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In The Shadow Of Covid-19: Consumer
Investment & Sector Trends To Watch
State Of Healthcare Q3’20 Report: Sector And
Investment Trends To Watch
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Contents
9
Q3’20 Global
Healthcare
Investment Trends
19
Q3’20 Global
Digital Health
Investment Trends
32
Q3’20 Healthcare
Industry Highlights
72
Appendix
7
Summary of findings
Note: This report focuses on equity rounds to private healthcare companies. All data is sourced from CB Insights.
GLOBAL HEALTHCARE INVESTMENT
A new record for global healthcare investment: Global healthcare funding to
private companies reached a new quarterly record of $21.8B in Q3’20. There
were 1,539 equity investments in Q3’20, growing 18% quarter-over-quarter (QoQ).
Funding to North America- and Asia-based companies saw a 20% uptick: North
America-based companies raised nearly $13B in Q3’20, the highest quarterly
level on record and a 21% increase from Q2’20. Asia-based companies saw a
20% uptick QoQ, raising over $6B. This was driven by a record-high number of
mega-rounds in the US and China (48 in total).
Globally, there are 41 healthcare unicorns worth a combined $102B: Five new
unicorns were added to the list, while 4 former unicorns such as GRAIL and
GoodRx saw exits in Q3’20.
GLOBAL DIGITAL HEALTH INVESTMENT
Digital health deals and dollars reached new heights: Global digital health
equity funding grew by 73% to reach $8.4B in Q3’20 — setting a new record. This
was boosted by an all-time high of mega-rounds (23). There were 502 deals, an
increase of 8% compared to the previous quarter.
New York state saw a decline in digital health deals in Q3’20: With 40 deals in
Q3’20, New York saw a 20% decline in deal activity, although it maintained its #2
spot. California saw a 12% increase in deal volume, while Massachusetts saw a
33% increase. However, the New York metro area maintained its lead in digital
health deals for the third consecutive quarter, beating out Silicon Valley and
Boston.
HEALTHCARE INDUSTRY TRENDS
Healthcare AI deals and dollars saw an uptick in Q3’20: Healthcare AI companies
raised $2.1B in equity funding across 121 deals — a quarterly uptick of 37% and 38%,
respectively. Funding reached a record high in Q3’20.
Deals and dollars for telehealth skyrocketed: Telehealth reached a new funding
record of $2.8B in Q3’20 – a 73% increase QoQ – across 162 deals. This was driven
by the top 5 telehealth deals, which accounted for nearly $900M of quarterly funding.
Funding to medical devices continued to rise: Medical device companies raised over
$5B in funding — a new quarterly high — across 478 deals. Deal count saw a 20%
jump from the previous quarter.
Funding to drug R&D technology soared amid Covid-19: The quarter saw 38 deals
and nearly $1.5B in funding to the space. This funding total was largely driven by 5
mega-rounds, including AI drug discovery company XtalPi’s $319M round and clinical
research platform Taimei Technology’s $176M round.
Women’s health funding more than doubled in Q3’20: Women’s health funding saw a
139% increase QoQ, marking its second-strongest quarter since Q1’19. Deal volume
saw a new record with 68 deals – a 17% increase QoQ. Two key acquisitions were
also made.
Mental health deals reached a record high: Mental health companies saw record
deal volume in Q3’20 with 68 deals. However, funding declined for the second
consecutive quarter, falling by 16% QoQ to $417M.
Mega-rounds boosted health plans & benefits management funding: Funding to
health plans & benefits management companies skyrocketed due to 5 mega-rounds,
which made up nearly $1.2B. The space also reached a peak in deal count with 29
deals, a 21% increase QoQ.
GET ALL THE DATA USED IN THIS REPORT
Digital Health In China
Collection
Women’s Health Collection
Artificial Intelligence in
Healthcare Collection
Telehealth Collection
Mental Health & Wellness
Collection
Medical Devices
Collection
Regenerative Medicine
Collection
Clinical Trials Tech
Health Plans & Benefits
Management Collection
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#AhaCBI
Q3’20 Global
Healthcare
Investment
Trends
10
$11,275
$13,815
$16,214
$17,063
$11,989
$14,123
$14,300
$13,490
$15,381
$14,873
$18,410
$21,802
1,205
1,268
1,431
1,376
1,234
1,366
1,402
1,350
1,295
1,240
1,299
1,539
500
700
900
1100
1300
1500
$-
$5,000
$10,000
$15,000
$20,000
$25,000
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Deals and dollars saw a new record in Q3’20
Quarterly global healthcare funding and deal count, Q4’17 – Q3’20
GLOBAL HEALTHCARE INVESTMENT TRENDS
Amount ($M)
Deal Count
11
59%
53%
54%
50%
48%
52%
50%
54%
52%
48%
46%
46%
0%
13%
15%
14%
15%
14%
15%
14%
15%
17%
17%
18%
9%
8%
7%
9%
9%
7%
8%
6%
8%
7%
6%
9%
32%
26%
24%
27%
29%
27%
27%
25%
25%
28%
30%
28%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Late-stage deal activity picked up in Q3’20
Percentage share of global healthcare deals by stage, Q4’17 – Q3’20
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, Series E+, growth equity, and private equity rounds. “Other” includes unattributed and corporate minority rounds.
GLOBAL HEALTHCARE INVESTMENT TRENDS
Other
Late-stage
Early-stage
Mid-stage
12
$7,016
$8,695
$9,466
$10,167
$8,474
$9,311
$8,783
$8,259
$9,114
$10,800
$10,735
$12,985
$2,693
$3,686
$4,849
$5,317
$2,195
$3,053
$4,016
$2,232
$4,151
$2,546
$5,372
$6,443
$1,520
$1,388
$1,819
$1,549
$1,272
$1,696
$1,341
$2,941
$2,040
$1,470
$2,229
$2,329
$45
$46
$79
$30
$48
$63
$160
$58
$76
$58
$75
$45
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Funding in all 3 regions saw an uptick
Global healthcare funding ($M) by continent, Q4’17 – Q3'20
Note: “Other” includes Africa, South America, and Australia.
GLOBAL HEALTHCARE INVESTMENT TRENDS
Other
Europe
North America
Asia
13
10
13
17
19
13
15
14
15
8
27
23
31
5
4
8
15
4
6
8
3
8
3
9
17
3
2
3
2
2
2
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
US & China mega-rounds dominated in Q3’20
Note: Includes countries with 5+ healthcare mega-rounds since Q4’17. Mega-rounds are rounds worth $100M+.
GLOBAL HEALTHCARE INVESTMENT TRENDS
Quarterly healthcare mega-round deal count by country, Q4'17 – Q3'20
India
United Kingdom
China
United States
Switzerland
14
China-based deals grew more than 50% from Q2’20
Quarterly healthcare deals by country, Q4'17 – Q3'20
Note: Includes countries with 100+ healthcare deals since Q4’17.
GLOBAL HEALTHCARE INVESTMENT TRENDS
1 deal
765 deals
15
Company
Deal Date // Amount
Raised ($M)
Total Disclosed
Funding ($M)
Select Investors
Description
Top 10 global healthcare deals in Q3’20 (1/2)
GLOBAL HEALTHCARE INVESTMENT TRENDS
Sep’20 //
$500M
Aug’20 //
$830M
Jul’20 //
$300M
Sep’20 //
$319M
Jul’20 //
$297M
$1,575M
$1,830M
$343M
$384M
$1,281M
Blackstone, New Enterprise
Associates, Bessemer Venture
Partners, Greenspring Associates
Hillhouse Capital Management
Gilead Sciences
Tencent Holdings, Mirae Asset
Financial Group, SoftBank Group,
Sequoia Capital China
Qatar Investment Authority,
GlaxoSmithKline
Bright Health is an online insurance marketplace that offers
affordable Individual & Family and Medicare Advantage health
plans.
China-based JD Health is a platform for online pharmacy,
telemedicine, and other consumer health services.
Tizona Therapeutics develops cancer immunotherapies.
Gilead’s $300M corporate minority investment includes the
option to acquire Tizona in the future.
XtalPi’s AI platform predicts optimal crystal structures for small
molecule drug R&D.
CureVac develops mRNA-based cancer immunotherapies
and prophylactic vaccines against infectious diseases.
16
Company
Deal Date // Amount
Raised ($M)
Total Disclosed
Funding ($M)
Select Investors
Description
Top 10 global healthcare deals in Q3’20 (2/2)
GLOBAL HEALTHCARE INVESTMENT TRENDS
Aug’20 //
$270M
Jul’20 //
$275M
Sep’20 //
$239M
Jul’20 //
$257M
Aug’20 //
$230M
$509M
$1,241M
$504M
$367M
$480M
Andreessen Horowitz, Google
Ventures, Novartis, Polaris Partners,
Roche Venture Fund
Kinnevik, Walgreens Boots Alliance
Epic Ventures, Felicis Ventures, Two
Sigma Ventures, Obvious Ventures,
Mubadala Ventures
The Blue Venture Fund, Third Rock
Ventures, Perceptive Advisors,
Intermountain Ventures
BlueRun Ventures, Sinovation Ventures,
Swiss Reinsurance Company, Tencent
Holdings
Freenome develops liquid biopsy tests for early cancer
detection, with an initial focus on colorectal cancer.
VillageMD provides primary care services through its clinics along
with at-home and virtual visits.
Recursion Pharmaceuticals uses experimental biology and
artificial intelligence to power its internal pipeline of drugs for rare
diseases.
Thrive Earlier Detection develops a liquid biopsy test
known as CancerSEEK, which is designed to screen for
multiple types of cancers.
Waterdrop is a health insurance crowdfunding platform that
allows people to contribute money when they are healthy and then
access funds to pay for medical bills if they become ill.
17
41 HEALTHCARE UNICORNS
$102B
G L O B A L L Y T H E R E A R E
V A L U E D I N A G G R E G A T E A T
18
SWITZERLAND
EUROPE
$2B
$1B
41 healthcare unicorns valued at $102B in total
Global healthcare companies with a private market valuation of $1B+ (10/7/2020)
UNITED KINGDOM
MIDDLE EAST
$1.3B
ISRAEL
$2.1B
GERMANY
CHINA
ASIA
$5.5B
$5B
$2.4B
FRANCE
$1.1B
$3.5B
$1B
$1B
$1B
$1B
$2B
$1B
NORTH AMERICA
UNITED STATES
$12B valuation
$1B
$2.5B
$1.8B
$5.5B
$4.2B
$7B
$5B
$3.2B
$1.8B
$1.5B
$1.3B
$1.2B
$1B
$1B
S. KOREA
$1B
$1B
$1B
$1B
$1B
$1.5B
$1.1B
$1.1B
$1B
$2.9B
$1.7B
The image part with relationship ID rId2 was not found in the file.
#AhaCBI
Q3’20 Global
Digital Health
Investment
Trends
20
$3,049
$5,047
$4,916
$5,804
$3,142
$3,621
$5,870
$3,889
$4,935
$4,927
$4,839
$8,352
389
439
538
456
381
440
463
437
452
432
464
502
0
100
200
300
400
500
600
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Funding surpassed $8B while deals increased
Quarterly global digital health funding and deal count, Q4’17 – Q3’20
GLOBAL DIGITAL HEALTH INVESTMENT TRENDS
Amount ($M)
Deal Count
21
63%
62%
65%
60%
62%
65%
60%
67%
60%
55%
52%
54%
15%
14%
14%
15%
16%
16%
19%
17%
18%
22%
22%
18%
4%
6%
5%
6%
4%
5%
6%
2%
7%
5%
5%
10%
18%
18%
15%
20%
17%
14%
14%
14%
15%
17%
22%
18%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Late-stage deals grew in deal share from Q2’20
Percentage share of global digital health deals by stage, Q4’17 – Q3’20
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, Series E+, growth equity, and private equity rounds. “Other” includes unattributed and corporate minority rounds.
GLOBAL DIGITAL HEALTH INVESTMENT TRENDS
Other
Late-stage
Early-stage
Mid-stage
22
$1,793
$2,599
$2,622
$3,672
$2,428
$2,085
$3,346
$2,008
$3,270
$3,537
$3,396
$5,816
$840
$2,181
$1,632
$1,491
$459
$923
$2,074
$726
$1,154
$917
$782
$2,151
$396
$266
$615
$640
$225
$599
$431
$1,133
$468
$439
$605
$363
$20
$0
$48
$1
$30
$14
$20
$23
$44
$34
$57
$22
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Asia saw a nearly 3x funding increase QoQ
Global digital health funding ($M) by continent, Q4’17 – Q3'20
Note: “Other” includes Africa, South America, and Australia.
GLOBAL DIGITAL HEALTH INVESTMENT TRENDS
Other
Europe
Asia
North America
23
2
3
4
6
4
2
4
5
2
8
7
19
1
2
3
5
1
2
4
1
3
1
4
2
1
2
1
1
1
1
1
1
1
1
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
The US made up more than 75% of mega-rounds
Digital health mega-round deal count by country, Q4'17 – Q3'20
Note: Includes countries with 1+ digital health mega-rounds since Q4’17. Mega-rounds are rounds worth $100M+.
GLOBAL DIGITAL HEALTH INVESTMENT TRENDS
1
1
1
1
1
1
India
United Kingdom
China
United States
Sweden
France
Israel
Canada
24
Both US and China saw a slight uptick in deals
Quarterly digital health deals by country, Q4'17 – Q3'20
Note: Includes countries with 30+ digital health deals since Q4’17.
GLOBAL DIGITAL HEALTH INVESTMENT TRENDS
1 deal
274 deals
25
California & Massachusetts saw an increase in deal activity
Note: Includes US states with 200+ digital health deals since Q4’17.
THE UNITED STATES OF DIGITAL HEALTH
69
69
96
79
51
51
72
81
69
76
69
77
18
27
44
22
19
30
34
32
19
31
50
40
16
23
23
20
22
19
23
24
22
32
18
24
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Digital health deals by US state, Q4'17 – Q3'20
New York
Massachusetts
California
26
Company
Deal Date // Amount
Raised ($M)
Total Disclosed
Funding ($M)
Select Investors
Description
California saw an uptick in deal activity, with 77 deals
THE UNITED STATES OF DIGITAL HEALTH
Sep’20 //
$175M
Aug’20 //
$270M
Aug’20 //
$123M
Jul’20 //
$135M
Aug’20 //
$110M
$281M
$510M
$176M
$239M
$284M
Greylock Partners, Harrison Metal,
The Carlyle Group, Venrock
Fidelity Investments, Bain Capital,
Google Ventures, Novartis, Polaris
Partners, Perceptive Advisors
Y Combinator, Tencent Holdings, Data
Collective, AME Cloud Ventures, B
Capital Group, Baidu Ventures
Menlo Ventures, ARCH Venture
Partners, Matrix Capital
Management, Illumina Ventures
Meritech Capital Partners, Adams Street
Partners, Greylock Partners, Casdin
Capital
Grand Rounds offers a virtual platform that helps employees
navigate their health benefits and get access to high-quality
medical care.
Freenome develops liquid biopsy tests for early cancer
detection, with an initial focus on colorectal cancer.
Atomwise’s neural networks create 3D models of molecular
compounds and simulate biochemical reactions to predict if
compounds will bind to target proteins.
Encoded Therapeutics develops a genomics-driven discovery
platform for viral gene therapies through screening and
computational methods.
Lyra Health provides mental health benefits. Through its digital
platform, employees and dependents can access therapists,
coaches, and medication prescribing.
Top digital health deals in California, Q3'20
27
Company
Deal Date // Amount
Raised ($M)
Total Disclosed
Funding ($M)
Select Investors
Description
New York saw a 20% decline QoQ in deal activity
THE UNITED STATES OF DIGITAL HEALTH
Jul’20 //
$54M
Jul’20 //
$200M
Jul’20 //
$100M
Aug’20 //
$47M
$139M
$377M
$100M
$65M
Thrive Capital, 8VC, Kinnevik, Redpoint
Ventures, EmblemHealth, Alphabet
FirstMark Capital, General Catalyst, The
Chernin Group, BoxGroup, Initialized
Capital
Volition Capital, Greycroft, Lerer
Hippeau Ventures, Horsley Bridge
Partners
Polaris Partners, Northzone Ventures,
Maveron, Johnson & Johnson
Innovation
Cityblock Health provides health care services for underserved
communities, including primary care, behavioral health, and social
services.
Ro powers D2C digital health clinics: Roman for men’s health, Rory for
women’s health, and Zero for smoking cessation. Ro Pharmacy also
offers generic medications for $5 per month.
Medly Pharmacy provides a full-service digital pharmacy for
scheduling prescription deliveries.
Thirty Madison develops D2C telehealth solutions for
chronic conditions. Current offerings include treatments
for hair loss, migraines, and chronic acid reflux.
Sep’20 //
$62M
$62M
Spectrum Equity, The Blue Venture
Fund
PWNHealth develops diagnostic testing and care
intervention solutions for various healthcare stakeholders.
Top digital health deals in New York, Q3'20
28
Company
Deal Date // Amount
Raised ($M)
Total Disclosed
Funding ($M)
Select Investors
Description
Massachusetts saw an increase to 24 deals in Q3’20
THE UNITED STATES OF DIGITAL HEALTH
Sep’20 //
$319M
Sep’20 //
$90M
Jul’20 //
$257M
Sep’20 //
$100M
$384M
$186M
$367M
$142M
Tencent Holdings, China Securities
Investment, Mirae Asset Financial
Group, SoftBank Group
Avenir Growth Capital, Susquehanna
International Group, Octave Life
Sciences, Humboldt Fund
Casdin Capital, The Blue Venture Fund,
Third Rock Ventures
Sequoia Capital, MassMutual
Ventures, OpenSpace Ventures,
SoftBank Group, EDBI
XtalPi’s AI platform predicts optimal crystal structures for small
molecule drug R&D.
Finch Therapeutics uses its machine learning platform for
drug discovery & development of microbiome-based therapies.
Thrive Earlier Detection develops a liquid biopsy test
known as CancerSEEK, which is designed to screen for
multiple types of cancers.
Biofourmis develops AI-powered software-based
therapeutics using wearables and its analytics platform
across multiple therapeutic areas.
*AmWell raised $801M in equity funding before its IPO on 9/17/2020.
Aug’20 //
$100M
$801M*
Google Cloud Platform
AmWell offers a telehealth platform for urgent, acute, and post-
acute care. It also offers remote chronic care management
solutions.
Top digital health deals in Massachusetts, Q3'20
29
NY metro area maintains its lead in deal activity
THE UNITED STATES OF DIGITAL HEALTH
-
5
10
15
20
25
30
35
40
45
50
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Number of digital health dealsNew York
Silicon Valley
Boston
Los Angeles
Top 4 US metro areas for digital health deals, Q4'17 – Q3'20
30
Company
Deal Date // Amount
Raised ($M)
Total Disclosed
Funding ($M)
Select Investors
Description
Top 10 global digital health deals in Q3’20 (1/2)
GLOBAL DIGITAL HEALTH INVESTMENT TRENDS
Sep’20 //
$500M
Aug’20 //
$830M
Jul’20 //
$275M
Sep’20 //
$319M
Aug’20 //
$270M
$1,575M
$1,830M
$1,241M
$384M
$509M
Blackstone, New Enterprise
Associates, Bessemer Venture
Partners, Greenspring Associates
Hillhouse Capital Management
Kinnevik, Walgreens Boots Alliance
Tencent Holdings, Mirae Asset
Financial Group, SoftBank Group,
Sequoia Capital China
Fidelity Investments, Bain Capital,
Google Ventures, Novartis, Polaris
Partners, Perceptive Advisors
Bright Health is an online insurance marketplace that offers
affordable Individual & Family and Medicare Advantage health
plans.
China-based JD Health is a platform for online pharmacy,
telemedicine, and other consumer health services.
VillageMD is a national provider of value-based primary care
services through traditional freestanding clinics and at-home
& virtual visits.
XtalPi’s AI platform predicts optimal crystal structures for small
molecule drug R&D.
Freenome develops liquid biopsy tests for early cancer
detection, with an initial focus on colorectal cancer.
31
Company
Deal Date // Amount
Raised ($M)
Total Disclosed
Funding ($M)
Select Investors
Description
Top 10 global digital health deals in Q3’20 (2/2)
GLOBAL DIGITAL HEALTH INVESTMENT TRENDS
Sep’20 //
$239M
Jul’20 //
$257M
Jul’20 //
$200M
Aug’20 //
$230M
Sep’20 //
$176M
$504M
$367M
$377M
$480M
$454M
Epic Ventures, Felicis Ventures, Two
Sigma Ventures, Leaps by Bayer, Data
Collective
Casdin Capital, The Blue Venture Fund,
Third Rock Ventures, Gamma 3, Exact
Sciences
Initialized Capital, General Catalyst, TQ
Ventures, BoxGroup
Swiss Reinsurance Company, DianLiang
Capitals, Tencent Holdings, Meituan
Dianping
SoftBank China Venture Capital,
Hillhouse Capital Management, Matrix
Partners China
Recursion Pharmaceuticals uses experimental biology and
artificial intelligence to power its internal pipeline of drugs for
rare diseases.
Thrive Earlier Detection develops a liquid biopsy test
known as CancerSEEK, which is designed to screen for
multiple types of cancers.
Ro offers telehealth services through its 3 brands: Roman, Rory,
and Zero. It also offers online pharmacy services.
Waterdrop is a health insurance crowdfunding platform that
allows people to contribute money when they are healthy and then
access funds to pay for medical bills if they become ill.
Taimei Technology develops a suite of AI-enabled software
products in clinical research.
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#AhaCBI
Q3’20
Healthcare
Industry
Highlights
33
HEALTH PLANS
& BENEFITS
MANAGEMENT
WOMEN’S
HEALTH
AI
MEDICAL
DEVICES
MENTAL
HEALTH
Companies selling AI SaaS to
healthcare clients or using AI to
develop products for the
healthcare market
Companies developing medical
devices that aid in the diagnosis, cure,
mitigation, treatment, monitoring, or
prevention of disease
Companies focused specifically
on providing healthcare products
and services to women
Companies developing products
and services to streamline drug
R&D (drug discovery, pre-clinical
testing, clinical trials)
Companies using technology to
remotely deliver clinical health services
to patients
Companies applying technology to
problems of emotional, psychological,
and social well-being
GLOBAL HEALTHCARE REPORT Q3’20
TELEHEALTH
CLINICAL
TRIALS
Companies enabling more
transparent and comprehensive
private healthcare at a lower
cost
34
HEALTH PLANS
& BENEFITS
MANAGEMENT
WOMEN’S
HEALTH
AI
MEDICAL
DEVICES
MENTAL
HEALTH
GLOBAL HEALTHCARE REPORT Q3’20
TELEHEALTH
CLINICAL
TRIALS
HE A LTHCARE
HE A LTHCARE Q 3 2020
Artificial Intelligence In
Healthcare Collection
35
$1,022
$1,228
$906
$919
$581
$622
$1,391
$1,661
$744
$1,030
$1,547
$2,112
59
73
99
73
65
91
91
125
83
86
88
121
0
20
40
60
80
100
120
$-
$500
$1,000
$1,500
$2,000
$2,500
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Healthcare AI startups raised over $2B in Q3’20
Healthcare AI funding and deal count, Q4’17 – Q3’20
HEALTHCARE AI DEALS AND DOLLARS
Amount ($M)
Deal Count
36
Company
Deal Date // Amount
Raised ($M)
Total Disclosed
Funding ($M)
Select Investors
Description
Drug R&D leads top healthcare AI rounds again
HIGHLIGHT #1: TOP 5 HEALTHCARE AI DEALS OF Q3’20
Aug’20 //
$270M
Sep’20 //
$319M
Aug’20 //
$123M
Sep’20 //
$239M
Sep’20 //
$106M
$509M
$384M
$176M
$504M
$233M
Google Ventures, Kaiser Permanente
Ventures, T. Rowe Price, Andreessen
Horowitz, Bain Capital, Novartis
Sequoia Capital China, Tencent
Holdings, SoftBank Group, Morningside
Venture Capital
Y Combinator, Tencent Holdings, Data
Collective, AME Cloud Ventures, B
Capital Group, Baidu Ventures
Felicis Ventures, Lux Capital, Epic
Ventures, Leaps by Bayer, Two Sigma
Ventures, Baillie Gifford & Co.
Khosla Ventures, Silicon Valley Bank,
General Catalyst, SVB Capital, NCT
Ventures
Freenome uses machine learning to detect cancer-linked cell-free
biomarkers circulating in the blood.
XtalPi’s AI platform predicts optimal crystal structures for small
molecule drug R&D.
Atomwise’s neural networks create 3D models of molecular
compounds and simulate biochemical reactions to predict if
compounds will bind to target proteins.
Recursion Pharmaceuticals uses experimental biology and
artificial intelligence to power its internal pipeline of drugs for rare
diseases.
Olive combines robotic process automation (RPA), computer
vision, and machine learning to automate administrative
workflows, such as claims processing.
37
Biofourmis mega-round is a first for AI RPM
Note: Mega-rounds are rounds worth $100M+.
HIGHLIGHT #2: FIRST AI REMOTE PATIENT MONITORING (RPM) MEGA-ROUND
Biofourmis combines wearables and an AI platform to
track users’ vitals and provide predictive insights into
health, from monitoring oncology patients to patient
rehospitalization risk. The company recently
partnered with the University of Hong Kong to
discover physiological signals in Covid-19 patients.
About:
Series C (9/2/20)
$100M
Sequoia Capital, SoftBank Group,
MassMutual Ventures, OpenSpace Ventures,
EDBI
Latest Round:
Amount:
Round
Investors:
38
RPM & diagnostics further adopt AI amid
Covid-19
HIGHLIGHT #3: COVID-19 PROPELS AI ADOPTION
GE healthcare and Lunit expand AI
partnership to improve COVID-19 care
July 14, 2020 |
NIH harnesses AI for COVID-19 diagnosis,
treatment, and monitoring
August 5, 2020 |
Biofourmis' AI-Powered Remote
Monitoring Platform Deployed to Monitor
COVID-19 Patients in Singapore
July 29, 2020 |
Artificial DoD, Philips Use Artificial
Intelligence to Monitor COVID-19 in
COVID-19 drug repurposing
September 18, 2020 |
39
HEALTH PLANS
& BENEFITS
MANAGEMENT
WOMEN’S
HEALTH
AI
MEDICAL
DEVICES
MENTAL
HEALTH
GLOBAL HEALTHCARE REPORT Q3’20
TELEHEALTH
CLINICAL
TRIALS
HE A LTHCARE Q 3 2020
Telehealth Collection
40
$490
$1,224
$1,571
$2,191
$1,011
$2,093
$1,484
$1,471
$692
$2,035
$1,639
$2,827
87
89
115
92
75
104
110
112
83
136
156
162
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Telehealth deals and dollars set new records
TELEHEALTH DEALS AND DOLLARS
Amount ($M)
Deal Count
Telehealth funding and deal count, Q4’17 – Q3’20
41
Company
Deal Date // Amount
Raised ($M)
Total Disclosed
Funding ($M)
Select Investors
Description
The top 5 deals had 30%+ share of Q3 funding
HIGHLIGHT #1: NEARLY $900M WAS RAISED ACROSS THE 5 LARGEST DEALS
Jul’20 //
$275M
Jul’20 //
$200M
Sep’20 //
$175M
Jul’20 //
$137M
Aug’20 //
$110M
$1,241M
$377M
$281M
$137M
$284M
Kinnevik, Walgreens Boots
Alliance
FirstMark Capital, General
Catalyst, The Chernin Group,
BoxGroup, Initialized Capital
The Carlyle Group
Novo Holdings, Boston Scientific,
Merck Global Health Innovation
Fund, Samsung Catalyst
Meritech Capital Partners, Adams
Street Partners, Greylock
Partners, Casdin Capital
VillageMD is a national provider of value-based primary care
services through traditional free-standing clinics and at-home &
virtual visits.
Ro powers D2C digital health clinics: Roman for men’s health, Rory
for women’s health, and Zero for smoking cessation. Ro Pharmacy
also offers generic medications for $5 per month.
Grand Rounds matches employers and employees to high-quality
healthcare. The company plans to use its latest funding to scale its
clinical navigation and virtual primary care operations nationwide.
Preventice Solutions is an innovative healthcare company focused
on mobile health solutions and remote monitoring services that
connect physicians and patients threatened by cardiac arrhythmias.
Lyra Health provides mental health benefits. Through its digital
platform, employees and dependents can access therapists, mental
health coaches, and personalized medication prescribing.
42
Retail leaned further into telehealth
HIGHLIGHT #2: RETAILERS EYE TELEHEALTH
Instacart partners with Doctor on Demand
August 20, 2020 |
Sam’s Club partners with Seattle startup
98point6 to offer customers telehealth
service
September 22, 2020 |
Kroger gets FDA authorization for at-
home COVID test*
July 1, 2020 |
*The test must be performed under telehealth guidance from a
healthcare professional.
Walgreens Boots Alliance invests in
VillageMD to open 500+ medical clinics,
expand telehealth
July 8, 2020 |
43
CloudMD made 4 acquisitions in Q3’20
HIGHLIGHT #3: CLOUDMD WAS AN ACTIVE ACQUIRER
Snapclarity is an on-demand
digital mental health platform
used by employers, individuals,
therapists, and insurers. In July,
CloudMD acquired it for $3.4M
to expand its suite of enterprise
virtual care solutions.
Re:Function Health Group is a
rehab clinic network in British
Columbia, CA. In August,
CloudMD acquired it to expand
the network of mental,
occupational, and physical
therapists available to its users.
iMD Health is a digital platform
used to engage, inform, and
educate patients. CloudMD
acquired it in September, gaining
access to the 7.5M patients and
10,000 professionals using the
platform.
Benchmark Systems is a cloud-
based practice management,
billing, and telehealth-enabled
EHR provider serving the US
market. In September, CloudMD
acquired a majority stake in the
company.
44
HEALTH PLANS
& BENEFITS
MANAGEMENT
WOMEN’S
HEALTH
AI
MEDICAL
DEVICES
MENTAL
HEALTH
GLOBAL HEALTHCARE REPORT Q3’20
TELEHEALTH
CLINICAL
TRIALS
HE A LTHCARE Q 3 2020
Medical Devices
Collection
45
Medical device companies raised over $5B
MEDICAL DEVICE DEALS AND DOLLARS
$3,007
$3,430
$3,320
$3,855
$2,915
$3,689
$3,377
$3,094
$3,529
$3,269
$4,828
$5,053
422
413
458
440
393
411
420
429
411
369
399
478
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Amount ($M)
Deal Count
Medical device funding and deal count, Q4’17 – Q3’20
46
Robotic surgery deal share spanned all stages
PROCEPT BioRobotics closed a
$77M Series F round, bringing
total funding to $264M. Its
AquaBeam system is an
autonomous surgical robot that
performs prostate resection via
aquablation therapy.
Monteris Medical closed a $9M
Series D – II round, bringing
total funding to $134M. Its
NeuroBlate is a minimally
invasive, MRI-guided, robotic
laser ablation system designed
for use in the brain.
Vicarious Surgical closed a
$13M Series B round, bringing
total funding to $44M. Its VR-
enhanced robotic surgical
system was granted
Breakthrough Designation by
the FDA in 2019.
Singapore-based NDR Medical
Technologies closed a $6M
Series A round to support
development of its computer
vision-enabled robotic needle
positioning system.
HIGHLIGHT #1: ROBOTIC SURGERY COMPANIES RAISED CAPITAL AMID ELECTIVE PROCEDURE DROUGHT
47
Novel neuromodulation devices gained steam
Neurovalens raised $6M to
support R&D related to its non-
invasive neurostimulator, which is
awaiting regulatory review for
treatment of obesity, insomnia,
and anxiety, and which will be
studied for treatment of diabetes
in 2021.
SetPoint Medical published
positive safety and efficacy
data from its first-in-human pilot
study of its miniaturized vagus
nerve stimulation device for
treatment of multidrug-
refractory rheumatoid arthritis.
Spark Biomedical released
promising initial data from a
clinical trial evaluating its
transcutaneous auricular
neurostimulation device in
neonatal opioid withdrawal
syndrome.
Synchron received Breakthrough
Designation from the FDA for its
endovascularly implanted
neuromodulation system, which
is being evaluated as a functional
brain-computer interface for
paralyzed patients.
HIGHLIGHT #2: BIOELECTRONIC INNOVATION DROVE NEW DEVICES AND POTENTIAL APPLICATIONS
48
Medtronic made strategic moves in diabetes
and neurosurgery tech
HIGHLIGHT #3: MEDTRONIC WAS AN ACTIVE INVESTOR AND ACQUIRER
Medtronic acquires Medicrea and its
spinal surgery tech
July 15, 2020 |
Medtronic acquired insulin pen startup
Companion Medical to broaden its
diabetes management tech
August 13, 2020 |
Medtronic invests in Beijing neurosurgical
robots maker Sinovation
July 20, 2020 |
Medtronic investing $20M in Israeli insulin
pump startup Triple Jump
September 23, 2020 |
49
HEALTH PLANS
& BENEFITS
MANAGEMENT
WOMEN’S
HEALTH
AI
MEDICAL
DEVICES
MENTAL
HEALTH
GLOBAL HEALTHCARE REPORT Q3’20
TELEHEALTH
CLINICAL
TRIALS
HE A LTHCARE Q 3 2020
Clinical Trials Collection
50
$432
$373
$459
$322
$181
$363
$431
$932
$467
$503
$398
$1,461
25
34
33
23
19
22
23
27
32
19
25
38
0
5
10
15
20
25
30
35
40
45
50
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
All-time high in drug R&D tech funding in Q3’20
Clinical trials funding and deal count, Q4’17 – Q3’20
CLINICAL TRIALS DEALS AND DOLLARS
Amount ($M)
Deal Count
51
Interest in clinical trials reached a peak in Q3’20
HIGHLIGHT #1: CLINICAL TRIALS GAINED MORE INTEREST AMID COVID-19
July
2020
10,213
Feb
2020
5,528
85%
increase
52
Life science companies are optimizing drug R&D
through novel datasets
HIGHLIGHT #2: GENERATING VALUABLE DATA TO SPEED UP DRUG R&D
Latest Round: Series B (8/11/20) Amount: $123M
Atomwise uses deep learning neural networks to
predict drug candidates. It has had a series of
spinouts focused on specific candidates.
Latest Round: Series B – IV (8/26/20) Amount: $19M
Aetion’s Evidence Platform delivers real-world evidence
(RWE) that life science companies can use to inform
drug treatments.
53
Covid-19 has emphasized the need for
decentralized clinical trials
Latest Round: Series D (7/1/20)
Amount: $45M
Evidation Health offers a digital
research platform with novel real-world
datasets. On 9/2/20, it announced
results from its clinical study with
Omada Health.
HIGHLIGHT #3: ALTERNATIVES TO TRADITIONAL CLINICAL TRIALS GREW
Latest Round: Series D (8/20/20)
Amount: $40M
Science 37 offers an end-to-end
integrated platform for
decentralized trials. On 8/25/20,
it partnered with ERT to deliver
high-quality data during trials.
Latest Round: Private Equity (8/13/20)
Amount: $50M
THREAD offers services for conducting
both hybrid and fully remote trials. It has
expanded to more than 40 countries
globally.
54
Investors backed integrated clinical workflow
solutions
China-based Taimei
Technology raised a $176M
Series F round, co-led by
Tencent, GL Ventures, and YF
Capital. Its TrialOS platform
allows research collaboration
with different stakeholders.
Within3 raised a $100M Growth
Equity round, led by Insight
Partners. Its virtual engagement
platform is used by all 20 top
pharma companies for
improved collaboration and
communication.
Reify Health raised a $30M
Series B round to support the
expansion of its StudyTeam
platform and accelerate
additional solutions. The shared
platform is used by research
sites and sponsors to improve
patient enrollment.
Netherlands-based Castor
EDC raised a $12M Series A –
II round. Its clinical data
platform is used to simplify
trial management. It is being
used for 200+ Covid-19
projects across 33 countries.
HIGHLIGHT #4: CLINICAL WORKFLOW SOLUTIONS TACKLED KEY TRIAL BOTTLENECKS
55
HEALTH PLANS
& BENEFITS
MANAGEMENT
WOMEN’S
HEALTH
AI
MEDICAL
DEVICES
MENTAL
HEALTH
GLOBAL HEALTHCARE REPORT Q3’20
TELEHEALTH
CLINICAL
TRIALS
HE A LTHCARE
Women’s Health Collection
56
$250
$96
$131
$370
$117
$564
$301
$265
$193
$394
$228
$544
37
31
43
47
34
53
45
57
46
45
58
68
0
10
20
30
40
50
60
$-
$100
$200
$300
$400
$500
$600
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Q3’20 funding sees more than 2x increase QoQ
Women’s health funding and deal count, Q4’17 – Q3’20
WOMEN’S HEALTH DEALS AND DOLLARS
Amount ($M)
Deal Count
57
Interest in women’s health hit an all-time high
HIGHLIGHT #1: WOMEN’S HEALTH MARKET GAINED MORE INTEREST
August 2020
58
Growing options for employee fertility benefits
HIGHLIGHT #2: FERTILITY BENEFITS GAINED MORE ATTENTION
Latest Round: Series B (7/8/20)
Amount: $32M
Kindbody offers virtual and in-person fertility
services. It intends to use its latest funding to grow
its employer benefits solution and expand in the US.
Latest Round: Series B (8/18/20)
Amount: $24M
Carrot Fertility offers customizable fertility benefits
coverage for employers. It plans to use its funding to
expand its telehealth services and its global footprint.
59
Rethinking mental health specifically for women
HIGHLIGHT #3: MENTAL HEALTH FOR WOMEN
Latest Round: Series B (8/25/20) Amount: $7.6M
Ovia Health develops AI-enabled mobile apps for
fertility, pregnancy, and parenting. In 2019, its clinical
team used its digital screener to find an incidence rate
of perinatal depression ~3x the rate cited by the CDC.
Latest Round: Series A (7/14/20) Amount: $6M
Real offers a monthly membership to in-studio and
digital mental health services. It aims to revamp
the therapy experience through an affordable,
accessible platform.
60
Women’s health gained more corporate interest in Q3’20
HIGHLIGHT #4: PUBLIC COMPANIES SHOWED MORE INTEREST
Mentions of “women’s health” on earnings calls by quarter, Q3’15 – Q3’20
7/1/20-9/30/20
61
Q3’20 saw 2 major acquisitions
HIGHLIGHT #4: PUBLIC COMPANIES SHOWED MORE INTEREST
$80M
$425M
Up to an additional $450M
in milestone payments
KaNDy Therapeutics
develops NT-814, a non-
hormonal treatment for
menopause symptoms.
Acessa Health develops a
uterine fibroid treatment
using laparoscopic
radiofrequency ablation.
62
HEALTH PLANS
& BENEFITS
MANAGEMENT
WOMEN’S
HEALTH
AI
MEDICAL
DEVICES
MENTAL
HEALTH
GLOBAL HEALTHCARE REPORT Q3’20
TELEHEALTH
CLINICAL
TRIALS
HE A LTHCARE Q 3 2020
Mental Health & Wellness
Collection
63
$78
$207
$264
$131
$127
$221
$534
$229
$115
$579
$496
$417
25
37
33
30
24
46
44
54
41
46
59
68
-1
9
19
29
39
49
59
69
$-
$100
$200
$300
$400
$500
$600
$700
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Q3’20 funding slowed but deal volume increased
Mental health funding and deal count, Q4’17 – Q3’20
MENTAL HEALTH DEALS AND DOLLARS
Amount ($M)
Deal Count
64
A growing number of services for different use cases
HIGHLIGHT #1: MENTAL HEALTH IS BECOMING MORE DIFFERENTIATED
Latest Round: Series A (8/19/20) Amount: $20M
Brightline offers pediatric behavioral health
solutions, including therapy, evaluation and
medication support, speech-language therapy, and
coaching for parents.
Latest Round: Series A (7/8/20) Amount: $9M
Ahead provides both in-person and virtual
psychiatric services along with medication delivery.
It currently focuses on ADHD, depression, and
anxiety. Its Series A round was led by Truepill.
PEDIATRIC HEALTH
PSYCHIATRIC HEALTH
65
Employer benefits drew investor interest
HIGHLIGHT #2: MENTAL HEALTH BENEFITS CONTINUED TO GAIN INTEREST
Latest Round: Series D (8/25/20) Amount: $110M
Lyra Health provides employees and their
dependents with therapy, coaching, and medication
prescribing services. Its platform covers 1M+
members.
Latest Round: Series D (8/6/20) Amount: $50M
Ginger offers psychiatry, therapy, and coaching
services for employers and health plans. It has
operations in 23 countries.
66
BehaVR & Sumitomo Dainippon
Pharma Partner To Advance Virtual
Reality For Social Anxiety Disorder
8/5/20
Mental & behavioral health is a leading category in digital
therapeutics
Swedish Pharma Company Orexo Rolls
Out Digital Therapeutics For
Depression, Alcohol Use Disorder
7/13/20
Quartet Taps SilverCloud Health
To Broaden Access To Digital
Mental Health Services
8/4/20
CVS Adds Another Big Health Product
To Its Point Solutions Management
Program
7/29/20
HIGHLIGHT #3: MENTAL HEALTH SOLUTIONS IN DIGITAL THERAPEUTICS
67
HEALTH PLANS
& BENEFITS
MANAGEMENT
WOMEN’S
HEALTH
AI
MEDICAL
DEVICES
MENTAL
HEALTH
GLOBAL HEALTHCARE REPORT Q3’20
TELEHEALTH
CLINICAL
TRIALS
HE A LTHCARE Q 3 2020
Health Plans & Benefits
Management Collection
68
$202
$495
$252
$874
$701
$834
$619
$429
$1,070
$567
$525
$1,465
17
23
27
22
13
24
25
26
27
22
24
29
0
5
10
15
20
25
30
35
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Funding reached nearly $1.5B in Q3’20
Health plans & benefits management funding and deal count, Q4’17 – Q3’20
HEALTH PLANS & BENEFITS MANAGEMENT DEALS AND DOLLARS
Amount ($M)
Deal Count
69
Company
Deal Date // Amount
Raised ($M)
Total Disclosed
Funding ($M)
Select Investors
Description
5 mega-rounds totaled close to $1.2B
HIGHLIGHT #1: TOP 5 HEALTH PLANS & BENEFITS MANAGEMENT DEALS OF Q3’20
Sep’20 //
$500M
Aug’20 //
$230M
Sep’20 //
$175M
Aug’20 //
$145M
Aug’20 //
$110M
$1,575M
$480M
$281M
$197M
$284M
Bessemer Venture Partners,
Blackstone, Flare Capital
Partners, GE Ventures
BlueRun Ventures, Sinovation
Ventures, Swiss Reinsurance
Company, Tencent Holdings
David Ebersman, Greylock
Partners, Harrison Metal, The
Carlyle Group, Venrock
Bedrock Capital, Founders Fund,
Initialized Capital, Kleiner Perkins,
SV Angel, Y Combinator
Breyer Capital, Casdin Capital,
Castlight Health, Greylock
Partners, Venrock
Bright Health is an online insurance marketplace that offers
affordable Individual & Family and Medicare Advantage health
plans.
Waterdrop is a health insurance crowdfunding platform that allows
people to contribute money when they are healthy and then access
funds to pay for medical bills if they become ill.
Grand Rounds offers a virtual platform that helps employees
navigate their health benefits and get access to high-quality
medical care.
Rippling is a benefits administration platform that helps manage a
range of employer operations, including health benefits.
Lyra Health provides mental health employee benefits. The
company provides virtual and in-person services for patients with
mild to severe mental health needs.
Note: Mega-rounds are rounds worth $100M+.
70
Payments & benefits companies formed strategic
partnerships
HIGHLIGHT #2: NEW PARTNERSHIPS SOUGHT TO IMPROVE PRICE TRANSPARENCY & ACCESS
VisitPay partners with
Teladoc, NTT Data, Enli
and R1 RCM to create a
digital front door for
healthcare
July 20, 2020 |
Cedar partners with
ApolloMD to enable
improved online billing
experience for patients
September 17, 2020 |
Lively expands HSA
investment product
through strategic
partnership with
Devenir
August 5, 2020 |
71
Early-stage startups offer limited benefits plans
HIGHLIGHT #3: HEALTH PLANS ARE TARGETING SUPPLEMENTAL MEDICAL COVERAGE
Sidecar Health provides personalized and affordable
health plans that supplement traditional medical
insurance.
Latest Round: Seed VC – II (7/23/20) Amount: $20M
Brella offers a supplemental health insurance plan that
pays cash if a member is diagnosed with any of the
13,000+ covered conditions.
Latest Round: Seed VC – II (8/10/20) Amount: $1.5M
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#AhaCBI
Appendix
73
The most active healthcare VCs in Q3'20
By unique investments in healthcare companies (new or follow-on)
Rank
Investor
HQ Country
Q3'20 Investments
1
2
2
2
5
5
Note: Excludes incubators/accelerators such as Y Combinator (29 deals) and Techstars (19).
74
The most active digital health VCs in Q3'20
By unique investments in digital health companies (new or follow-on)
Rank
Investor
HQ Country
Q3'20 Investments
1
1
1
1
1
Note: Excludes incubators/accelerators like Techstars (13 deals) and Y Combinator (11).
75
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 a company 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
30.
― 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.