This blog post examines the different components of the health technology ecosystem. We will illustrate what the categories of innovation are and which categories have the most companies. We will also compare the categories 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. We have classified 2,334 health technology startups into 22 categories. They have raised $88B from 3,843 investors. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.
We see that Digital Medical Devices is the largest category with 324 companies. These companies build IT-enabled medical and diagnostic devices for doctors. These devices include detection equipment, monitoring equipment, and surgical tools. Some example companies include Signostics, MediBeacon, Stimwave, and AliveCor.
Let’s now look at our Innovation Quadrant to find out the funding and maturity of these categories in relation to one another.
The Pioneers Quadrant Has the Most Health Technology Categories
Our Innovation Quadrant divides the health technology categories into four different quadrants.
We see that the Pioneers quadrant has the most number of health technology categories at 13, accounting for 59% of all health technology categories. The EHR/EMR category has the highest average age, and the Genomics category has the highest average funding. On the other hand, the Fitness Apps and the Gamification categories are low on both average funding and age.
As we make our way through Q1 of 2019, let’s look back on 2018 and analyze how exit activity for health technology compares to previous years. The graphic below shows total annual health technology exit events over time.
As the graphic demonstrates, 2018 saw a drop in health technology exit activity compared to the previous year. The 67 exit events in 2018 represent a 9% decrease from the 74 exit events in 2017, which was the highest year on record for exit activity. However, health technology exits are still on a general upward trend, with a 5-year CAGR of 25% from 2013 to 2018. Some of the exit events in 2018 include AveXis’s acquisition by Novartis for $8.7B, Flatiron Health’s acquisition by Roche for $1.9B, and PillPack’s acquisition by Amazon for $1B.
The following graphs highlight recent trends in Health Technology startup funding activity. The graphics include data through August 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 $8.9B.
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.
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.
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.
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.