Investor and Entrepreneur Perspectives on Emerging Technologies

Transcription

1 Investor and Entrepreneur Perspectives on Emerging Technologies Feb 26, 2016

2 Investor and Entrepreneur Perspectives on Emerging Technologies - Panelists Moderator: Arda Ural, PhD, Managing Director, Life Sciences, Accenture David Schubert, Chief Operating Officer, Accelerator Corporation Sam Sia, PhD, Co-Founder, Harlem Biospace, Associate Professor of Biomedical Engineering, Columbia University Nina Tandon '12, PhD, CEO and Co-Founder, EpiBone Zach Weinberg, Co-Founder, President and COO, Flatiron Health

3 Emerging technologies are one of the leading factors to significantly accelerate the time from research to practice The time to translate research into practice has steadily been dropping for the last 2,500 years thanks to innovation and emerging technologies At this rate, should we expect it to drop to zero by 2025? Chart from: Jonathan A. Handler, MD, Adjunct Associate Professor, Northwestern University

4 While the life expectancy over the years increased due to medical innovation, US is an outlier in balancing outcomes with cost * OECD Health Statistics *Institute of Medicine of National Academies Report

5 Emerging technologies are creating new entrants, forcing incumbents into new collaborations as well as converging technology and services across the ecosystem Medical Devices Payers Providers Biopharma Convergence of healthcare, technology and services Consumer & Wellness Technology & Telecom Others??? Aerospace & Defense

6 Funding ($B) Total Digital Health Funding is increasing at unprecedented rates and reached $5.3B in 2015 Digital Health funding is rapidly increasing at almost 40% in the past two years and projected to eclipse our original projection of 6.5B a year earlier than anticipated. $8B $6B $4B $2B $1.4B 25% $2.1B $2.2B $2.8B 37% $4.1B $3.5B $5.3B $4.3B $6.5B $0B Actual Forecast Source: Accenture research from HC2020. Data as of January 1, 2016 including 3000 companies

7 Not surprisingly CA continues to lead the way with the amount of received funding with MA and NY as other bright spots Total Funding by Geography Legend 0% 0% to 0.5% 0.5% to 1% 1% to 3% 3% to 5% 5% to 7% 7% to 9% 9% to 11% 11% to 13% 13%+ Source: Accenture research from HC2020. Data as of January 1, 2016 including 3000 companies

8 Most deals are focused on smaller denominations with a few companies operating at scale are receiving a sizeable portion Majority of the $5.3B investment in 2015 is distributed towards deals <$20M 150 Funding Size Frequency NY based Startup Source: Accenture research from HC2020. Data as of January 1, 2016 including 3000 companies

9 Several start-ups got the benefit from IPOs to capitalize their companies and create exit opportunities for early investors $600M $732M $101M $196M $158M NY based Startup Source: Accenture research from HC2020. Data as of January 1, 2016 including 3000 companies

10 When grouped by area of investment, a few hot spots emerge including Personalized Medicine, Provider Efficiency and Wearables Personalized Medicine, Provider Efficiency, Wearable Devices, Improved Access, Virtual Care and Incentives and Social are gaining traction in the market and major themes in 2015 Personalized Medicine Tools and software will enable patient support of medicine customized to an individuals genetics will become more utilized for evidence based medicine Provider Efficiency Management and administration tools for providers and payers to improve operational inefficiencies in the system will continue to be a heavy focus area to eliminate waste Wearable Devices Wearables are maturing after their breakthrough year last year and their ability to detect specific biometrics is increasing which we forecast will soon clash with clinical grade devices $1.3B $0.9B $0.5B Improved Access Ability to access and purchase healthcare solutions will become more easily available as healthcare becomes more consumer focused Virtual Care Delivery of healthcare services through nonphysical means (e.g., telephone, digital imaging, video) will continue to increase, being driven by customers cross industry expectations and inefficiencies in current care delivery Incentives and Social Products and solutions aligned to incentive healthy behavior of consumers are gaining traction in the market, as some companies leverage to offer to their employees $0.4B $0.4B $0.4B Source: Accenture research from HC2020. Data as of January 1, 2016 including 3000 companies NY based Startup