State Of Healthcare Q1’20 Report:

Investment & Sector Trends To Watch

1
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Contents
10 Q1’20 Global Healthcare Investment 36 Q1'20 Healthcare Industry Highlights
Trends
AI Women’s Health
Telehealth Mental Health

20 Q1’20 Global Digital Health Medical Devices Regenerative Medicine

Investment Trends Digital Health In China

30 Q1’20 Spotlight: Covid-19 73 Appendix:

Most Active VC Investors Q1'20
Methodology

5
Summary of findings
COVID-19
Covid-19 had a material impact on China’s deal activity: Between Q4’19 and
Q1’20, China’s healthcare deals dropped by nearly 40% to 100, the lowest level
seen since Q2’17. The decline was particularly steep in the digital health space,
where deals and dollars both dropped by more than 50% since Q4’19.
Covid-19 prompted swift responses from government, industry, and academia:
Healthcare stakeholders have responded to the crisis by providing new and
expanded product offerings, adjusting regulatory policy, and forging
collaborative partnerships. Going forward, tech giants will likely play a larger
role in strategy and implementation of future public health responses.
Covid-19 put on a spotlight on telehealth: Amid the Covid-19 pandemic, both
telehealth deals and news mentions doubled from Q4’19. Several payers and
providers expanded access to virtual care, and telehealth companies from
around the globe reported significant upticks in visit volume.
GLOBAL HEALTHCARE INVESTMENT
Global healthcare investment: Healthcare startups closed 1,156 funding rounds
in Q1’20, the lowest level since Q4’18. Despite the slide, equity funding
continued to rise, surpassing $14.6B. March was the strongest month in the
quarter with $5.7B raised.
Note: This report focuses on equity rounds to private healthcare companies. All data is sourced from CB Insights.
Funding to North American companies reached an all-time high: North
American healthcare companies raised $10.3B in Q1’20, the highest quarterly
level on record and a 35% increase from Q4’19. This was driven by a record-high
number of mega-rounds (25).
Globally, there are 42 healthcare unicorns worth a combined $99.5B: The
cohort’s total valuation continued to grow with the addition of Insightec ($1.3B
valuation) and Alto Pharmacy ($1B).
GLOBAL DIGITAL HEALTH INVESTMENT
Digital health deals and dollars slid in Q1’20: Global digital health funding
came in at $4.5B for Q1’20, down 8% from Q4’19. Deals also declined quarter-
over-quarter, coming in at 408, down 4% from Q4’19. Declines in deal activity
were led by China.
In the US, New York regained the #2 spot for digital health deals: After falling
behind Massachusetts in Q4’19, New York state regained the #2 spot with 32
digital health deals in Q1’20. New York metro deals surpassed Silicon Valley
deals by 48% in the quarter, though at the state level California continues to
lead with 74 deals.
(Summary continued on the next page)
6
Summary of findings
HEALTHCARE INDUSTRY TRENDS Telehealth and diagnostics remained popular segments in the women’s health
space. After 3 consecutive quarterly declines, women’s health funding
Healthcare AI deals and dollars rose but remained below Q3’19 peak.
increased, rising 150% from Q4’19 levels. Q1'20 deals demonstrated a
Healthcare AI startups raised $984M in equity funding across 80 deals in Q1’20.
continued interest in women’s telehealth providers and improved prenatal
Funding rose by 37% from Q4’19 but stood well below Q3’19’s peak of $1.6B.
diagnostic solutions.
Deals rose by 3% from Q4’19 but were still down 34% compared to Q3’19’s peak
of 122 deals. Mental health funding reached a record-high. Mental health startups raised a
record $576M – surpassing the prior quarterly record by over 60% — across 44
Telehealth deals reached a record high in Q1'20. During the quarter, telehealth
deals in Q1’20. Employer-focused startups took center stage, closing several
startups closed 103 deals, double the amount seen in Q4’19 and the highest
$20M+ rounds.
level on record.
Cell therapies drove mega-rounds and exits in regenerative medicine in Q1’20.
Infectious disease and life-support devices dominated the medical devices
Deals to 3 cell therapy startups ranked among the top 10 healthcare deals
space. Infectious disease diagnostics startups were a focal point of Q1’20
globally for the quarter. Within the regenerative medicine space, cell-based
funding. Karius’ $165M Series B round ranked among the top 10 healthcare
immuno-oncology startups closed some of the largest rounds and were a focal
deals globally. Mega-rounds were common in the life-support segment as well:
point of M&A and IPO activity.
Element Science and Outset Medical raised $145.6M and $125M, respectively.
Deals and dollars to China-based digital health companies declined. Deals
declined by 51% quarter-over-quarter to 27 in Q1’20, the lowest level since
Q2’17. At $318M, Q1’20 funding was at its lowest since Q3’17.

Note: This report focuses on equity rounds to private healthcare companies. All data is sourced from CB Insights. 7
GET ALL THE DATA USED IN THIS REPORT

Artificial Intelligence in Digital health in China

Healthcare Collection Collection

Telehealth Collection Women’s Health Collection

Medical Devices Mental Health & Wellness

Collection Collection

Regenerative Medicine
Collection
 Q1’20 Global
Healthcare
Investment
Trends
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#AhaCBI
 GLOBAL HEALTHCARE INVESTMENT TRENDS

Funding grew 4% in Q1’20 while deals fell 6% since Q4’19

Quarterly global healthcare funding and deal count, Q2'17 – Q1'20
$18,000 1,400

1,318 1,304
$16,000
1,268 1,252 1,266 1,300

1,228
$14,000
1,150 1,156 1,200

1,107 1,125
$12,000 1,059 1,100

1,010
$10,000 1,000

$8,000 900

$6,000 800

$4,000 700

$2,000 600

$9,534 $9,547 $10,470 $13,385 $15,513 $16,562 $12,120 $13,521 $13,944 $13,095 $14,090 $14,624
$- 500

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Amount ($M) Deal Count

10
GLOBAL HEALTHCARE INVESTMENT TRENDS

Mid-stage deal share reached a new high in Q1’20

Percent share of global healthcare deals, Q2’17 – Q1’20

100%

90%
27% 28% 27% 25% 29% 29% 28% 27% 26% Other
30% 31% 30%
80%

70% 6% 7% 7% 6% 7%
7% 7% 7% 7% 8% 6% Late-stage
7%
60% 14% 13% 16% 15% 16%
14% 13% 14% 14% 15%
15% 18% Mid-stage
50%

40%

30%
52% 51% 50% 52% 52% 50% 51% 53% 51%
46% 48% 46% Early-stage
20%

10%

0%
Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Note: “Early-stage” includes convertible note, angel, seed, and Series A rounds. “Mid-stage” includes Series B and Series C rounds. “Late-stage” includes Series D, 11
Series E+, growth equity, and private equity rounds. “Other” includes unattributed and corporate minority rounds.
GLOBAL HEALTHCARE INVESTMENT TRENDS

North American funding grew 35% quarter-over-quarter

Global healthcare funding ($M) by continent, Q2’17 – Q1'20

$42
$70 $1,484
$450 Other
$1,879 $160 $172
$45 $62
$53 $1,463
$1,289 Europe
$1,363 $4,733 $45 $1,728 $2,089

$20 $4,229 $1,244 $2,899 $2,404 Asia

$48
$3,468 $3,872
$125 $791 $1,509 $2,985
$1,893 $4,171
$2,152
$1,924 $2,386 $2,472
$932

$10,303 $10,306 North America

$9,335 $8,939 $8,746
$8,508 $8,623 $7,990
$7,246 $7,658
$6,567 $6,932

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Other category includes Africa, South America, and Australia. 12

GLOBAL HEALTHCARE INVESTMENT TRENDS

The US saw a record number of mega-rounds in Q1’20

Quarterly healthcare mega-round deal count by country, Q2'17 – Q1'20

2
2

1
1
1 12 3
3

6 1
8 3
1 4 6 2
2 3 1
1 4
4 25
2 8
20
2 17
15 14 14 14
13
10 10
8 7

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

United States China United Kingdom India Switzerland

Includes countries with 5+ healthcare mega-rounds since Q2’17. 13

GLOBAL HEALTHCARE INVESTMENT TRENDS

China saw a dramatic drop in deals in Q1’20

Quarterly healthcare deals by country, Q2'17 – Q1'20

5 Deals 725 Deals

Includes countries with 100+ healthcare deals since Q2’17. 14

Top 10 global healthcare deals in Q1'20
Company Deal Date // Total Disclosed Select Investors Description
Amount Raised Funding

Mar ’20 // $851M Undisclosed Investors Lyell Immunopharma is a cellular therapy

$493M company dedicated to mastering immune cell
functionality.

Mar’20 // $350M Webster Equity Partners RCA is a management service organization

$350M (MSO) focused on retina specialist practices.

Jan’20 // $351.6M Greenoaks Capital Management, Jackson Square Alto Pharmacy offers free, same-day
$250M Ventures, Olive Tree Capital, SoftBank Group, Zola prescription delivery. It aims to find patients
Global Investors low prices and provides 24/7 pharmacist
support.

Jan’20 // $200M Andreessen Horowitz, Arboretum Ventures, ARCH EQRx is a biotechnology company focused on
$200M Venture Partners, Casdin Capital, Google Ventures, re-engineering the process from drug discovery
Nextech Invest, Section 32 to patient delivery with the goal of offering a
market-based solution for the rising cost of
medicines.

Mar’20 // $320M EcoR1 Capital, EDBI, F2 Ventures, Invus Group, MPM ElevateBio creates and operates a portfolio of
$170M Capital, Redmile Group, Samsara BioCapital, Surveyor cell and gene therapy companies to develop,
Capital, Vertex Ventures manufacture, and commercialize medicines.

15
Top 10 global healthcare deals in Q1’20
Company Deal Date // Total Disclosed Select Investors Description
Amount Raised Funding

Feb’20 // $240M General Catalyst, HBM Healthcare Investments, Khosla Karius is a life sciences company focused on
$165M Ventures, Lightspeed Venture Partners, SoftBank treating infectious diseases by sequencing
Group microbial cell-free DNA directly from blood.

Feb’20 // $157M Inner Mongolia Junzheng Energy Hebei Daan Pharmaceutical Co. Ltd.
$157M manufactures immunoglobulin products for use
in medicine.

Jan’20 // $250.6M Accel, Creandum, Index Ventures, Ontario Teachers' KRY is a CE-certified, app-based service for
$155M Pension Plan meeting doctors through video meetings in
Sweden.

Mar’20 // $150M Hudson Bay Capital Management, Johnson & Johnson Legend Biotech is a multinational
$150M Innovation, Lilly Asia Ventures, RA Capital biopharmaceutical company that focuses on
Management, Vivo Capital discovering and developing cutting-edge cell-
based therapies.

Jan’20 // $170M AllianceBernstein, Declaration Partners, Maverick Concerto HealthAI specializes in integrated clinical
$150M Ventures, SymphonyAI Group RWD and AI solutions.

16
 GLOBALLY THERE ARE

42 HEALTHCARE UNICORNS
VALUED IN AGGREGATE AT

$99.5 BILLION

17
 42 healthcare unicorns valued at $99.5B ASIA
Global healthcare companies with a private market valuation of $1B+ (4/8/2020) CHINA

EUROPE
NORTH AMERICA
UNITED KINGDOM FRANCE GERMANY SWITZERLAND $5.5B
UNITED STATES

$2.1B $2.0B $2.0B

$12B Valuation $7.0B $1.1B $3.5B $1.7B $1.0B $5.0B

$1.7B $1.0B
$5.5B $5.0B
$2.4B

$4.2B $3.2B
$1.6B

$3.2B $2.8B

$1.0B
$2.5B $1.8B
S. KOREA
$1.0B
$1.8B $1.5B

$1.0B

$1.3B $1.3B
$1.0B

$1.2B $1.2B $1.0B

$1.0B
MIDDLE EAST
$1.1B $1.0B
ISRAEL

$1.0B $1.0B
$1.0B $1.3B 18
$1.0B
 Q1’20 Global
Digital Health
Investment
Trends
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#AhaCBI
 GLOBAL DIGITAL HEALTH INVESTMENT TRENDS

Deals and dollars dropped 8% and 4% quarter-over-quarter

$6,200

$6,000
Global digital health funding and deal count, Q2'17
514– Q1'20
550

$5,800
500
$5,600

445
$5,400

$5,200 440 434

417 421 416
450

408
$5,000

$4,800 405
$4,600 389 384
363
400
$4,400

$4,200

$4,000
350

$3,800

$3,600

$3,400 300

$3,200

$3,000

$2,800 250

$2,600

$2,400
200
$2,200

$2,000

$1,800
150
$1,600

$1,400

$1,200
100

$1,000

$800

$600 50

$400

$200 $3,154 $3,398 $2,462 $3,845 $4,455 $5,773 $3,601 $3,472 $5,529 $3,619 $4,736 $4,542
$- -

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Amount ($M) Deal Count

20
GLOBAL DIGITAL HEALTH INVESTMENT TRENDS

Mid-stage deal share reached a new high at 23%

Percent share of global digital health deals, Q2’17 – Q1’20
100%

18% 15% 16% 14% 15% 15%

90% 20% 19% 19% 20% 19% 19% Other
5% 7% 2%
80% 4% 5% 7%
3% 4% 6% 4% 5% Late-stage
6%
15% 17%
70% 14% 11% 16% 15% 19%
16% 15% 19%
15% 23% Mid-stage
60%

50%

40%

64% 66% 65% 63% 66%

30% 61% 60% 59% 61% 60% 59%
53% Early-stage
20%

10%

0%
Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Note: “Early-stage” includes convertible note, angel, seed, and Series A rounds. “Mid-stage” includes Series B and Series C rounds. “Late-stage” includes Series D, 21
Series E+, growth equity, and private equity rounds. “Other” includes unattributed and corporate minority rounds.
GLOBAL DIGITAL HEALTH INVESTMENT TRENDS

‘Other’ funding surpassed $100M for the first time

Global digital health funding ($M) by continent, quarterly, Q2’17 – Q1’20

$16
$20
$591
$401
$35
$115 Other
$46
$1,377 $487
$1 $516 $2,080
$487 Europe
$27 $23
$395 $14 $1,167 $706
$53 Asia
$313
$284 $17 $1,396 $876
$386 $629
$211 $946
$398
$42
$249 $695 $987 $719
$396 $3,789
$3,047 $3,234 North America
$2,851 $2,875 $3,028
$2,502 $2,496
$1,945 $1,842 $2,001
$1,775

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Other category includes Africa, South America, and Australia. 22

GLOBAL DIGITAL HEALTH INVESTMENT TRENDS

Q1’20 saw 10 digital health mega-rounds, led by US

Digital health mega-round deal count by country, Q2'17 – Q1'20

1
1

1
4
1
1
1 1
1 1
2 4
1 1
1 1 1 7 1 3 7
6
5
4 2 4
3 3 3 3
2
1

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

United States China United Kingdom India Sweden France

Includes countries with 1+ digital health mega-rounds since Q2’17 23

GLOBAL DIGITAL HEALTH INVESTMENT TRENDS

Deals to China fell to lowest level since Q2’17

Digital health deals by country, Q2'17 – Q1'20

5 Deals 267 Deals

Includes countries with 20+ digital health deals since Q2’17. 24

THE UNITED STATES OF DIGITAL HEALTH

NY regained the #2 spot for deals among US states

Digital health deals by US state, quarterly, Q2'17 – Q1'20

92

73 72 73 74
69 69 67
64 64

48 50
43

33 32
29 30
24 26
23
19 19 18 28
16
21 20 21 20 21 21 19
18 18 17
12

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

California New York Massachusetts

Includes US states with 200+ digital health deals since Q2’17. 25

 THE UNITED STATES OF DIGITAL HEALTH

NY Metro deals surpassed Silicon Valley deals by 48%

Top 4 metro areas for digital health deals, Q2'17 – Q1'20

45

40

35
Number of digital health deals

30

25

20

15

10

-
Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Silicon Valley New York Metro Boston Metro Los Angeles Metro

26
Top 10 global digital health deals in Q1'20
Company Deal Date // Total Disclosed Select Investors Description
Amount Raised Funding

Feb’20 // $240M General Catalyst, HBM Healthcare Investments, Khosla Karius is a life sciences company focused on
$165M Ventures, Lightspeed Venture Partners, SoftBank treating infectious diseases by sequencing
Group microbial cell-free DNA directly from blood.

Jan’20 // $250.6M Accel, Creandum, Index Ventures, Ontario Teachers' KRY is a CE-certified, app-based service for
$155M Pension Plan meeting doctors through video meetings in
Sweden.

Jan’20 // $170M AllianceBernstein, Declaration Partners, Maverick Concerto HealthAI specializes in integrated clinical
$150M Ventures, SymphonyAI Group RWD and AI solutions.

Jan’20 // $318.7M Bojiang Capital, CEC Data Capital, CMB International Zhangshang Tangyi is a mobile diabetes
$144M Capital, LB Investment, Oriental Patron Financial management app that allows patients to record
Group, Samsung Electronics, SIG Asia Investments, their own health data and receive medical
Tasly Capital advice.

Mar’20 // $375M Durable Capital Partners, Fidelity Investments, T. Rowe Alignment Healthcare partners with providers,
$135M Price health plans, and hospitals to create continuous
care programs.

27
Top 10 global digital health deals in Q1'20
Company Deal Date // Total Disclosed Select Investors Description
Amount Raised Funding

Feb’20 // $349.7M .406 Ventures, Cox Enterprises, F-Prime Capital, Flare Iora Health is a value-based, tech-enabled primary
$126.4M Capital Partners, Khosla Ventures, Polaris Partners, care group that takes on financial and quality risks
Premji Invest, Temasek for patients in Medicare Advantage and other
insurance programs (e.g. employers).

Mar’20 // $243.0M Bill Gates, Euclidean Capital, Greenspring Associates, Kallyope integrates technologies in sequencing,
$112.0M Illumina Ventures, Lux Capital, Polaris Partners, Two computational biology, neural imaging, and
Sigma Ventures genetics to develop therapeutics targeting the
gut-brain axis.

Mar’20 // $409.4M Accel, Ascent Capital, Chiratae Ventures, GableHorn CureFit offers products for preventive and
$110.0M Investments, Temasek curative healthcare, combining engagement,
coaching, and delivery through a mix of online
and offline channels.

Mar’20 // $620.0M Baillie Gifford & Co., Franklin Templeton, New Tempus’s genomic sequencing services and its
$100.0M Enterprise Associates, Novo Holdings, T. Rowe Price analytical machine learning platform aim to
improve personalized cancer care.

Feb’20 // $137.8M Bain Capital Ventures, Casdin Capital, Define Ventures, Verana Health assembles clinical databases in
$100.0M Google Ventures medicine to empower physicians and accelerate
research for patients.

28
 Q1’20
Spotlight:
Covid-19
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#AhaCBI
COVID-19

Insurers waived out-of-pocket expenses for Covid-19

T A K E A W A Y : As the pandemic
continues, insurers will need to
reimagine their strategies to acquire
and support a consumer base with a
high unemployment rate. They may
also need to offer supply-side relief to
maintain a provider network that is
suffering financial distress. Employers,
which insure nearly 50% of Americans,
would likely need to follow suit with
expanded benefits for testing and
UnitedHealthcare Latest To Waive Patient Out-
treatment as the country starts to
Of-Pocket Costs For Coronavirus Treatment
slowly recover.
March 31, 2020 |

30
COVID-19

Life science stakeholders forged Life science partnerships formed in response to Covid-19
partnerships to accelerate
development of and expand
access to Covid-19 tests,
vaccines, treatments, and critical
medical equipment.

T A K E A W A Y : The key advantage

of most of these partnerships is the
increased speed at which they can
perform R&D and conduct clinical trials,
primarily by leveraging each other’s
distinct expertise. Coming out of the
pandemic, we may see an elevated level
of collaboration continue, especially if
there are success stories in producing
faster or better outcomes.
Tests Vaccines Treatments Research Medical
Equipment

Source: cbinsights.com *Note: includes both private-private and private-public partnerships. Only includes those 31
focused on Covid-19 tests, vaccines, treatments, research, or critical medical equipment
(i.e. ventilators, PPE). Reflects partnerships announced through 4/10/20.
COVID-19

Automakers allied with medtech to boost production

T A K E A W A Y : Some of these
partnerships, like those focused on
critical medical equipment, are being
formed between unlikely players. The
key advantages for medtech partners
in the near-term are vastly scaled
production and distribution.
Automakers are also experiencing low
demand, and therefore have excess
capacity temporarily. In the long run –
barring intent on the part of these
automakers to move into medtech –
these partnerships will likely dissolve
as the companies revert to pre-
pandemic operations.

32
COVID-19

Tech giants join forces on surveillance & supercomputing

Apple and Google are partnering to develop and deploy an automatic, 1 2
anonymous Bluetooth-based contact tracing technology for Covid-19.

Amazon, Google, and Microsoft joined a consortium spearheaded by the White House Office of Science and
Technology Policy, the US Department of Energy, and IBM called The Covid-19 High Performance Computing
(HPC) Consortium.

Together, members will provide bioinformatics, epidemiology, and molecular biology researchers with
computing power to execute computational research programs on Covid-19.

T A K E A W A Y : It’s clear from these partnerships that key healthcare stakeholders benefit from tech giants’ data and computing capabilities. Big tech
players also have an advantage by offering solutions that can be widely disseminated and scaled up in times of crisis. In the future, this could impact how
local, state, and federal public health responses are orchestrated, with tech incumbents playing a large role in strategy and implementation.

The New York Times 33

COVID-19

The pandemic prompted telehealth expansion initiatives

T A K E A W A Y : Telehealth usage — on
the part of both patients and providers —
meaningfully accelerated due to Covid-19
and payers’ responsive initiatives. Going
forward, telehealth use will likely come
down but remain above pre-pandemic
levels as providers expand their offerings
and as patients embrace the technology.
Post-pandemic reimbursement policy is a
bigger question and could influence what
types of services users shift toward. Those
without coverage could see more value in
telehealth services with affordable out-of-
pocket costs (e.g. asynchronous, text-only
platforms).

34
 Q1’20
Healthcare
Industry
Highlights
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#AhaCBI
 China-based healthcare startups
using digital technology as a key
differentiator over their
Companies developing medical Startups focused specifically on
competition
devices that aid in the diagnosis, cure, providing healthcare products and
mitigation, treatment, monitoring, or services to women
prevention of disease

Startups using technology to remotely DIGITAL Companies applying technology to

deliver clinical health services to HEALTH problems of emotional, psychological,
patients MEDICAL IN CHINA WOMEN’S and social well-being
DEVICES HEALTH

TELEHEALTH MENTAL
HEALTH
Companies selling AI SaaS to Companies involved in the R&D
healthcare clients or using AI to or commercialization of gene
develop products for the therapies, cell therapies, and
REGENERATIVE
healthcare market AI bio-engineered tissues
MEDICINE

GLOBAL HEALTHCARE REPORT Q1'20

36
 HEALTHCARE Q1 2020

DIGITAL
HEALTH
MEDICAL IN CHINA WOMEN’S
DEVICES HEALTH

TELEHEALTH MENTAL
HEALTH

REGENERATIVE
AI
MEDICINE

Artificial Intelligence in
GLOBAL HEALTHCARE REPORT Q1'20
Healthcare Collection

37
 HEALTHCARE AI DEALS AND DOLLARS

Funding rose QoQ but remains below Q3’19 peak

Healthcare AI funding and deal count, Q2’17 – Q1’20
$1,800 140

122
$1,600

120

$1,400

92 91
100

$1,200
85
81 78 80
80
$1,000

64 67
$800
59 58
60

45
$600

40

$400

20

$200

$306 $598 $517 $745 $859 $762 $573 $619 $1,058 $1,640 $719 $984
$- -

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Amount ($M) Deal Count

38
HIGHLIGHT #1: INFECTIOUS DISEASE STARTUPS LEAD TOP DEALS OF 2020

Top rounds to healthcare AI startups in Q1’20

Company Deal Date // Total Disclosed Select Investors Description
Amount Raised Funding

Feb’20 // $240.0M General Catalyst, Khosla Ventures, Lightspeed Karius is an infectious disease testing company
$165.0M Venture Partners, SoftBank Group, Tencent using machine learning to analyze pathogen DNA
Holdings and identify the cause of disease.

Jan’20 // $170.0M AllianceBernstein, Declaration Partners, Maverick Concerto is an oncology startup using AI to
$150.0M Ventures, Symphony Technology Group support clinical development and match patients
to treatments.

Mar’20 // $620.0M Lightbank, New Enterprise Associates, Novo Tempus focuses on cancer treatment, using AI to
$100.0M Holdings, Revolution Growth, T. Rowe Price identify therapeutic options based on patient
clinical and molecular data.

Jan’20 // $80.6M Matrix Capital Management, Matrix Partners, Medical research company using neural networks
$60.0M Mayo Clinic Ventures, NTT Venture Capital to gather patient notes, scientific literature, and
medical images for a biomedical database.

Mar’20 // $127.3M 14W, Anthem, Bessemer Venture Partners, Workflow automation startup using RPAs,
$51.0M BoxGroup, Comcast Ventures, Mangrove computer vision, and machine learning to
Capital Partners, Max Ventures automate administrative workflows.

39
HIGHLIGHT #2: KARIUS CLOSED THE LARGEST AI HEALTHCARE DEAL OF Q1’20

Total Funding Valuation

$240M $700M

Karius develops liquid biopsy tests for infectious

disease diagnosis. Its approach combines
machine learning algorithms with microbial cell-
free DNA sequencing.

Latest Round: Series B

Amount: $165M

Select Round General Catalyst, Khosla

Investors: Ventures, Lightspeed Venture
Partners, SoftBank Group

Similar Companies:

$239.1M $29M $9.6M

40
HIGHLIGHT #3: AI PLAYS PIVOTAL ROLE IN COMBATING COVID-19

Covid-19 has prompted a range of AI responses

41
 HEALTHCARE Q1 2020

DIGITAL
HEALTH
MEDICAL IN CHINA WOMEN’S
DEVICES HEALTH

TELEHEALTH MENTAL
HEALTH

REGENERATIVE
AI
MEDICINE

GLOBAL HEALTHCARE REPORT Q1'20 Telehealth Collection

42
 TELEHEALTH DEALS AND DOLLARS

Deals doubled from Q4’19, reaching record high

Telehealth funding and deal count, Q2’17 – Q1’20
$2,000 120

$1,800 103
100

$1,600

83
76
$1,400

80

70
$1,200
65 65 64 63
$1,000
57
51 51
60

$800
45
40

$600

$400

20

$200

$470 $329 $293 $1,017 $1,340 $1,900 $731 $945 $1,014 $1,210 $418 $1,584
$- -

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Amount ($M) Deal Count

43
HIGHLIGHT #1: COVID-19 PANDEMIC PUTS A SPOTLIGHT ON TELEHEALTH

Q1’20 telehealth mentions doubled from Q4’19 levels

Monthly news mentions, April ’15 – March ’20

News mentions

600

500

400

300

200

100

2016 2017 2018 2019 2020

44
HIGHLIGHT #2: TELEPHARMACY STARTUP ALTO CLOSED A $250M MEGA-ROUND

Total Funding Valuation

$351.6M $1.0B

Alto Pharmacy provides free same-day

delivery 7 days a week for prescriptions. It
also offers in-app and phone support, as well
as coordination with doctors and insurance
companies.

Latest Round: Series D (1/30/2020)

Amount: $250M

Lead Investor: SoftBank Group

Similar Companies

Acquired by
$270.0M $170.7M Amazon in 2018

45
HIGHLIGHT #3: TELEHEALTH CATERS TO FULL MIND AND BODY CARE

Teletherapy services continue to broaden

MENTAL HEALTH BEHAVIORAL HEALTH PHYSICAL HEALTH

Latest Round: Series C (3/11/2020) Latest Round: Unattributed (2/19/2020) Latest Round: Series C (2/4/2020)

Amount: $75M Amount: $2.5M Amount: $75M

About: Lyra’s platform connects
employees to therapists,
mental health coaches, and
personalized digital therapy
programs.
About: Halcyon Health is a substance
use disorder treatment
program focused on long-term
care.
About: Hinge Health’s digital care
program combines sensor-
guided exercise therapy with
health coaching to enable at-
home physical therapy or
rehabilitation.

46
 HEALTHCARE Q1 2020

DIGITAL
HEALTH
MEDICAL IN CHINA WOMEN’S
DEVICES HEALTH

TELEHEALTH MENTAL
HEALTH

REGENERATIVE
AI
MEDICINE

Medical Devices
GLOBAL HEALTHCARE REPORT Q1'20
Collection

47
 MEDICAL DEVICE DEALS AND DOLLARS

Deals dropped 15% from Q4’19, reaching recent low

Medical device funding and deal count, Q2’17 – Q1’20

$4,000 380
369
400

362 357
350 346 345 349
$3,500 334 330 350

307
$3,000 282 300

$2,500 250

$2,000 200

$1,500 150

$1,000 100

$500 50

$3,136 $3,332 $2,676 $2,946 $3,129 $3,423 $2,513 $3,357 $3,100 $2,707 $2,694 $2,932
$- -

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Amount ($M) Deal Count

48
HIGHLIGHT #1: WEARABLE DEFIBRILLATOR MAKER RAISES MEGA-ROUND

Total Funding Valuation

$192.6M Not disclosed

Latest Round: Series C (3/3/2020)

Amount: $145.6M

Element Science uses machine learning to

design wearable medical devices.
Its main product is a wearable defibrillator to
defend against Sudden Cardiac Death (SCD),
which claims 325,000 lives a year in the US.
Element plans to use the $145.6M from its
Series C financing round to fund additional
clinical trials and initial commercialization Select
efforts for its SCD device. Series C
Investors

49
HIGHLIGHT #2: IMPROVING INFECTIOUS DISEASE (ID) DIAGNOSTICS

Covid-19 highlighted the need for improved ID diagnostics

KARIUS LUCIRA HEALTH MAMMOTH BIOSCIENCES

Latest Round: Series B (2/24/2020) Latest Round: Series B (1/16/2020) Latest Round: Series B (1/30/2020)

Amount: $165M Amount: $17.5M Amount: $45M

About: Karius is a life sciences
company focused on treating
infectious diseases by
combining AI with sequencing of
microbial cell-free DNA.
About: Lucira Health develops
disposable point-of-care
molecular tests for diagnosing
infectious diseases.
About: Mammoth has developed a
CRISPR data platform for
diagnostics, which it claims
returns results within one hour
and does not require expensive
equipment or electricity.

50
HIGHLIGHT #3: DIALYSIS ANYWHERE

Outset Medical raised $125M and got FDA clearance

Latest Round: Series E (2/4/2020) About: Outset Medical has developed a dialysis machine that
purifies its own water and generates dialysate. It aims to
Amount: $125M help patients manage their own treatments from any
location. Outset's Tablo Hemodialysis System is intended to
Select Round T. Rowe Price, Fidelity Investments, Perceptive lower costs for dialysis providers and improve the care
Investors: Advisors, Partner Fund Management, and D1 experience for patients.
Capital Partners

51
 HEALTHCARE Q1 2020

DIGITAL
HEALTH
MEDICAL IN CHINA WOMEN’S
DEVICES HEALTH

TELEHEALTH MENTAL
HEALTH

REGENERATIVE
AI
MEDICINE

Digital health in China

GLOBAL HEALTHCARE REPORT Q1'20
Collection

52
 DIGITAL HEALTH IN CHINA DEALS AND DOLLARS

Q1’20 deal volume reached the lowest level since Q2’17

Digital health in China funding and deal count, Q2’17 – Q1’20
$2,000 80

$1,800 69
70

$1,600 60
56 55 60

$1,400 53
49
44 44
50

$1,200

41
$1,000
38 40

$800
27
25 30

$600

20

$400

10

$200

$167 $288 $610 $845 $1,224 $857 $338 $713 $1,768 $498 $659 $318
$- -

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Amount ($M) Deal Count

53
HIGHLIGHT #1: TELEHEALTH UTILIZATION SPIKED AMIDST COVID-19

Telehealth companies saw significant upticks in visits

(Spring Rain Software)

China.com, Sina Finance, VCBeat 54

HIGHLIGHT #2: VIRTUAL CARE DELIVERY CO RAISED THE LARGEST ROUND

Zhangshang Tangyi raised the largest deal in Q1’20

About: Zhangshang Tangyi (Literal translation:
Mobile Sugar Doctor) is a mobile diabetes
management app that allows patients to record their
own health data by connecting to glucose monitors,
communicating with providers, and accessing
educational content. The company also operates an
e-commerce platform where patients can buy
diabetes devices and supplies.

Latest Round: Series B (1/8/2020)

Amount: $143.9M

Select Round Samsung Electronics, SIG Asia

Investors: Investments, CMB International
Capital, Talsy Capital, Bojiang Capital,
CEC Data Capital

55
HIGHLIGHT #3: HEALTHCARE PAYMENTS REMAIN IN VOGUE

Startups now focus on a broad range of use cases

HEALTH INSURER GROUP HEALTH DRUG & DIAGNOSTICS
INFRASTRUCTURE INSURANCE PLATFORM ACCESS SOLUTIONS

(Insgeek)
Insgeek Cloud
Insurance Platform Pharmacies in 200+
Cities

• Buying and managing employee 100,000+ Patients

insurance online
• Flexible premium payment options,
support payments in installment
(Nuanwa Technology) • Flexible covered lives, premium
20+ Payment programs
calculated by days

Latest Round: Series A (2/28/2020) Latest Round: Series C (3/18/2020) Latest Round: Unattributed (3/10/2020)

Amount: Undisclosed Amount: $25.0M Amount: Undisclosed

About: Incubated by the public insurer
ZhongAn, Nuanwa offers services
to health insurers across benefit
design, underwriting, and care
management.
About: Insgeek partners with Chinese
SMEs to select and design group
health insurance products. The
company also offers a SaaS
product for SMEs to manage
healthcare benefits.
About: MediTrust serves specialty drug
manufacturers and diagnostics
companies. It provides patient
affordability services and also
offers a PBM solution to health
insurers.

56
 DIGITAL
HEALTH
MEDICAL IN CHINA WOMEN’S
DEVICES HEALTH

TELEHEALTH MENTAL
HEALTH

REGENERATIVE
AI
MEDICINE

GLOBAL HEALTHCARE REPORT Q1'20 Women’s Health Collection

57
 WOMEN’S HEALTH DEALS AND DOLLARS

Q1’20 funding increased by 150% quarter-over-quarter

Women’s health funding and deal count, Q2’17 – Q1’20
$500 55

$450
48 47 50

45
45

40
$400

38 40

$350

34
31 32 31
35

29
$300

30

$250

23 23 25

$200

20

$150
15

$100
10

$50
5

$66 $225 $249 $44 $128 $451 $97 $477 $304 $261 $144 $361
$- -

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Amount ($M) Deal Count

58
HIGHLIGHT #1: INCREASING ACCESS THROUGH VIRTUAL CARE

Top deals in women’s health emphasize telemedicine

MAVEN CLINIC ADVANTIA HEALTH

Latest Round: Series C (2/19/2020) Amount: $45M Latest Round: Series C (1/8/2020) Amount: $45M

About: Maven Clinic offers a digital health clinic for
women and families. It offers its virtual
healthcare services for individuals, employers,
and health plans. Its Series C round was led by
Icon Ventures, with other participating investors
including Sequoia Capital and Oak HC/FT.
About: Advantia Health offers both in-person and virtual
care for women through its network of OB-GYN
and specialist providers. In April 2019, it
acquired the post-partum telemedicine platform
Pacify. Its Series C funding came from
BlueMountain Capital Management.

59
HIGHLIGHT #2: AN EMPHASIS ON EARLY SCREENING

Diagnostics options for pregnant women grow

PRE-TERM RISK CARRIER SCREENING EARLY TESTING

Latest Round: Series E (2/27/2020) Latest Round: Series A (3/10/2020) Latest Round: Loan (2/19/2020)

Amount: $15.8M Amount: $15M Amount: $6M

About: Sera Prognostics offers a test
for risk management, which
aims to predict a woman’s
risk of preterm birth and other
pregnancy complications.
About: BillionToOne has developed a
prenatal test that screens
fetal cell-free DNA for 5
commonly inherited
conditions.
About: Cradle Genomics is
developing a comprehensive
prenatal test that aims to
provide insights during the
first trimester.

60
HIGHLIGHT #3: HARNESSING DATA FOR SAFER MATERNAL HEALTH

Tech solutions in maternal health saw key developments

Startup gets FDA clearance for Unified Women's Healthcare

device that can monitor baby’s Acquires Lucina Health
heart rate January 13, 2020 |
March 31, 2020 |

Sources: MedCityNews, PRNewswire 61

 HEALTHCARE Q1 2020

DIGITAL
HEALTH
MEDICAL IN CHINA WOMEN’S
DEVICES HEALTH

TELEHEALTH MENTAL
HEALTH

REGENERATIVE
AI
MEDICINE

Mental Health & Wellness

GLOBAL HEALTHCARE REPORT Q1'20
Collection

62
 MENTAL HEALTH DEALS AND DOLLARS

Funding to the space reached a record high in Q1’20

Mental health funding and deal count, Q2’17 – Q1’20

$600
52 55

50

44
42
$500

41
45

37 40

$400
33 33 35

30
28 30

$300

23 22 22 25

20

$200

15

10
$100

$137 $160 $76 $177 $247 $129 $125 $210 $357 $225 $115 $576
$- -

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Amount ($M) Deal Count

63
HIGHLIGHT #1: MORE EMPLOYER SOLUTIONS

Mental health product offerings for employers grow

LYRA HEALTH MODERN HEALTH SPRING HEALTH

Latest Round: Series C (3/11/2020) Latest Round: Series B (1/15/2020) Latest Round: Series A (1/24/2020)

Amount: $75M Amount: $31M Amount: $22M

About: Lyra Health offers a mental
health platform based on
evidence-based treatments.
About: Modern Health offers a suite of
mental health solutions
comprised of digital programs,
virtual coaching, and clinical
therapy.
About: Spring Health provides a platform
which emphasizes a data-driven
approach to delivering
individualized care.

64
HIGHLIGHT #2: STRATEGIC MOVES

Companies explore M&A and new payment models

Sources: HIT Consultant, FierceHealthcare 65

HIGHLIGHT #3: VR STARTUPS PICK UP EARLY STAGE INVESTMENTS

Applying virtual reality to treat mental health conditions

OXFORD VR C2CARE

Latest Round: Series A (2/12/2020) Amount: $13M Latest Round: Seed (1/13/2020) Amount: $1.1M

About: UK-based Oxford VR offers a clinically validated
virtual reality platform to treat mental health
patients. In July 2019, it partnered with the
National Mental Health Innovation Center
(NMHIC) to conduct pilots. Its Series A financing
was led by Optum Ventures and will be used to
expand in the US.
About: France-based C2Care offers a virtual reality
platform for healthcare professionals, including
those practicing in mental health. Current
applications include treating anxieties,
addictions, and eating disorders. The company
plans to continue its development and expand
internationally.

66
 DIGITAL
HEALTH
MEDICAL IN CHINA WOMEN’S
DEVICES HEALTH

TELEHEALTH MENTAL
HEALTH

REGENERATIVE
AI
MEDICINE

Regenerative Medicine
GLOBAL HEALTHCARE REPORT Q1'20
Collection

67
 REGENERATIVE MEDICINE DEALS AND DOLLARS

Funding rose by more than 70% since Q4’19

Regenerative medicine funding and deal count, Q2’17 – Q1’20

$2,500
85 90

80

71
$2,000
66
62
70

60 61
53 55 60

$1,500
51 52
46
43
50

40

$1,000

30

20
$500

10

$638 $644 $811 $1,912 $1,962 $1,813 $1,087 $1,010 $1,545 $1,335 $1,090 $1,876
$- -

Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20

Amount ($M) Deal Count

68
HIGHLIGHT #1: MEGA-ROUNDS ABOUND IN IMMUNO-ONCOLOGY (IO)

IO deals among the largest in regenerative med space

Company Deal Date // Total Disclosed Select Investors Description
Amount Raised Funding

Mar’20 // $851.0M N/A Lyell Immunopharma develops cell-based

$493M immunotherapies for cancer, with a focus on solid
tumors.

Mar’20 // $320.0M MPM Capital, Vertex Ventures, F2 Ventures, EcoR1 Elevate Bio has a portfolio of cell and gene
$170M Capital therapy companies.

Feb’20 // $123.0M Vivo Capital, HBM Healthcare Investments, ALX Oncology develops immuno-oncology
$105M Lightstone Ventures, Foresite Capital therapies.

Mar’20 // $130.5M Takeda Ventures, SV Health Investors, F-Prime Xilio Therapeutics develops tumor-selective
$100.5M Capital, MRL Ventures Fund immunotherapies designed to act at the site of
the tumor.

Feb’20 // $170.0M General Atlantic, WuXi AppTec, Hudson Bay China-based CANbridge Life Sciences offers
$98M Capital Management, YuanMing Capital specialty products in China and North Asia,
including cancer immunotherapy products.

69
HIGHLIGHT #2: NOTABLE IPOS AND ACQUISITIONS

Cell and gene therapy companies see key exits

Sources: FierceBiotech, BioWorld 70

HIGHLIGHT #3: STEM CELL APPLICATIONS

Different applications of stem cells emerge

CONDITIONING AGENTS NON-AGING STEM CELLS THERAPEUTICS

Latest Round: Series A (1/9/2020) Latest Round: Series A (3/17/2020) Latest Round: Unattributed (1/10/2020)

Amount: $14.1M Amount: $8M Amount: $5M

About: Jasper Therapeutics develops About: South Korea-based ENCell About: Tactitus Therapeutics
conditioning agents for safer, develops stem cells where develops stem cell therapies
more effective stem cell aging is suppressed to for blood cancers.
transplants. preserve functions.

71
 Most Active
Healthcare VCs
In Q1’20
The image part with relationship ID rId2 was not found in the file.

#AhaCBI
The most active healthcare VCs in Q1'20
By unique healthcare company investments (new or follow-on)

Rank Investor HQ Country Q1'20 Healthcare Investments

Excludes incubators/accelerators Y Combinator (34 deals), Techstars (10 deals), and SOSV (8 deals). 73
The most active healthcare VCs in Q1'20
By unique healthcare company investments (new or follow-on)

Rank Investor HQ Country Q1'20 Healthcare Investments

6
(NewMed Medical)

6 *
6

Excludes incubators/accelerators like Y Combinator (34 deals), Techstars (10 deals), and SOSV (8 deals). *A logo for Affinia Therapeutics could not be found. 74
 Most Active
Digital Health
VCs In Q1’20
The image part with relationship ID rId2 was not found in the file.

#AhaCBI
The most active digital health VCs in Q1'20
By unique digital health company investments (new or follow-on)

Rank Investor HQ Country Q1'20 Healthcare Investments

76
 Methodology
CB Insights encourages you to review the methodology and definitions employed to better understand the numbers presented in this report. If you have any
questions about the definitions or methodological principles used, we encourage you to reach out to CB Insights directly. Additionally, if you feel your firm has
been under-represented, please send an email to info@cbinsights.com and we can work together to ensure your firm’s investment data is up to date.

What is included: What is excluded:

― Equity financings into emerging healthcare companies. Equity financings include:
convertible notes, seed, Series A, Series B, Series C, Series D, Series E+, private equity,
growth equity, other venture capital, and other investment rounds.
― Fundings of only private companies. Funding rounds raised by public companies of any
kind (including Pink Sheets) are excluded from our numbers, even if they received
investment from a venture firm.
― Only includes the investment made in the quarter for tranched investments. If a company
does a second closing of its Series B round for $5M and previously had closed $2M in a
prior quarter, only the $5M is reflected in our results.
― Round numbers reflect what has closed — not what is intended. If a company indicates the
closing of $5M out of a desired raise of $15M, our numbers reflect only the amount which
has closed.
― Only verifiable fundings are included. Fundings are verified via various federal and state
regulatory filings, direct confirmation with firms or investors, or press releases.
― For the purposes of this report, digital health is defined as companies in the healthcare
space that use technology/software as a key differentiator vs. their competition. This
includes everything from disease diagnostics to tech-enabled health to AI-driven drug
discovery, and more.
― Categories are not mutually exclusive (for example, a company that applies AI to mental
health would be included in both categories). Criteria for categories can be found on page
37.
― Historical funding data is subject to change as our technology & data operations explore
data sets globally and refine company classifications.
— No contingent funding. If a company receives a commitment for $20M subject to hitting
certain milestones but first gets $8M, only the $8M is included in our data.
— No business development/R&D arrangements, whether transferable into equity now, later,
or never. If a company signs a $300M R&D partnership with a larger corporation, this is not
equity financing, nor is it from a venture capital firm. As a result, it is not included.
— No buyouts, consolidations, and/or recapitalizations. All three of these transaction types
are commonly employed by private equity firms and are tracked by CB Insights. However,
they are excluded for the purposes of this report.
— No private placements. These investments, also known as PIPEs (Private Investment in
Public Equities), are excluded even if made by a venture capital firm.
— No debt/loans of any kind (except convertible notes). Venture debt or any kind of
debt/loan issued to emerging startup companies, even if included as an additional part of
an equity financing, is not included. If a company receives $3M with $2M from venture
investors and $1M in debt, only the $2M is included.
— No government funding. Grants, loans, or equity financings by the federal government,
state agencies, or public-private partnerships to emerging startup companies are not
included.

77