2019 Q3 StartUp Health Insights Summary
Core Content
The 2019 Q3 StartUp Health Insights report highlights the progress and trends in health innovation funding, focusing on the health moonshots that are driving the transformation of the global healthcare landscape. The report outlines the funding dynamics, investor activity, and innovation hubs across the U.S. and non-U.S. regions.
Main Points
- Total Funding: As of Q3 2019, health innovation companies raised $10.4B, indicating a strong year with the potential to become the second most-funded year in history.
- Patient Empowerment: This quarter, $420M was invested in health innovation companies with a focus on patient empowerment, showing that the patient remains a central focus in the health revolution.
- Key Markets:
- Population Health: Experiencing a 200% increase in funding, with $720M raised in Q3 and $1.2B for the year.
- Women's Health & Access to Care: These moonshots saw significant growth, with $4.5B YTD for Access to Care and $295M YTD for Women's Health, along with an increase in deal volume.
- Addiction: Showed a 223% funding increase, and Cancer had an 113% increase in deal count.
- Women's Health: Continued to lead in YoY funding with a 66% increase and 65% more deals than the previous year.
Key Markets Overview
| Moonshot |
Funding (YTD) |
Deal Count (YTD) |
Deal Stage Distribution |
| Access to Care |
$4.5B |
259 |
65% early-stage, 30% mid-stage |
| Women's Health |
$295M |
135 |
71% early-stage |
| Cancer |
$832M |
34 |
65% early-stage |
| Addiction |
$295M |
30 |
100% early-stage |
| Cost to Zero |
$281M |
194 |
59% early-stage |
| Cure Disease |
$1.2B |
135 |
25% early-stage, 30% mid-stage |
| End Cancer |
$832M |
34 |
65% early-stage |
| Children's Health |
$1.2B |
56 |
80% early-stage |
| Nutrition & Fitness |
$295M |
135 |
71% early-stage |
| Brain Health |
$295M |
135 |
71% early-stage |
| Mental Health & Happiness |
$295M |
135 |
71% early-stage |
| Longevity |
$295M |
135 |
71% early-stage |
Investor Activity
- Total Investors: 1,061 as of Q3 2019, which is 87% of the total 2018 investor count.
- Most Active Investors:
- Khosla Ventures
- F-Prime Capital Partners
- Tencent
- Maverick Ventures
- Pi Ventures
- Top Investors:
- StartUp Health led with 13 deals YTD.
- Khosla Ventures and F-Prime Capital Partners each had 10 deals YTD.
- Tencent and Maverick Ventures each had 6 deals YTD.
Innovation Hubs
U.S. Metro Areas
| Rank |
City/Region |
Funds Raised |
2019 YTD Deals |
2018 Deals |
| 1 |
San Francisco Bay Area |
$2.7B |
97 |
139 |
| 2 |
New York City |
$1.2B |
56 |
97 |
| 3 |
Boston |
$734.3M |
34 |
44 |
| 4 |
Chicago |
$354.1M |
16 |
13 |
| 5 |
Salt Lake City |
$282.6M |
6 |
3 |
| 6 |
Seattle |
$145.5M |
15 |
14 |
| 7 |
Denver |
$118.8M |
12 |
7 |
| 8 |
Los Angeles |
$81.0M |
18 |
29 |
| 9 |
Columbus |
$75.2M |
3 |
6 |
| 10 |
Boulder |
$69.0M |
3 |
-- |
Non-U.S. Metro Areas
| Rank |
City/Region |
Funds Raised |
2019 YTD Deals |
2018 Deals |
| 1 |
Beijing, China |
$725.4M |
10 |
20 |
| 2 |
Paris, France |
$394.0M |
8 |
7 |
| 3 |
Tel Aviv, Israel |
$181.9M |
12 |
10 |
| 4 |
Bangalore, India |
$178.1M |
7 |
15 |
| 5 |
London, U.K. |
$129.9M |
13 |
20 |
| 6 |
Guangzhou, China |
$103.0M |
2 |
3 |
| 7 |
Hangzhou, China |
$100.0M |
2 |
2 |
| 8 |
Warsaw, Poland |
$93.5M |
2 |
-- |
| 9 |
National Capital Region, India |
$84.9M |
6 |
13 |
| 10 |
Zhejiang, China |
$80.0M |
1 |
-- |
Top Deals
U.S. Top Deals
| Rank |
Company |
Round Size |
Function |
| 1 |
Capsule |
$200M |
Patient Empowerment |
| 2 |
Fremenome |
$160M |
Research |
| 3 |
Recursion Pharma |
$121M |
Research |
| 4 |
VillageMD |
$100M |
Population Health |
| 5 |
HiFiBiO Therapeutics |
$67M |
Patient Empowerment |
| 6 |
One Drop InforMed Data Systems |
$40M |
Patient Empowerment |
| 7 |
Notable Labs |
$40M |
Clinical Workflow |
| 8 |
Insilico Medicine |
$37M |
Research |
| 9 |
Exo Imaging |
$35M |
Personalized Health |
| 10 |
Ginger.io |
$35M |
Wellness |
Non-U.S. Top Deals
| Rank |
Company |
Round Size |
Function |
| 1 |
Babylon Health |
$550M |
Population Health |
| 2 |
AllinMD |
$100M |
Admin Workflow |
| 3 |
Healthy.io |
$60M |
Biometric Data Acquisition |
| 4 |
Intorem S.A. |
$43M |
Research |
| 5 |
AlayaCare |
$39M |
Clinical Workflow |
| 6 |
Synyi |
$36M |
Clinical Workflow |
| 7 |
AMBOSS |
$33M |
Education + Content |
| 8 |
Huimei Healthcare |
$30M |
Admin Workflow |
| 9 |
Keranova |
$26.5M |
Clinical Workflow |
| 10 |
MDClone |
$26M |
Population Health |
Quick Stats
| Category |
2019 Q3 |
| Total Deals |
259 |
| Median Deal Size |
$6.8M |
| Total Investors |
504 |
| Most Active Investors |
Khosla Ventures, F-Prime Capital Partners, Tencent, Maverick Ventures, Pi Ventures |
Conclusion
The report concludes that 2019 is likely to be a strong year for health innovation, with the potential to surpass 2018's record-breaking funding. This is attributed to the trend of quarterly megadeals, a break in the IPO drought, and the typical Q4 funding uptick. The report emphasizes the importance of radical collaboration and strategic investment in advancing health moonshots.
