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Impressive First Quarter of 2017 for Asia HealthTech Funding

Our HealthTech funding summary for Q1 2017, based on funding analysis from Startup Health, Mercom Capital, Rock Health and Galen Growth Asia, estimates that total venture funding of HealthTech companies in Q1 2017 exceeded $1.6B:

  • 165 deals reported in Q1 worth $1.6+B with an average deal size of $10.75M vs 159 deals worth $800+M in Q4 2016 with an average deal size of $5.6M
  • 19 countries worldwide saw funding deals this quarter with the US receiving the biggest proportion of VC funding
  • 34 deals reported in Asia in Q1, worth $500+M with an average deal size of $15.4M
  • We have not included in our summary Verily’s $800 million venture round by Singapore’s Temasek Holdings and the $914M Series B biotech/diagnostics GRAIL deal.

US Funding Status

According to Rock Health, which only reports on HealthTech funding in the US, Q1 2017 counted 71 deals totalling $1B. Many observers have expressed surprise that the investment pace has maintained itself in view of the political and policy uncertainty. Five deals over $50M were announced in Q1:

  1. Alignment Healthcare – $115M
  2. PatientsLikeMe – $100M
  3. Nuna – $90M
  4. Evariant – $63.5M
  5. Livongo – $52.M

So far the US is not seeing a slowdown in HealthTech funding due to regulatory uncertainty. To date, 2017 HealthTech funding is shaping up to be on track with previous years (49% above Q1 2015 and 23% below Q1 2016). Looking into Q2, founders in the US are remaining cautiously optimistic.

The top 5 HealthTech categories by total funding, accounted for almost 50 % of all funding in Q1 2017 are as follows:

  1. Analytics/Big Data
  2. Care Coordination
  3. Wearables & Biosensors
  4. Telemedicine
  5. Hospital Administration


Asia Funding Status

According to Galen Growth Asia: The Asia HealthTech Connector, Q1 2017 saw 36 HealthTech deals across Asia exceeding $500M (with 9 undisclosed rounds) and an average deal size of $15.4M, with Series A and Series B rounds, accounting for more than 60 % of the total number of deals in Asia.

* “Others” include venture rounds and growth equity


With the largest HealthTech funding deal this quarter, according to Mercom Capital, Hao Daifu’s pre-IPO round raised $200M marking the continued gain in momentum of HealthTech in Asia as demonstrated by other noteworthy VC funding deals – see table below:


 In Asia, 4 HealthTech categories, accounted for 50 % of all funding in Q1 2017:

  1. Health Services Search
  2. Patient Engagement
  3. Telehealth
  4. Medical Big Data



Mercom reported 49 M&A transaction in Q1 2017, up by 15% compared to Q4 2016 with most activities around Practice Management Solutions and Apps and Data Analytics. The most notable transactions were the CoverMyMeds acquisition by McKesson for $1.1 billion in cash, and the Jiff acquisition by Castlight Health for $135M.

The most significant Asia HealthTech transaction happened in China. Tencent-backed unicorn Icarbon X has invested nearly $400M in seven HealthTech companies to form a Digital Life Alliance in January 2017 to give people a deeper understanding of the medical, behavioural and environmental factors that can accelerate disease or optimize health. The partnership includes five US-based companies, including online medical big data company PatientsLikeMe.


Looking Forwards in 2017

We expect HealthTech funding to continue to demonstrate strong growth across the globe, despite global, political and policy uncertainties around the world. We are also expecting greater numbers of exits and IPOs in 2017, particularly in the US and in China.

Authored by: Dario Heymann

Edited by: Julien de Salaberry

Copyright © 2017 Galen Growth Asia

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