Global HealthTech funding reached $5B in 2016!
Based on global funding analysis provided by Startup Health and Mercom (Rock Health is now only reporting US deals), we can estimate that venture funding of HealthTech companies in 2016 edged past the $5B mark, surpassing 2015.
- 622 deals in 2016 (vs 574 in 2015) with an average deal size $8.5M (similar to 2015)
According to Mercom, VC funding in HealthTech has risen to $18.5B across 2,672 deals since 2010!
Average funding size has continued to grow, despite a 50% drop in Series C average. Series A rounds were 84% larger than in 2015. Deal count numbers are up with an increase of 8% in $5M deals, 26% in $10M deals and 7% in $25M deals.
HealthTech funding started off strong in early 2016, with January setting a new record for funding. In the US, more investment funding poured into HealthTech companies in January 2016 than for all of 2011 combined. This included half of the largest six deals of the year (Flatiron Health, HealthLine, and Jawbone), which all announced their latest rounds in the first month of the year.
The top 5 HealthTech categories, according to Rock Health, accounted for more than 40% of all funding in 2016:
- Analytics & Big Data
- Wearables & Biosensors
- Digital Medical Devices
There were 35 countries with HealthTech VC funding events in 2016 with ~68% of the funding recorded in the United States with California based startups receiving the lion share followed by New York.
Asia HealthTech funding events grew significantly in size with Ping An Good Doctor, a China based medical service mobile app which provides free diagnosis, treatment and online appointment booking, and allows users to consult doctors, backed by Ping An Insurance (Group) recording the largest HealthTech round globally by closing a $500M Series A in May 2016. Other noteworthy Asia HealthTech deals in 2016 include:
China Top 5
|Startup||GGA HealthTech Category||Funding Size ($M)|
|Ping An Good Doctor||Navigating The Healthcare System||· 500.0|
|Navigating The Healthcare System||· 394.0|
|BabyTree||Navigating The Healthcare System||· 437.0|
|Chunyu Yisheng||Telehealth & Remote Monitoring||· 183.0|
|iCarbonX||Big Data & Analytics||· 155.0|
Rest of Asia Top 5
|Startup (Country)||GGA HealthTech Category||Funding Size ($M)|
|Sensors & Diagnostics||· 35.0|
|Navigating The Healthcare System||· 16.0|
|Navigating The Healthcare System||· 13.0|
|Patient Engagement||· 3.0|
*Get all information, including funding stage and principal investors, in our Galen Growth Asia HealthTech CEO Summit report (available very soon)
There were 22 accelerators and incubators which participated in 83 deals in 2016, up from 2015 where 14 accelerators and incubators participated in 55 deals.
A total of 1115 investors including unique firms, angels and investment divisions participated in venture funding rounds for HealthTech companies across the globe in 2016, up from 923 in 2015. Top five investors by number of deals include GE Ventures, khosla ventures, Startup Health, Andreessen Horowitz and BlueCross BlueShield.
2016 saw a total 205 M&A deals concluded which is slightly shy of 2015’s total. Noteworthy HealthTech deals included:
- IBM’s acquisition of Truven Analytics for $2.6B
- Wolters Kluwer Health acquisition of Emmi Solutions for $170M
- Teladoc’s acquisition of HealthiestYou for $125M
- FitBit’s acquisition of Pebble for $40M
2016 was a meagre year for IPOs with 105 companies across all industries going public in 2016, down from 275 in 2014. HealthTech IPOs were equally few in number with only three HealthTech companies IPO’ing in 2016 and raising >$250M in capital:
- Key IPOs include iRythm, Nant Health and Tabula Rasa Healthcare (see The Propell Group’s weekly Global Healthcare Key Deals for further information).
2017 started strong for Asia HealthTech with Practo announcing a Series D round at $55M demonstrating savvy investors’ appetite for consumer focused healthcare value propositions in Asia. This is unsurprising in view of the fast growing number of online consumers in the region. Similarly to Practo’s announcement, we expect to see a number of the noteworthy 2015 funding rounds announce further fund raising in 2017.
For further insights into the vibrant Asia HealthTech ecosystem, we recommend reading our forthcoming publication of the Galen Growth Asia HealthTech CEO Summit report (available very soon)
Source: Rock Health, CB Insights, Startup Health, Mercom Capital Group, Silicon Valley Bank, Galen Growth Asia
All reports reviewed can be found at Galen Growth Asia’s SlideShare page.
Authored by: Julien de Salaberry
Copyright © 2017 Galen Growth Asia