The Top 12 Venture Capital Firms Funding the 50+ Market

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1 The Top 12 Venture Capital Firms Funding the 50+ Market A REPORT SPONSORED BY Published: April 30, 2014

2 Background 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 2

3 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 $3B $2B $1B $1B 0 $1.05B $1.51B $2.22B $2.79B $0B Total Deal Count Total Funding 3

4 San Francisco Bay Area and the Northeast lead digital health funding activity with more than 41% of total funding from $109M $888M $1.6B $128M $113M $143M $453M $440M $222M $159M $177M 4

5 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 Number of Digital Health Startups* Total Digital Health Funding* $2.0B $1.8 $ $1.5B $ $1.0B $ $0.5B $0.5 $0.5 $0.3 $ $0.0B Devices and Wearables Software Only Devices and Wearables Software Only *Due to market overlap, some values are subject to double counting 5

6 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 Aging with Vitality Vtial Vital Sign Monintoring Monitoring Emergency Detection and Response Medication Management Traditional 50+ Market 50+ referred only to the aging market Navigating The Healthcare System Behavioral and Emotional Health New Focus of the 50+ Market Physical Fitness Social Engagement Diet and Nutrition 6

7 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 400 $2B $1B $1B $0B 0 $0.56B $0.77B $0.93B $1.48B $0B Total Deal Count Total Funding 7

8 The 50+ market continues to grow at the pace of the digital health and wellness market Total Funding $0.56B $1.05B $0.77B $1.51B $0.93B $2.22B $1.48B $2.79B Digital Health & Wellness Market 50+ Market 50+ health investment as percent of total digital health & wellness 70% 55% 40% 59% 52% 53% 51% 63% 42% 59% 53% Deal Count Funding 8

9 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 $2.5B Total Funding from $287M $397M $405M $501M $1.05B $1.27B $1.95B $12M Medical Management Emergency Detection and Response Diet and Nutrition Behavioral and Emotional Health Social Engagement Physical Fitness Aging With Vitality Vital Sign Monitoring 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 Published: April 30, 2014

10 In the 50+ market, VC firms are mostly interested in vital sign monitoring, care navigation and social engagement Number of VCs Investing in Market Medical Management Diet and Nutrition Emergency Detection and Response Behavioral and Emotional Health Aging With Vitality Physical Fitness Vital Sign Monitoring Care Navigation Social Engagement Interest in these markets is primarily attributed large market opportunities and clearlydefined business models 10

11 Top 12 Venture Capital Firms Funding the 50+ Market 11

12 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

13 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 Emergency Detection and Response 13

14 Most VCs investing in the 50+ market are funding early-stage innovation Seed A B C D E Funding by Round in the 50+ Market

15 50% of all deals from in the 50+ market were Seed or Series A rounds $6M Series A $5.7M Series A $4.25M Seed $1.55M Seed $3.5M Series A $2M Seed $2.5M Series A $2.25M Seed $2M Seed $600k Seed 15

16 Key Takeaways 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

17 Methodologies The 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, 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 ! 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 17

18 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

19 The Top 12 Venture Capital Firms Funding the 50+ Market