the top 12 venture capital firms funding the 50+ …...the top 12 venture capital firms funding the...

The Top 12 Venture Capital Firms Funding the 50+ Market

A REPORT SPONSORED BY

Published: April 30, 2014 A StartUp Health Insights Report. Comprehensive funding data available at startuphealth.com/insights


New digital health apps and wearable devices for the young get the lion's share of media attention. But entrepreneurs and investors investing with the 50+ market in mind are focusing on a big — and growing — opportunity. !Baby Boomers make up 44% of the US population and more than 10,000 enter the 50+ demographic daily. Collectively, they spend $3.5 trillion a year. By 2018, breakthrough technologies, innovative services and disruptive business models will benefit more than 100 million people 50+ and represent $20 billion in revenue in the US alone. !In December, StartUp Health and AARP released the first-ever digital health insights funding report evaluating the 50+ market, highlighting the encouraging rise of health innovation among a growing population with increased medical needs. This report takes a closer look at the top venture capitalists in 50+ investing and the hottest areas of investment. Already, some of the country's top venture capitalists are putting much of their digital health dollars toward the 50+ market. And our data indicates that the trend may just be beginning. Take a look!

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

Background

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$0B

$1B

$1B

$2B

$3B

0

150

300

450

600

2010 2011 2012 2013

Total Deal Count Total Funding

$2.79B$2.22B$1.51B$1.05B

527

395

219

128128

219

395

527

Since 2010, digital health and wellness investment has grown from $1.05B to $2.79B in 2013

Deal count more than quadrupled from 128 to 527

3


$1.6B

$453M

$440M

$888M

$128M

$159M

$222M

$143M

$109M

$177M

San Francisco Bay Area and the Northeast lead digital health funding activity with more than 41% of total funding from 2010-2013

$113M

4


Though the number of software-only digital health companies more than quadrupled, funding in devices and wearables grew 102% from 2012 to 2013, accounting for 32% of all digital health investment

$0.0B

$0.5B

$1.0B

$1.5B

$2.0B

2010 2011 2012 2013

$1.9$1.8

$1.2

$0.5

$0.9

$0.4$0.3

$0.5

Devices and Wearables Software Only

125

250

375

500

2010 2011 2012 201339 48

104122

Devices and Wearables Software Only

Number of Digital Health Startups* Total Digital Health Funding*

5*Due to market overlap, some values are subject to double counting

405

291

171

89


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

Opportunities in the 50+ Market

New Focus of the 50+ 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

6

Vital Sign Monitoring


$0B

$0B

$1B

$1B

$2B

0

100

200

300

400

2010 2011 2012 2013

Total Deal Count Total Funding

$1.48B$0.93B$0.77B$0.56B

Funding in the 50+ market rose 59% from $0.93B in 2012 to $1.48B in 2013 and makes up 53% of the entire digital health market

7

67

130

249

311


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

50+ health investment as percent of total digital health & wellness

2010 2011 2012 2013

40%

55%

70%

2010 2011 2012 2013

53% 51%42%

53%52%

59% 63% 59%

Deal Count Funding

Tota

l Fun

ding

$0.56B

$1.05B

$0.77B

$1.51B

$0.93B

$2.22B

$1.48B

$2.79B

Digital Health & Wellness Market 50+ Market

8


From 2010 to 2013, the 50+ areas that received the greatest total amount of VC funding were aging with vitality, vital sign monitoring and care navigation

Substantial funding in these markets is attributed to an emphasis on preventative medicine, empowering the patient to own their care and the changing healthcare regulatory landscape

9

Tota

l Fun

ding

from

201

0-20

13

Medical Management

Diet and Nutrition

Emergency Detection and Response

Behavioral and Emotional Health Aging With

VitalityPhysical Fitness


Care Navigation

Social Engagement

$12M$287M $397M $405M $501M

$1.05B$1.27B

$1.95B

$2.5B


103100

75

56

38252220

3

In the 50+ market, VC firms are mostly interested in vital sign monitoring, care navigation and social engagement

Num

ber

of V

Cs

Inve

stin

g in

Mar

ket

2010

-201

3

10

Medical Management

Diet and Nutrition


Behavioral and Emotional Health

Aging With Vitality

Physical Fitness


Care Navigation

Social Engagement

Interest in these markets is primarily attributed large market opportunities and clearly-defined business models


Top 12 Venture Capital Firms Funding the 50+ Market

11


Many of the notable deals since 2010 were syndicated investments among the top VCs

$40M Series A

$24M Series B

$23M Series B

$18.6M Series C

$15.2M Series B

$9.3M & $15M Series C & D

$15M Series B

$10.8M & $9.3M Series C & E

12


Since 2010, deals in physical fitness and care navigation have comprised the majority of digital health VC interests

Physical Fitness

Aging with Vitality

Care Navigation

Diet and Nutrition

Vital Signs Monitoring

Behavioral and Emotional Health


13


Most VCs investing in the 50+ market are funding early-stage innovation

Fund

ing

by R

ound

in t

he 5

0+ M

arke

t

Seed A B C D E

+ + +

+ + + +

+ + +

+ + + + + +

+ + +

+ + + + +

+ + +

+ + +

+ + + +

+ + + + +

+ + +

+ + + +

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$2M Seed

$3.5M Series A

$2.5M Series A

$2.25M Seed

$2M Seed

$1.55M Seed

$600k Seed

$6M Series A

$4.25M Seed

$5.7M Series A

50% of all deals from 2010-2013 in the 50+ market were Seed or Series A rounds

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• Aging with vitality, vital sign monitoring and care navigation received the greatest amount of digital health VC funding from 2010 to 2013 !

• Physical fitness and care navigation have seen the most deal action (by volume) in digital health investing since 2010

!• Vital sign monitoring, care navigation and social engagement have the greatest number of

interested VC’s among the 50+ market opportunities !• Funding in the 50+ market makes up 53% of the entire digital health market and is growing !

• Seed or Series A deals comprised 50% of the 50+ deals from 2010-2013

Key Takeaways

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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 April 14, 2014. The data spans from January 1, 2010 through December 31, 2013. !Some of the deals presented in sub-sector analyses may have been subject to double counting because of overlapping markets. VCs included in the top list comprised those that invested in the most deals within the 50+ market from 2010-2013. !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 Examples of Needs Addressed

Social Engagement Staying connected socially Keeping mobilized Stimulating intellect

Medication Management Managing multiple medications Preventing in-home accidents Sharpening memory

Emergency Detection & Response Detecting falls Sending alerts when lost Preventing in-home accidents

Behavioral and Emotional Health Stress reduction Receiving divorce/grief support Managing life phase transitions

Physical Fitness Improving muscle strength Age-appropriate exercise Maintaining healthy weight

Diet & Nutrition Eating healthy and portion control Maintaining a healthy weight Reducing bad cholesterol

Navigating the Healthcare System Managing healthcare costs Evaluating quality of care Plan for end of life care

Aging with Vitality Aiding in memory and cognition Improving or aiding vision Improving or aiding hearing

Vital Sign Monitoring Keeping blood pressure in range Detecting skin problems Improving sleep quality

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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.

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The Top 12 Venture Capital Firms Funding the 50+ Market

the top 12 venture capital firms funding the 50+ …...the top 12 venture capital firms funding the...

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