Health Technology Sector Starts Maturing

As we previously noted, health technology funding is experiencing robust growth. We’ve now gone one level deeper in our analysis on our Health Technology Report and Research Platform and determined that the health technology sector is starting to mature.

This conclusion comes from two key observations:

  • Funding amount percentages showed a slight shift to later stages
  • Funding count percentages showed a clear shift to later stages

We’ll explain these key observations with some graphics and discussions below.

To help set the stage, the graphic below highlights health technology funding amounts over time. As you can see, the sector’s overall funding demonstrated consistent growth.

Health Technology Funding by Quarter
Health Technology Funding by Quarter

Health Technology Funding Amount Percentages Shifting Slightly to Later Stages

Let’s examine the health technology funding amounts by round as a percentage of the total funding amount by year.

Health Technology Funding Amount Percentages
Health Technology Funding Amount Percentages

The above graph indicates that there has been a slight shift to later-stage funding. In 2012, Seed and Series A funding amounts accounted for around 25% of total funding. By 2017, that total had dropped to under 20%. Consequently, the funding amounts from Series B onward grew from around 75% of total funding to over 80%.

Would the funding count percentages confirm this trend? Let’s examine in the the next section to find out.

Health Technology Funding Count Percentages Clearly Shifting to Later-Stage Events

The below graph shows the health technology funding event counts by round as a percentage of total events.

Health Technology Funding Count Percentages
Health Technology Funding Count Percentages

This graph paints a clearer picture of the funding shift than the previous funding amount graph. In particular, Seed funding count percentage decreased by more than half its size from 53% to 23%. The funding count percentages in all other rounds increased by various magnitudes from 2012 to 2017.

Conclusion: Health Technology Sector Matures As Funding Shifts to Later Stages

In summary, we have seen health technology funding amounts and funding event counts shift from the early-stage rounds to mid and late-stage rounds. These observations led us to conclude that the health technology sector is starting to mature.

To learn more about our complete health technology report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Health Technology Startup Highlights  – Q1 2018

Here is our Q1 2018 summary report on the health technology startup sector. The following report includes an overview, recent activity, and a category deep dive.

To learn more about our complete health technology report and research platform, visit us at www.venturescanner.com or contact info@venturescanner.com.

Health Technology Sector Overview – Q1 2018

The Health Technology sector contains companies focused on the digitization of healthcare across the value chain from the providers, to the payers, to the patients and consumers. They often optimize existing medical practices, provide health information to individuals, or create new frontiers in medicine.

In this post we examine the different components of Health Technology and how they make up this startup ecosystem. On our Health Technology research platform, we have classified the companies into 22 categories. This blog post will illustrate what these categories are and which categories have the most companies. We will also look at how these categories compare with one another in terms of their funding and maturity.

Digital Medical Devices Is the Largest Health Technology Category

Let’s start off by looking at the Sector Map for the Health Technology sector. As of March 2018, we have classified 2139 Health Technology startups into 22 categories that have raised $64 billion. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.

Health Technology Sector Map
Health Technology Sector Map

We see that Digital Medical Devices is the largest category with 288 companies. This category contains companies that build IT-enabled medical and diagnostic devices for doctors. These devices include surgical tools, monitoring equipment, and detection equipment. Some example companies are Signostics, MediBeacon, Stimwave, and AliveCor.

We have seen what the different categories making up this sector are and the number of companies in each. What about their funding and maturity in relation to one another? Let’s look at our Innovation Quadrant to find out.

Healthcare Robotics Is the Heavyweight Category in Health Technology

Our Innovation Quadrant divides the Health Technology categories into four different quadrants.

Health Technology Innovation Quadrant
Health Technology Innovation Quadrant

We see that the Pioneers quadrant has the most Health Technology categories with 15. The Pioneer categories are in the earlier stages of funding and maturity. The Established quadrant has three categories have reached maturity with less financing. These three categories are EHR/EMR, Clinical Backend, and Population Health Management.

The Disruptors quadrant also has three categories: Genomics, Health Payments, and IoT Fitness. These three categories have acquired significant financings at a young age. The Heavyweights quadrant contains the Healthcare Robotics category. This category has reached maturity with significant financing. On a relative basis, the companies in this Heavyweight category have reached more maturity and acquired more funding.

We’ve now seen the Health Technology categories and their relative stages of innovation. How do these categories stack up against one another? Let’s look at the Total Funding and Company Count Graph.

Digital Medical Device Startups Have the Most Funding and Companies

The graph below shows the total amount of venture funding and company count in each category.

Health Technology Total Funding and Company Count
Health Technology Total Funding and Company Count

As noted earlier, the Digital Medical Devices category leads Health Technology with 288 companies. The above graphic highlights that Digital Medical Devices also leads in funding with almost $13 billion. Some of the best-funded companies in this category are HeartFlow ($477M), Proteus Digital Health ($422M), and ViewRay ($418M).

Conclusion: The Digital Medical Devices Category Leads the Sector

From the above analysis, we can see that Digital Medical Devices dominates Health Technology in funding and company count. On the other hand, Healthcare Robotics stands out as the Heavyweight category in the sector, having reached maturity with significant average funding per company versus companies in other categories. It’ll be interesting to see how the Health Technology landscape will change and develop throughout the rest of 2018.

To learn more about our complete Health Technology report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Venture Scanner Sector Maps (Part 1 of 2)

Our sector maps are snapshots of emerging technology sectors. They show what the different categories in a sector are and how many startups are within each category. They also present a small sampling of the current startups that are innovating in each category.

We will share our most up-to-date sector maps in a two-part series. Below you will find sector maps for the Blockchain Technology, Energy Technology, Financial Technology, Health Technology, Insurance Technology, Video Technology, and 3D Printing sectors.

Blockchain Technology: 12 categories, 1007 companies, $6B in funding

Blockchain Technology Sector Map
Blockchain Technology Sector Map

Energy Technology: 12 categories, 790 companies, $63B in funding

Energy Technology Sector Map
Energy Technology Sector Map

Financial Technology: 16 categories, 2401 companies, $90B in funding

Financial Technology Sector Map
Financial Technology Sector Map

Health Technology: 22 categories, 2139 companies, $64B in funding

Health Technology Sector Map
Health Technology Sector Map

Insurance Technology: 14 categories, 1503 companies, $22B in funding

Insurance Technology Sector Map
Insurance Technology Sector Map

Video Technology: 11 categories, 828 companies, $35B in funding

Video Technology Sector Map
Video Technology Sector Map

3D Printing: 9 categories, 383 companies, $2B in funding

3D Printing Sector Map
3D Printing Sector Map

Stay tuned as we will release the remaining 8 updated sector maps for Artificial Intelligence, Internet of Things, Marketing Technology, Real Estate Technology, Retail Technology, Security Technology, Transportation Technology, and Virtual Reality.

To learn more about our complete report and research platform, visit us at www.venturescanner.com or contact us at info@venturescanner.com.

Health Technology Funding Trends – Q3 2017

The following graphs highlight recent trends in Health Technology startup funding activity. The graphics include data through August 2017.

Health Technology Funding by Year
Health Technology Funding by Year

The above graph summarizes the total funding raised by Health Technology startups for each year. 2015 has the most funding to date at around $8.9B.

Health Technology Funding by Vintage Year
Health Technology Funding by Vintage Year

The above graph summarizes the total amount of funding raised by Health Technology companies founded in a certain year. Companies founded in 2013 have raised the most funding at around $5.2B.

We are currently tracking 2053 Health Technology companies in 22 categories across 57 countries, with a total of $52.9 Billion in funding. Click here to learn more about the full Health Technology market report.

Health Technology Funding by Round – Q3 2017

The following two graphs summarize the rounds of funding going into the Health Technology space. Please note these graphics are made using data through August 2017.

Health Technology Funding Amount by Round
Health Technology Funding Amount by Round

The graph above shows the total amount of VC funding broken out by round. From 2006 to 2016, we saw a general increase in the overall sector funding, with the total amount peaking in 2015 and declining slightly thereafter. Earlier stage rounds (Series A, B, and C) make up a larger share of the total amount.

Health Technology Funding Count by Round
Health Technology Funding Count by Round

The graph above shows the total count of funding events broken out by round. From 2006 to 2016 we’ve seen an upward trend that peaked in 2014 and declined slightly thereafter. Earlier stage funding such as Seed, Series A, and Series B events make up the majority of funding event counts.

We are currently tracking 2040 Health Technology companies in 22 categories across 57 countries, with a total of $52.3 Billion in funding. Click here to learn more about the full Health Technology market report.

Health Technology Activity by Selected Investors – Q3 2017

The following graph summarizes investor activity in the Health Technology space. Please note these graphics are made using data through August 2017.

Health Technology Activity by Selected Investors
Health Technology Activity by Selected Investors

The above analysis summarizes the total number of investment rounds Health Technology investors participated in, and the number of unique companies funded by selected investors. Major investors into the space include NEA, GE Ventures, Khosla Ventures, Sequoia Capital, and Y Combinator.

We are currently tracking 2028 Health Technology companies in 22 categories across 57 countries, with a total of $52.2 Billion in funding. Click here to learn more about the full Health Technology market report.