11

Deal Count

12


Behavioral and Emotional HealthHighest proportion of early-stage deals at 94%

MARKET FACT*: Estimates predict 10-30% of the 50+ population would be interested in a behavioral or emotional health solution


Deal Count

2013 Activity

Total Funding


NOTABLE INVESTORS

$9.7MSeries A

$3MSeries A

$5MSeries A

$2MSeries A


0

5

10

15

20

2010 2011 2012 2013

$13M $55M $75M $35M$0M

$20M

$40M

$60M

$80M

6

10

17 17



13


Physical FitnessSecond highest number of incubator & seed investments at 19 deals

MARKET FACT*: Five-year total revenues as high as $1.7 billion or as low as $1.1 billion


Deal Count

2013 Activity

Total Funding


NOTABLE INVESTORS

$43MSeries D

$14.5MSeries B

$18MSeries A

$5MSeries C


0

10

20

30

40

2010 2011 2012 2013

$23M $70M $134M $107M$0M

$38M

$75M

$113M

$150M

6

13

3229



14


Diet and NutritionLargest year-over-year growth in total funding at 171%

MARKET FACT*: 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


Deal Count

2013 Activity

Total Funding


NOTABLE INVESTORS

$30MSeries A

$850KSeed

$1.52MSeed


0

4

8

11

15

2010 2011 2012 2013

$17M $27M $23M $62M$0M

$18M

$35M

$53M

$70M

7

10

15

11



15


Navigating the Healthcare SystemMost actively funded opportunity in 50+ market at 78 deals and $384M in funding

MARKET FACT*: Fee-based case assistance service and advertising sales will be the two dominant revenue models for the care navigation market


Deal Count

2013 Activity

Total Funding


NOTABLE INVESTORS

$68.25M Venture Round

$4MSeries A

$40MSeries A

$2.1MSeries A


0

20

40

60

80

2010 2011 2012 2013

$113M $277M $268M $384M$0M

$100M

$200M

$300M

$400M

13

39

61

78Deal Count Total Funding


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Aging with VitalityThird highest year-over-year growth in median deal size at 119%

MARKET FACT*: The Affected Population of this market hit 101 million at the end of 2012 and will reach 113 million by 2018


Deal Count

2013 Activity

Total Funding


NOTABLE INVESTORS

$31.13MSeries A

$8.4MSeries C

$30MSeries B

$7.45MSeries B


0

10

20

30

40

$50M $135M $143M $166M$0M

$50M

$100M

$150M

$200M

12

18

40

35

2011 20132011 2012



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Vital Sign MonitoringLargest median deal size at $2.76M

MARKET FACT*: An estimated 78 million consumers 50+ have at least one chronic condition


Deal Count

2013 Activity

Total Funding


NOTABLE INVESTORS

$62.5MSeries F

$18.15MSeries D

$32.19MSeries C

$11.5MSeries B


0

10

20

30

40

2010 2011 2012 2013

$228M $131M $119M $266M$0M

$75M

$150M

$225M

$300M

14

18

3336



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The nine areas present vast emerging market opportunities

SOCIAL ENGAGEMENTLargest year-over-year growth in median size deal value at 265%

MEDICATION MANAGEMENTNewest market opportunity in 50+

EMERGENCY DETECTION AND RESPONSESecond highest year- over-year deal count growth at 22%

BEHAVIORAL ANDEMOTIONAL HEALTHHighest proportion of early-stage deals at 94%

PHYSICAL FITNESSSecond highest numberof incubator and seedinvestments at 19 deals

DIET AND NUTRITIONLargest year-over- year growth in total funding at 171%

NAVIGATING THEHEALTHCARE SYSTEMMost actively funded opportunity in 50+ Market at 78 deals and $384M in funding

AGING WITH VITALITYThird highest year-over-year growth inmedian deal size at 119%

VITAL SIGN MONITORINGLargest median deal size at $2.76M

AGING WITHVITALITY

VTIAL SIGNMONINTORING

PHYSICALFITNESS

DIET ANDNUTRITION

SOCIALENGAGEMENT

BEHAVIORAL ANDEMOTIONAL HEALTH

MEDICATIONMANAGEMENT

CARENAVIGATION

EMERGENCY DETECTIONAND RESPONSE

AGING WITHVITALITY


PHYSICALFITNESS

DIET ANDNUTRITION

SOCIALENGAGEMENT



CARENAVIGATION


AGING WITHVITALITY


PHYSICALFITNESS

DIET ANDNUTRITION

SOCIALENGAGEMENT



CARENAVIGATION


AGING WITHVITALITY


PHYSICALFITNESS

DIET ANDNUTRITION

SOCIALENGAGEMENT



CARENAVIGATION


AGING WITHVITALITY


PHYSICALFITNESS

DIET ANDNUTRITION

SOCIALENGAGEMENT



CARENAVIGATION


AGING WITHVITALITY


PHYSICALFITNESS

DIET ANDNUTRITION

SOCIALENGAGEMENT



CARENAVIGATION


AGING WITHVITALITY


PHYSICALFITNESS

DIET ANDNUTRITION

SOCIALENGAGEMENT



CARENAVIGATION


AGING WITHVITALITY


PHYSICALFITNESS

DIET ANDNUTRITION

SOCIALENGAGEMENT



CARENAVIGATION


AGING WITHVITALITY


PHYSICALFITNESS

DIET ANDNUTRITION

SOCIALENGAGEMENT



CARENAVIGATION


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AGING WITHVITALITY


PHYSICALFITNESS

DIET ANDNUTRITION

SOCIALENGAGEMENT



CARENAVIGATION


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

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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

28 26

10 11

9 11

17 17

32 29

15 11

61 78

40 35

33 36

FUNDING

$105M $142M

$6.72M $7.06M

$40M $23M

$75M $35M

$134M $107M

$23M $62M

$268M $384M

$143M $166M

$119M $266M

MEDIAN DEAL SIZE

$520K $1.90M

$190K $432K

$2.75M $1.85M

$1.09M $758K

$2.56M $935K

$1.10M $1.44M

$1.78M $750K

$915K $2.00M

$1.25M $2.76M

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

429 465

183 203

$2.03B $2.29B

$723M $928M

$1.27M $1.10M

$1.20M $1.00M

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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 November 21, 2013. The data spans from January 1, 2010 through September 30, 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

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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: December 10, 2013

Digital HealthInsights Report forthe 50+ Market

A REPORT PREPARED FOR

Digital Health Insights Report for the 50+ Market · Early-stage deal count in 50+ market grew more...

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Transcript of Digital Health Insights Report for the 50+ Market · Early-stage deal count in 50+ market grew more...