StartUp Health released the Global Digital Healthcare Investment and Financing Report for the third quarter of 2018 (data as of September 30, 2018). The report pointed out that the digital medical market reached a new high in 2018, with a total investment and financing transaction amounting to $11.1 billion. Investment and financing transactions in the third quarter reached $4.5 billion, nearly $2 billion higher than the third quarter of 2017.
By analyzing open seed investment, venture capital and private equity investment, the report reveals six major trends in investment and financing in the global digital healthcare sector – investment and financing transactions, transaction volume continues to rise, and China dominates the international market. The report also lists the TOP list of digital medical investment and financing, and analyzes different regions and different segments.
The arterial network compiled this for the first time. Among them, we can see a lot of highlights:
Of the top 10 transactions outside the US in 1.2018, 7 occurred in China;
2. In the third quarter, investment and financing transactions reached US$4.5 billion, a record high;
3. New York is still the most active region for investment and financing in the United States, and London is far ahead in Europe.
Q3 summary in 2018: The scale of transactions continues to grow and the market tends to mature
In 2018, the digital medical market reached a new high, with investment and financing transactions totaling $11.1 billion. In the third quarter, investment and financing transactions reached US$4.5 billion, which was nearly US$2 billion higher than the third quarter of 2017, creating the highest Q3 investment and financing in history.
The number of transactions in the middle and late period set a record, which promoted fund growth and market maturity. The number of international investments has soared. Five of the top 10 international transactions have occurred in China, and European cities have provided a large number of early round financing. As the development rate of investment and financing exceeds the overall growth rate in 2017, the digital medical market is still one of the fastest growing areas in the medical industry .
1. Third quarter investment and financing record
In the third quarter of 2018, the number of digital health investment and financing transactions was $4.5 billion, marking the cumulative value of the digital medical market in 2018 exceeding $10 billion, reaching $11.1 billion. Even without Peloton's $550 million heavyweight investment in health, the quarter was the highest quarter for investment and financing transactions since StartUp Health began tracking investments in 2010.
2. Digital medical market is expected to hit new highs
In the third quarter of 2018, the scale of investment and financing was nearly $2 billion higher than the third quarter of 2017, with 70 more transactions. The investment in the fourth quarter is generally active, and it is expected that the amount of investment and financing in the digital medical market will once again set a record this year.
3. Beijing dominates the international market
In the top ten international transactions in the third quarter, Beijing companies accounted for five of them, and in 2018, a total of six transactions, the total investment and financing transactions reached 863 million US dollars. As an early round of financing centers, the scale of transactions in London and Stockholm continues to grow.
4. The market is gradually maturing
The market continues to mature, with an increase in the number of rounds of financing in the middle and late stages, indicating an increase in follow-on investment and the continued development of start-ups. As of the third quarter, B-F round financing accounted for 43% of transactions in 2018, creating the highest proportion since 2010.
5. The number of investors has steadily increased
In 2017, the number of investors in the digital medical market set a record, totaling 1,247 investors. In 2018, the number of investors in this market is expected to be the same as in 2017. The total investment of most of the top investors exceeds the total investment in 2017.
6. The scale of the transaction continues to increase
The average transaction size has continued to expand this year and has grown exponentially in the third quarter. So far, six of the top 10 deals have occurred in the third quarter, with the smallest investment in the top ten list reaching $149 million.
Global Investment and Financing Data at a Glance: “Summer Plunge†Becomes Past, Middle and Late Round Financing Increases
1. Annual investment and financing transaction volume: expected to hit a new high in 2018
The number of digital medical investment and financing transactions in 2018 is expected to exceed nearly US$1 billion in 2017. The third quarter is also the quarter with the highest investment and financing transactions since StartUp Health began tracking investment in 2010.
Global investment and financing transactions and transaction volume in 2010-2018
(Source: Startup Health)
2. Monthly investment and financing transaction amount: “Summer plunging†becomes a past tense
July is the highest month for digital medical investment and financing in 2018, reaching $1.88 billion, which is $10 million higher than the previous month with the highest transaction volume, exceeding the peak in 2017. As the size of financing in July and August has almost quadrupled, the “summer slump†situation has become a thing of the past.
Monthly investment and financing volume trend in 2014-2018
(Source: Startup Health)
3. Different rounds of financing: the proportion of round financing in the middle and late stages increased
In the third quarter, there were good signs of industry maturity. In all transactions, the middle and late round of financing accounted for the highest proportion, continuing the year-on-year trend since 2010. With the increase in the proportion of transactions in the middle and late period, the digital medical market transaction volume is expected to exceed 2017.
2010-2018 financing round structure
(Source: Startup Health)
Startup Health Digital Medical Investment and Financing TOP List
1.2018 Investment and Financing TOP10 Global Transaction
In the field of digital medicine, investment and financing diversification has gradually become a trend. In the 2018 TOP10 global transaction, the third quarter accounted for seven of them. Oscar is on the list with a total financing of $540 million, but its financing in the digital healthcare sector is still $10 million less than Peloton's $550 million.
(Data is organized by the Arterial Network according to the Startup Health report)
2.2018 investment and financing TOP10 non-US regional transactions
Of the top ten transactions outside the United States in 2018, six were from the third quarter, five in Beijing, and two in Zhejiang. Companies based in Beijing, such as LinkDoc and Medlinker, completed nearly $150 million in transactions this quarter.
(Data is organized by the Arterial Network according to the Startup Health report)
3.2018 investment and financing TOP10 global region
In the third quarter, Beijing completed seven transactions, with investment and financing reaching US$721 million. Despite Beijing's rising trend, metropolitan areas such as London and Stockholm have generated more early rounds of financing, keeping them at the forefront of the list.
TOP10 global area transaction volume and transaction volume
(Source: Startup Health)
(Data is organized by the Arterial Network according to the Startup Health report)
4.2018 investment and financing TOP10 US region
In the third quarter, New York City completed 25 transactions with investment and financing of nearly $1.6 billion, surpassing other regions including the San Francisco Bay Area ($865 million, 29 transactions). More than 50% of the transaction volume and transaction volume flow to the "Big Three": San Francisco Bay Area, Boston and New York City.
TOP10 US regional transaction volume and transaction volume
(Source: Startup Health)
(Data is organized by the Arterial Network according to the Startup Health report)
5.2018 investment and financing TOP10 Europe
London and Paris were the cities with the highest total investment and financing in Europe in the third quarter of 2018, but the financing scale of smaller cities such as Ljubljana and Nijmegen also increased.
TOP10 European trading volume and trading volume
(Source: Startup Health)
(Data is organized by the Arterial Network according to the Startup Health report)
The most active investor in 6.2018
Kleiner Perkins and GV first appeared on the most active investor list this quarter, with only five investments in the third quarter. F-Prime's ranking jumped from sixth to second place. As of the third quarter of 2018, investors on the list have completed or exceeded the total transaction volume of last year.
(Data is organized by the Arterial Network according to the Startup Health report)
Number of investors in 7.2018
The number of investors in 2018 has exceeded 2010 to 2016, almost double the third quarter of 2017. This upward trend is expected to continue into the fourth quarter, and the number of investors in 2018 will exceed 2017.
(Source: Startup Health)
The most active field in 8.2018
“Patient Empowerment†continues to maintain its leading position in the digital health arena, with investment and financing transactions amounting to $2.1 billion and involving 149 transactions. The average transaction volume in the insurance sector was the highest, with a median transaction volume of $31.2 million.
(Unit: USD, data compiled by the Arterial Network according to the Startup Health report)
The most active application in 9.2018
(Unit: USD, data compiled by the Arterial Network according to the Startup Health report)
Typical Case
1. Telemedicine - Cloudbreak
The telemedicine platform Cloudbreak offers a wide range of professional services through a proprietary broadband network that solves clinical treatment problems for more than 800 hospitals in the United States each month.
2. Diagnosis / Screening - Oxitone
Oxitone introduced the first FDA-approved wrist pulse oximeter. The device provides hospital-level digital continuous care for high-risk patients who may develop complications through an artificial intelligence-driven early detection and early warning system.
10. Most active end user
(Unit: USD, data compiled by the Arterial Network according to the Startup Health report)
Typical Case
1. Employee - FitBliss
FitBliss helps CRM (marketing relationship management) data and consumer health device data to help sales-oriented organizations optimize performance to increase output, enhance personal well-being, and mitigate health risks.
2. Patient - Curatio
Curatio is a digital application that helps medications, using social therapies to improve patient self-management, while collecting data on drug adherence and effectiveness to help pharmaceutical companies improve efficiency.
11. Most active specialist
(Unit: USD, data compiled by the Arterial Network according to the Startup Health report)
Typical Case
1. Oncology - Savor Health
For healthcare companies, cancer patients and their carers, Savor Health offers a personalized platform for nutrition management and patient engagement. The platform uses artificial intelligence to effectively reduce medical costs, improve drug compliance, and improve treatment outcomes.
2. Administration - Sift MD
Sift MD's medical analytics platform can analyze patient data, increase bill payment rates, reduce claims denials, and provide recommendations. The platform helps revenue cycle managers and healthcare providers standardize billing data and use less human resources to drive more effective and cost-effective payment results.
12. Most active technology
(Unit: USD, data compiled by the Arterial Network according to the Startup Health report)
Typical Case
1. Analysis Tool - Biome
Biome provides machine-driven solutions for hospital clinical, quality improvement, finance, marketing and supply chain teams by integrating clinical and financial data from clients with clinically relevant benchmarks, risk stratification algorithms and performance assessment libraries.
2. Internet of Things - Veloce
Veloce's remote control system, SmartTab, provides an effective, targeted drug delivery service. Veloce is designed to improve drug delivery and monitoring and optimize patient care, helping pharmaceutical companies provide patients with the right drugs at the right time and place.
StartUp Health Top 10 “Healthy Moonrise Programâ€
Founded in 2011, StartUp Health is one of the world's most influential digital healthcare startup accelerators. The goal is to improve the health and well-being of human beings by participating in venture capital investments around the world in 25 years to complete the 10 “Healthy Moonrise Programsâ€.
With the support of many of the world's top corporate and individual investors, StartUp Health has the world's largest digital healthcare portfolio with more than 250 companies in 21 countries on 6 continents.
StartUp Health brings together a new generation of entrepreneurs, investors, industry leaders and government organizations to improve human health in all aspects. Here are the top 10 “Healthy Landing Programs†for StartUp Health.
The completion of each program can improve the health of at least 1 billion people.
1. Nursing channel expansion plan
Provide high quality medical care to everyone regardless of their income or where they are.
2. Zero cost care plan
Fundamentally reduce medical expenses.
3. Disease cure plan
Treat diseases with data, technology and customized drugs.
4. Cancer termination plan
cure cancer.
5. Women's health plan
Give priority to women's health, including preventive care and new research.
6. Child health plan
Regardless of the state of the economy, ensure that every child receives quality care.
7. Nutrition and fitness program
Provide a healthy environment and support an active lifestyle.
8. Brain health plan
Unravel the mysteries of the brain, improve mental health, and improve well-being.
9. Mental health and happiness program
Connect the mind, body and spirit and pursue happiness.
10. Life extension plan
Extend human life by 50 years.
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