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.

Where in the world are Health Technology startups? Q3 2017

The analyses below summarize where Health Technology innovations are occurring. The graphic includes data through August 2017.

Health Tech Q3 2017 Company Count by Country

The above map shows the number of Health Tech companies located in different countries. The United States ranks as the top country with around 1400 companies.

Health Tech Q3 2017 VC Funding by Country

The above map shows the amount of total Health Tech startup venture capital funding in different countries. The United States has the most VC funding at around $36B.

We are currently tracking 1,988 Health Tech companies in 22 categories across 57 countries, with a total of $50B in funding. Click here to learn more about the full Health Technology market report.

Health Technology Startup Market Trends and Insights  – Q3 2017

Here is our Q3 2017 summary report on the Health Technology startup sector. The following report includes a startup landscape overview, graphical trends with insights, and recent funding and exit events.

We are currently tracking 1,979 Security Technology companies in 22 categories across 57 countries, with a total of $48 Billion in funding. Click here to learn more about the full Health Technology market report.

Health Technology Market Overview and Innovation Quadrant – Q3 2017

The following post highlights how Venture Scanner categorizes the Health Technology startup landscape, and presents our Innovation Quadrant showing how those categories compare to one another. The data for this post is through August 2017.

Health Tech Logo Map Q3 2017

The above sector map organizes the sector into 22 categories and shows a sampling of companies in each category.

Health Tech Innovation Quadrant Q3 2017

Our Innovation Quadrant provides a snapshot of the average funding and average age for the different Health Tech categories and how they compare with one another.

  • Heavyweights: These categories are comprised of companies that have reached maturity with significant financing.
  • Established: These categories are comprised of companies that have reached maturity with less financing.
  • Disruptors: These categories are comprised of companies that are less mature with significant financing.
  • Pioneers: These categories are comprised of companies that are less mature with earlier stages of financing.

The definitions of the Health Tech categories are as follows

Clinical Administration and Backend: Companies that help foster management of healthcare-related administrative tasks. Examples include scheduling, patient transfers, billing, and compliance.

Digital Medical Devices & Diagnostics: Companies that manufacture a new generation of IT-enabled medical devices and diagnostic tools for use by doctors and other clinical staff. Examples include tools for use in surgery, monitoring equipment, and detection equipment.

Doctor and Healthcare Service Search: Services that help patients find the right healthcare solutions. Examples include services to search for doctors, healthcare plans, and specialized healthcare.

Doctor Network and Resources: Social services that allow doctors to connect with each other to gain insights and discuss their experiences and expertise. Examples include platforms that allow collaboration across hospitals and social networks that identify and share best practices.

Electronic Health/Medical Records: Services that create and manage EHR/EMR (Electronic Health/Medical Records) to improve efficiency and effectiveness of medical practices. Examples include platforms that provide electronic medical charts, schedules, prescription tracking, and referral letters.

Gamification of Health: Application of game elements to promote behavior-changing health and wellness. Examples include gamification solutions for healthy eating and fitness.

Genomics and Personalized Medicine: Companies that utilize human genome data for analytics and disease prevention. Examples include disease-specific genetic testing, more cost-efficient analytic solutions for healthcare providers, and consumer personalized reports.

Healthcare Marketing and Campaign Management: Services for hospitals, insurance agencies, and other healthcare services to identify and target potential customers. Examples include health care specific CRM platforms.

Healthcare Mobile Communications/Messaging: Mobile communications services dedicated for hospital use by doctors, nurses, and other medical professionals. Examples include secure messaging for doctors, care transition notifications, and shareable notes amongst professionals.

Healthcare Robotics: Companies that create robotics solutions for healthcare. Examples include companies that create robotic prosthetics and robotics solutions for remote patient treatment.

Health Insurance and Payments: Health insurance exchanges, benefits, and patient payment management platforms that focus on providing more efficient workflow and greater transparency. Examples include health insurance marketplaces and platforms to manage and automate health benefits.

IoT Fitness: Companies that create connected devices that track fitness and exercise metrics. Examples include healthy eating trackers, exercise tracking wristbands, and smartphone-controlled shoes.

IoT Healthcare: Companies that create connected devices that track health metrics or help improve health well-being. Examples include breathing mobile games, sleep trackers, and pain relief wearables.

Medical Big Data: Big data and analytics for medical applications. Examples include data management, solutions to normalize and link data across different systems, and predictive analytics.

Mobile Fitness/Health Apps: Mobile apps that focus on health and general wellbeing. Examples include apps that keep track of fitness activities, provide structured fitness routines, and provide mindfulness exercises.

Nutrition Innovations: Companies that provide nutrition information, healthy lifestyle plans, and healthy food delivery.

Online Health Communities: Social services among patient groups and medical professionals. Examples include online communities that connect similarly situated patients and platforms where doctors provide generalized medical information.

Online Health Destination Sites: Websites providing health-related information and resources. Examples include symptom checklists, drug information, and resources that discuss more specific issues.

Patient Engagement and Education: Services and platforms that better inform patients about modern medical practices and treatments. Examples include in-hospital multimedia systems and patient relationship management services.

Population Health Management: Services that help manage and analyze patient data across groups of people to create actionable insights for healthcare providers. Examples include population data management, coordinated care across populations, and streamlined reporting on individuals.

Remote Monitoring and Family Care Management: Services that allow families and medical professionals to monitor and manage those in care. Examples include services that provide caregivers to senior citizens as well as alert systems for in-home care.

teleHealth: Services that allow remote treatment and/or consultation between doctors and patients. Examples include solutions that allow patients to video conference their healthcare professionals and/or text/SMS/email for treatment.

We are currently tracking 1,978 Health Tech companies in 22 categories across 57 countries, with a total of $48 Billion in funding. Click here to learn more about the full Health Technology market report.

Health Technology Funding Trends – Q3 2017

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

Health Tech Funding By Year Q3 2017

The above graph summarizes the total funding raised by Health Technology startups for each year. 2015 has the most funding to date at around $8.5B.

Health Tech Vintage Year Funding Q3 2017

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 $4.5B.

We are currently tracking 1,966 Health Technology companies in 22 categories across 57 countries, with a total of $47 Billion in funding. Click here to learn more about the full Health Technology market report.