StartUp Health Insights: Digital Health Funding for the 50+ Market 2014 Q3 YTD

© 2014 StartUp Health, LLC

Published: 11/19/2014

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A StartUp Health Insights Report

Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC

Q3 2014 SUMMARY

2014 is setting records for digital health funding, including many deals relevant to the 50+ market. Our quarterly report gives an overview of the most active 50+ areas, investors and more. Here are six trends we’re watching:

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1 2014 Digital Health Funding Reaches Record Levels: Through Q3 2014, 347 companies have raised $5B. This level of growth demonstrates that 2014 is on track to nearly double the amount invested in 2013.

2 Funding for Startups in the 50+ Market Continues to Grow: Through Q3 2014, 186 deals relevant to the 50+ market have raised $2.2B. Of those, 21 have raised $269M for products and services specifically targeting the 50+.

3 The 50+ Opportunity Expands: 50+ consumers account for $3.1 trillion in consumer spending and $1.6 trillion in healthcare spending. Over the next 5 years, digital health spending by the 50+ could top $30 billion.*

4 Consumerism Grows: As a result of high-deductible plans, price transparency and new tech solutions, patients are more empowered. Consumers’ purchasing power is noticed by large companies like Facebook, Apple and Google.

5 ACA Spurs Innovation: Health reform continues to drive changes in the industry, encourages startup activity in the sector and pushes organizations to adopt new technology to improve quality of care for the 50+ market.

6 Global Innovation Accelerates: More than 5,000 startups around the world are developing new solutions in digital health, with broad opportunity to create technologies that are relevant to the 50+ market.

*From AARP’s Heath Innovation Frontiers Report, August 2014

Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC

DIGITAL HEALTH FUNDING SNAPSHOT (YTD)

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Fund

ing

($B

)

$1B

$3B

$4B

$5B

Dea

ls

150

300

450

600

2010 2011 2012 2013 YTD 2014

Deals Funding

$5.0B

$2.8B$2.2B

$1.7B

$1.1B

533

447

242

142142

242

447

533

Funding in the first three quarters of the year has skyrocketed past the total invested in 2013. Although deal volume is lower, investors are putting more money in fewer startups, indicating the market’s gradual maturation.

347

Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC

DEFINING THE 50+ MARKET IN DIGITAL HEALTH

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As the overall digital health industry continues to expand, startups serving 50+ consumers - either directly or through providers, payors and other healthcare stakeholders - are increasingly attracting investment. !This report spotlights two categories of startups: 50+ relevant companies and 50+ focused companies. Companies in both categories align with at least one of AARP’s 9 areas of opportunity:

The 50+ relevant category includes companies, both B2C and B2B2C, with products or services that could be used by 50+ consumers. This excludes practice management solutions, compliance software, lab support tools and other enterprise systems that do not have a consumer touchpoint, as well as companies specifically targeting other demographics like children and young families.

The 50+ focused category includes B2C companies that specifically target 50+ consumers and B2B2C companies that provide products and services to payors, providers and others that serve 50+ consumers.

Emergency Detection and Response

Physical Fitness

Diet and Nutrition

Behavioral and Emotional Health

Medical Management

Aging With Vitality

Social Engagement

Vital Sign Monitoring

Care Navigation

Download the Full Report at www.startuphealth.com/aarp

© 2014 StartUp Health, LLC

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