1
State Of Healthcare Report:
Investment & Sector Trends To Watch
2
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Contents
7
Summary
9
Market Drivers
16
Investment Trends
28
Sector Highlights
74
Appendix
6
WOMEN’S HEALTH
Companies focused
specifically on providing
healthcare products and
services to women
Icon
here
Icon
here
Icon
here
OMICS
Companies involved in the
capture, sequencing, and/or
analysis of genomic,
transcriptomic, proteomic,
and/or metabolomic data
CYBERSECURITY
Companies protecting
healthcare providers from
digital threats (e.g. malware,
insider abuse, phishing, etc.)
MEDICAL DEVICES
Companies developing medical
devices that aid in the diagnosis,
cure, mitigation, treatment,
monitoring, or prevention of
disease
Icon
here
AI
Companies selling AI SaaS to
healthcare clients or using AI
to develop products for the
healthcare market
TELEHEALTH
Companies using technology
to remotely deliver clinical
health services to patients
2020 State Of Healthcare
WHAT THIS REPORT COVERS
MENTAL HEALTH
Companies applying
technology to problems of
emotional, psychological, and
social well-being
7
Summary of findings
Overall healthcare industry trends
Note: This report focuses on equity rounds to private healthcare companies. All data is sourced from CB Insights.
Global digital health funding jumped by 45% YoY:
Equity funding to digital health companies reached
$26.5B in 2020 – an all-time high – while the annual
deal count increased by 1%. However, both the funding
and deal count for Q4’20 declined QoQ, by 2% and 21%
respectively.
Q4’20 saw a spree of digital health exits: There were a
number of M&A activities as companies looked to
consolidate their offerings. Meanwhile, companies
such as Butterfly Network and Hims & Hers went public
via SPACs as opposed to traditional IPOs.
Global healthcare funding hit a new record in 2020: A
total of $80.6B in equity funding was raised across
5.5K+ deals. North America, Asia, and Europe all saw a
boost in funding year-over-year (YoY). There were 187
healthcare mega-rounds ($100M+) in 2020, a new
record.
Funding grew for the third consecutive quarter:
Despite the impact of the Covid-19 pandemic, funding
trended up each quarter since Q1’20. However, Q4’20
deal activity declined by 13% quarter-over-quarter
(QoQ).
Early-stage deal share dropped off in Q4’20: The
proportion of healthcare deals going to early-stage
companies steadily declined since Q3’19. This trend
continued in Q4’20 with mid- and late-stage deals
increasing their share.
8
Summary of findings
Healthcare sector-specific trends
Note: This report focuses on equity rounds to private healthcare companies. All data is sourced from CB Insights.
AI: Q4’20 saw a new healthcare AI funding record of
nearly $2.3B, largely propelled by mega-rounds. However,
deals dropped by about 19% from the previous quarter’s
record.
Telehealth: Global telehealth startups raised a record
$3.3B in funding in Q4’20. While deals declined 32%
quarter-over-quarter, Q4’20 deals still represented a 24%
year-over-year increase from Q4’19.
Medical devices: Medical device startups raised nearly
$6B in Q4’20, seeing a QoQ boost in funding even as deals
declined by 25%. Exit activity reached its highest point in
more than 3 years with a total of 64 exits.
Mental health: Q4’20 funding to mental health companies
increased by 30% while deal count fell quarter-over-
quarter. Overall, 2020 saw a record high of $2B in equity
funding, with early-stage deals continuing to dominate
deal share.
Women’s health: Funding to women’s health companies
reached $521M in Q4’20 — a slight QoQ decline of less
than 1%. The deal count fell by 14% over the same period.
However, 2020 saw an all-time high in deal activity with
239 deals, 62% of which went to early-stage companies.
Omics: Omics funding hit a record high in Q4’20 with
$2.2B invested despite a decline in deals. The space is
also showing signs of maturity, with early-stage deal
share continuing a gradual decline.
Cybersecurity: Q4’20 ranked as the second-biggest
quarter for funding to healthcare cybersecurity
companies over the past 3 years. While deals fell to a
recent low of 13 in Q4, nearly half were $100M+ mega-
rounds.
9
Healthcare
Market Drivers
10
Covid-19 continues to spur innovation
The Covid-19 pandemic placed a spotlight on inefficient practices within traditional care delivery.
Technology became necessary for some patients to access care, thereby relaxing industry barriers,
driving new collaborations, and creating market opportunities.
MARKET DRIVERS
Sources: MassDevice, DTRA
Earnings calls mentions, healthcare AND ( digitization OR digital
OR automation ), 2008 — 2020
Decentralized Trials & Research Alliance
(DTRA) Launches to Democratize and
Accelerate Clinical Trials
December 10, 2020
FDA authorized more than 300 Covid-19
tests and collection kits in 2020
January 5, 2020
11
Data becomes essential for healthcare stakeholders
Sources: CB Insights, EHR Intelligence
MARKET DRIVERS
Across the healthcare industry, processes are becoming more digitized to streamline operations, drive
prices down, and enhance treatments. Technological advancements and data-dependent business
models are also driving market activities.
CMS Proposes Rule to Streamline Prior
Authorization, Data Exchange
December 14, 2020
PRECISION MEDICINE
$130M Series D
(12/10/20)
$225.5M Series G
(12/1/20)
WORKFLOW AUTOMATION
$200M Series G – II
(12/10/20)
$110M Series F
(10/1/20)
“As Covid continues to disrupt global healthcare, it’s also
underscoring the value of healthcare interoperability,
interconnected information systems, and access to
timely population-level data and analysis.”
Brent Shafer, Cerner
Earnings call, October 29, 2020
12
Reliance on data puts spotlight on cybersecurity
MARKET DRIVERS
Reported data breaches in the US healthcare sector reportedly rose nearly 3x between Q4’19 and Q4’20.
Malicious actors targeted the industry as it faced heightened demand for in-person and virtual care
during the Covid-19 pandemic.
Source: US Department of Health and Human Services, Bloomberg
“UNC1878, an Eastern
European financially
motivated threat actor, is
deliberately targeting and
disrupting US hospitals,
forcing them to divert
patients to other
healthcare providers.”
Charles Carmakal
Strategic Services CTO,
FireEye
30
41
45
56
104
117
148
154
0
40
80
120
160
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Q4'20
Number of data breaches affecting 500 or more individuals
13
Consumerization of healthcare gains momentum
MARKET DRIVERS
Consumer-centric services aim to make it easier for patients to navigate healthcare. They emphasize
traits such as ease of use, price transparency, and personalization. Covid-19 has further underscored
this growing trend along with the rising prevalence of costly chronic conditions and physician
shortages.
“We are accelerating elements of our
strategy with innovative healthcare
offerings that address the evolving
consumer landscape providing both
personalized and connected care that
deliver better health outcomes.”
Larry Merlo, CVS Health CEO
Earnings call, November 6, 2020
$65M Series D
(12/2/20)
BEHAVIORAL &
LIFESTYLE COACHING
$175M Series D
(12/3/20)
AT-HOME TESTS
REMOTE PATIENT
MONITORING
$65M Series E
(11/16/20)
SYMPTOM CHECKING &
TRIAGE
$100M Convertible
Note (12/17/20)
14
The aging US population is creating market opportunities
MARKET DRIVERS
Source: CB Insights, PRB
News mentions of “senior care” or “elder care,” 2016 — 2020
ACCESS TO CARE FROM HOME
The number of Americans aged 65+ is projected to almost double from 52M in 2018 to 95M by 2060.
From in-home monitoring to primary care services, tech-enabled solutions for this demographic could
improve general wellbeing, prevent hospital readmissions, and reduce utilization of healthcare services.
MEDICARE PROVIDERS
$40.4M financing
(11/4/20)
$140M Series F round (12/17/20)
Filed for an IPO (12/21/20)
Went public via a SPAC
(1/8/21)
Launched Papa Health, a
virtual care platform
(12/15/20)
$18M Series A round
(10/19/20)
15
Big tech ramps up healthcare initiatives in Q4’20
MARKET DRIVERS
• Products: Received FDA clearance for an updated version of its ECG feature (A-Fib with high heart rate); launched
its fitness platform Apple Fitness+
• Partnership: Apple Fitness+ platform provided for free to UnitedHealthcare Motion well-being program members
• Products: Launched Microsoft Cloud for Healthcare
• Partnerships: Announced partnership with Sensyne Health to develop clinical AI and health cloud capabilities;
launched Covid-19 vaccine management platform with Accenture, Avanade, EY, and Mazik Global
•
Investments: Invested in AI platforms Wysa (chatbot) and Tempus (real-world evidence); GV’s investments include
Olive and Nym, which offer AI-driven services for provider workflows
• Products: Launched Google Health Studies, a mobile app for clinical research; Google Cloud launched Healthcare
Interoperability Readiness Program for healthcare organizations; Google Cloud unveiled 2 AI tools to analyze
unstructured medical text
• Partnerships: Google Cloud announced a 6-year partnership with Highmark Health; partnership with US Department
of Health and Human Services (HHS) for a pilot program to help patients plan for future medical appointments
• Products: Launched Amazon Pharmacy (pharmacy service for Prime members), Amazon HealthLake (data
management service), and made its Amazon Halo wearable device available to the general public; opened 4 more
primary care clinics for its employees with Crossover Health
16
Healthcare
Investment
Trends
17
Funding reached a new high of $80.6B in 2020
Annual global healthcare funding and deal count, 2016 – 2020
HEALTHCARE INVESTMENT TRENDS
# Of Deals
Total Funding ($M)
$34,361
$42,301
$61,410
$57,300
$80,612
4140
4693
5349
5450
5523
0
1000
2000
3000
4000
5000
6000
7000
$-
$20,000
$40,000
$60,000
$80,000
$100,000
2016
2017
2018
2019
2020
18
Funding reached new heights while deals slumped
Quarterly global healthcare funding and deal count, Q1’18 – Q4’20
HEALTHCARE INVESTMENT TRENDS
$14,012
$17,447
$17,971
$11,980
$14,195
$14,326
$13,549
$15,230
$14,896
$18,674
$22,179
$24,864
1279
1445
1382
1243
1374
1410
1359
1307
1259
1319
1572
1373
500
700
900
1100
1300
1500
1700
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Q4'20
# Of Deals
Total Funding ($M)
19
Asia saw a 70% jump in healthcare funding in 2020
Note: “Other” includes Africa, South America, and Australia.
HEALTHCARE INVESTMENT TRENDS
Annual global healthcare funding ($M) by continent, 2016 – 2020
$21,781
$28,578
$36,789
$35,644
$49,060
$8,665
$8,446
$18,383
$13,376
$22,698
$3,614
$4,982
$6,032
$7,931
$8,567
$300
$294
$206
$350
$288
$-
$20,000
$40,000
$60,000
$80,000
2016
2017
2018
2019
2020
Other
Europe
North America
Asia
20
Since Q1’20, funding trended up around the world
Note: “Other” includes Africa, South America, and Australia.
HEALTHCARE INVESTMENT TRENDS
Quarterly global healthcare funding ($M) by continent, Q1’18 – Q4'20
$8,716
$9,542
$10,067
$8,465
$9,402
$8,888
$8,400
$8,954
$10,820
$10,925
$13,154
$14,161
$3,853
$6,045
$6,321
$2,163
$3,081
$3,924
$2,202
$4,169
$2,546
$5,419
$6,633
$8,100
$1,393
$1,782
$1,553
$1,303
$1,649
$1,355
$2,887
$2,040
$1,470
$2,233
$2,346
$2,518
$50
$78
$30
$48
$63
$160
$59
$68
$61
$97
$45
$85
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Q4'20
Other
Europe
North America
Asia
21
Mega-rounds continued to rise throughout the year
Note: Mega-rounds are rounds worth $100M+.
HEALTHCARE INVESTMENT TRENDS
Quarterly healthcare mega-round deal count by continent, Q1’18 – Q4'20
Europe
Asia
North America
13
17
19
13
15
15
16
8
27
24
32
34
5
12
19
4
6
9
3
10
5
12
17
25
2
3
2
2
5
4
2
1
2
6
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Q4'20
22
54%
54%
51%
48%
52%
51%
55%
52%
49%
47%
47%
43%
13%
15%
14%
15%
14%
15%
15%
15%
17%
17%
17%
18%
8%
7%
9%
9%
7%
8%
6%
8%
7%
6%
9%
11%
25%
24%
26%
28%
27%
26%
25%
25%
27%
29%
27%
28%
0%
50%
100%
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Q4'20
Early-stage deals dropped off in Q4’20
Percentage share of global healthcare deals by stage, Q1’18 – Q4’20
Note: “Early-stage” includes convertible note, angel, seed, and Series A rounds. “Mid-stage” includes Series B and Series C rounds. “Late-stage”
includes Series D, Series E+, growth equity, and private equity rounds. “Other” includes unattributed and corporate minority rounds.
HEALTHCARE INVESTMENT TRENDS
Other
Late-stage
Early-stage
Mid-stage
23
Company
Deal date //
Amount raised ($M)
Total disclosed
funding ($M)
Select investors
Description
SPACs played a major role in digital health exits in Q4’20
HEALTHCARE INVESTMENT TRENDS
11/20/2020
12/8/2020
10/1/2020
12/11/2020
10/5/2020
$354M
$1,830M
$197M
$247M
$107M
Butterfly Network develops AI-enabled diagnostic and
therapeutic imaging devices.
Acquirer: Longview Acquisition Corp.
China-based JD Health is a platform for online pharmacy,
telemedicine, and other consumer health services.
Hims & Hers provides telehealth services along with
wellness products for consumers.
Acquirer: Oaktree Acquisition
AbCellera Biologics provides a single-cell platform for
therapeutic antibody discovery for biotech and pharma
companies.
Augmedix provides remote medical documentation
services for clinicians.
Acquirer: Malo Holdings Corp.
Exit date
Total disclosed
funding ($M)
Company
Exit type
IPO
SPAC merger
SPAC merger
SPAC merger
IPO
24
Select digital health M&A deals of Q4’20
HEALTHCARE INVESTMENT TRENDS
Canada-based EHR platform
PointClickCare acquired
Collective Medical, which helps
providers and payers
collaborate, for $650M.
December 7, 2020
Patient access platform Kyruus
acquired HealthSparq – part of
Cambia Health Solutions – to
create a unified platform
connecting payers and
providers.
December 17, 2020
Robotic process automation
company Olive acquired
Verata Health, which offers
AI-based products to
improve the prior
authorization process.
December 3, 2020
Centene acquired Apixio,
which uses AI tools to
extract and analyzes clinical
data for cost-related insights
and health outcomes.
November 9, 2020
Telehealth company Ro acquired
Workpath, which develops an API
system for providers to offer on-
demand, in-home care services.
December 8, 2020
Home care company Signify
Health acquired PatientBlox – a
blockchain platform that facilitates
value-based payments.
November 23, 2020
Back-end operations
Bridging gaps between providers & payers
In-home care services
25
Company
Deal date //
Amount raised ($M)
Total disclosed
funding ($M)
Select investors
Description
Top 5 funding rounds of Q4’20
HEALTHCARE INVESTMENT TRENDS
Dec’20 //
$700M
Nov’20 //
$800M
Dec’20 //
$500M
Dec’20 //
$515M
Dec’20 //
$350M
$2,500M
$850M
$672M
$530M
$1,386M
Alphabet, Silver Lake, Temasek
ARCH Venture Partners, New
Enterprise Associates, Google
Ventures, 8VC
Tencent Holdings, Trustbridge
Partners, Hillhouse Capital
Management
Sino Biopharmaceutical
Undisclosed Investors
Verily Life Sciences is a subsidiary of Alphabet and
develops tools and devices for disease management.
RESILIENCE develops manufacturing technology solutions for
biopharmaceuticals such as cell and gene therapies and vaccines.
China-based Dxy.cn offers a healthcare information sharing
platform for its registered users.
China-based Sinovac Research & Development, a subsidiary
of Sinovac Biotech, develops infectious disease vaccines.
China-based We Doctor provides online and mobile healthcare
solutions.
26
Company
Deal date //
Amount raised ($M)
Total disclosed
funding ($M)
Select investors
Description
New healthcare unicorns ($1B+ valuation) in Q4’20
HEALTHCARE INVESTMENT TRENDS
Dec’20 //
$226M
Nov’20 //
$250M
Dec’20 //
$160M
Dec’20 //
$175M
Dec’20 //
$65M
$459M
$476M
$299M
$231M
$244M
Tiger Global Management, General
Catalyst, Sequoia Capital, Google
Ventures
The Carlyle Group
General Catalyst, Wellington
Management, Redpoint Ventures,
Kinnevik
Foresite Capital, Lux Capital,
BlackRock, Morningside Venture
Partners
Sequoia Capital, Caffeinated Capital
Olive develops a robotic process automation platform for
automating healthcare administrative processes.
Valuation: $1.5B
Pharmapacks offers an e-commerce platform for health, personal
care, and beauty products.
Valuation: $1.1B
Cityblock Health offers healthcare services for low-income
patients and those with complex medical needs.
Valuation: $1B
Everlywell provides a digital platform for various at-home
healthcare tests.
Valuation: $1.2B
Virta Health develops treatments for type 2 diabetes and other
metabolic conditions without medications or surgery.
Valuation: $1.1B
27
46 HEALTHCARE UNICORNS
Valued in aggregate at
$110 BILLION
Globally there are
28
Q4’20
Healthcare
Sector
Highlights
29
WOMEN’S HEALTH
Companies focused
specifically on providing
healthcare products and
services to women
Icon
here
Icon
here
Icon
here
OMICS
Companies involved in the
capture, sequencing, and/or
analysis of genomic,
transcriptomic, proteomic,
and/or metabolomic data
CYBERSECURITY
Companies protecting
healthcare providers from
digital threats (e.g. malware,
insider abuse, phishing, etc.)
MEDICAL DEVICES
Companies developing medical
devices that aid in the diagnosis,
cure, mitigation, treatment,
monitoring, or prevention of
disease
Icon
here
AI
Companies selling AI SaaS to
healthcare clients or using AI
to develop products for the
healthcare market
TELEHEALTH
Companies using technology
to remotely deliver clinical
health services to patients
2020 State Of Healthcare
WHAT THIS REPORT COVERS
MENTAL HEALTH
Companies applying
technology to problems of
emotional, psychological, and
social well-being
30
WOMEN’S HEALTH
Companies focused
specifically on providing
healthcare products and
services to women
Icon
here
Icon
here
Icon
here
OMICS
Companies involved in the
capture, sequencing, and/or
analysis of genomic,
transcriptomic, proteomic,
and/or metabolomic data
CYBERSECURITY
Companies protecting
healthcare providers from
digital threats (e.g. malware,
insider abuse, phishing, etc.)
MEDICAL DEVICES
Companies developing medical
devices that aid in the diagnosis,
cure, mitigation, treatment,
monitoring, or prevention of
disease
Icon
here
AI
Companies selling AI SaaS to
healthcare clients or using AI
to develop products for the
healthcare market
TELEHEALTH
Companies using technology
to remotely deliver clinical
health services to patients
2020 State Of Healthcare
WHAT THIS REPORT COVERS
MENTAL HEALTH
Companies applying
technology to problems of
emotional, psychological, and
social well-being
31
Healthcare AI startup funding reached record high
ARTIFICIAL INTELLIGENCE
Quarterly global healthcare AI funding and deal count, Q1’18 – Q4’20
$767
$925
$928
$624
$628
$1,081
$1,658
$762
$1,031
$1,198
$2,126
$2,272
75
99
71
66
92
92
123
86
85
87
124
101
0
20
40
60
80
100
120
140
$0
$500
$1,000
$1,500
$2,000
$2,500
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Q4'20
Total Funding ($M)
# Of Deals
32
Exec discussion of healthcare AI shoots up
ARTIFICIAL INTELLIGENCE
Earnings calls mentions of (“artificial intelligence” or “machine learning”) and “healthcare,” Q1’16 – Q4’20
33
Company
Deal date //
Amount raised ($M)
Total disclosed
funding ($M)
Select investors
Description
Dec’20 //
$200M
Dec’20 //
$130M
Oct’20 //
$110M
Dec’20 //
$100M
$1070M
$224M
$251M
$735M
Franklin Templeton, Novo Holdings,
Google, Baillie Gifford & Co., T. Rowe
Price
GS Growth, Insight Partners
aMoon Partners, Generation Investment
Management, Swisscom Ventures,
Hitachi Ventures, Credit Suisse
Entrepreneur Capital
Vostok New Ventures
Tempus is using machine learning to build and analyze a library of
clinical and molecular genomic data to enable personalized treatment
in oncology.
LeanTaas uses machine learning to match open resources, such as
operating rooms, patient beds, available doctors, and more, with
patients that need them most.
SOPHiA is a precision medicine startup using machine learning to
analyze genomic data and determine optimal treatments for diseases.
Telehealth startup Babylon Health uses AI chatbots to screen patient
symptoms and offer medical care via its platform.
Top AI deals emphasize genomics and provider workflows
ARTIFICIAL INTELLIGENCE
Dec’20 //
$226M
$459M
Google Ventures, Tiger Global
Management, Sequoia Capital, General
Catalyst, Dragoneer Investment Group
Olive uses AI-powered robotic process automation to reduce manual
provider workflows, such as claims processing or prior authorization
management.
34
Google bets on AI in revenue cycle management
ARTIFICIAL INTELLIGENCE
NYM
OLIVE
Series A (10/12/2020)
$16.5M
Latest round:
Amount:
Nym is developing machine learning software to
automate medical coding in the hospital billing
process. The startup uses natural language
processing to understand unstructured physician
notes and automatically assign billing codes to
patient symptoms and procedures. Google’s GV led
this Series A round.
About:
Series G (12/1/2020)
$225.5M
Latest round:
Amount:
Olive uses artificial intelligence and robotic process
automation to identify and conduct repetitive tasks in
the revenue cycle. The startup is building products
across revenue cycle management, from claims
processing to prior authorization management.
Google’s GV participated in this Series G financing.
About:
35
Two healthcare AI unicorns exited
ARTIFICIAL INTELLIGENCE
BUTTERFLY NETWORK
ABCELLERA BIOLOGICS
Reverse Merger (11/20/20)
$1,500M
Latest round:
Exit Valuation:
Butterfly Networks develops portable, handheld
ultrasound devices — intended for medical and
veterinary purposes — that plug into smartphones.
The company uses artificial intelligence to help users
take accurate ultrasounds and interpret images.
About:
IPO (12/11/20)
$4,651M
Latest round:
Exit Valuation:
AbCellera Biologics uses its machine learning
platform to analyze naturally occurring antibodies to
support drug development. The startup provides its
SaaS product to pharmaceutical partners rather than
developing its own internal pipeline.
About:
36
WOMEN’S HEALTH
Companies focused
specifically on providing
healthcare products and
services to women
Icon
here
Icon
here
Icon
here
OMICS
Companies involved in the
capture, sequencing, and/or
analysis of genomic,
transcriptomic, proteomic,
and/or metabolomic data
CYBERSECURITY
Companies protecting
healthcare providers from
digital threats (e.g. malware,
insider abuse, phishing, etc.)
MEDICAL DEVICES
Companies developing medical
devices that aid in the diagnosis,
cure, mitigation, treatment,
monitoring, or prevention of
disease
Icon
here
AI
Companies selling AI SaaS to
healthcare clients or using AI
to develop products for the
healthcare market
TELEHEALTH
Companies using technology
to remotely deliver clinical
health services to patients
2020 State Of Healthcare
WHAT THIS REPORT COVERS
MENTAL HEALTH
Companies applying
technology to problems of
emotional, psychological, and
social well-being
37
Telehealth startups raised a record $3.3B in Q4’20
TELEHEALTH
Quarterly global telehealth funding and deal count, Q1’18 – Q4’20
Total Funding ($M)
# Of Deals
$1,239
$1,586
$2,349
$994
$2,161
$1,624
$1,484
$715
$2,148
$1,810
$2,862
$3,302
97
123
97
75
113
118
114
90
139
160
165
112
0
100
200
$-
$1,000
$2,000
$3,000
$4,000
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Q4'20
38
Telehealth remains highly topical vs. pre-Covid-19
TELEHEALTH
Earnings calls mentions of telehealth, Q1’16 – Q4’20
Source: CB Insights
39
Several telehealth startups made acquisitions to
enhance and expand their offerings
TELEHEALTH
Talkspace announces acquisition of
relationship counseling app Lasting
December 12, 2020 |
Ro acquires Workpath to offer in-home
care services nationwide
December 8, 2020 |
Livi acquires practice communication
service MJog
October 23, 2020 |
HealthHero acquires digital triage
platform Doctorlink
December 3, 2020 |
40
Early-stage deal share hit its lowest point in 3+ years
Note: Early-stage deals include angel, seed, convertible note, and Series A rounds; mid-stage deals include Series B and Series C rounds; late-stage
deals include Series D+, growth equity, and private equity rounds; and other deals include unattributed and corporate minority investments.
TELEHEALTH
Quarterly global telehealth deal share by stage, Q1’18 – Q4’20
66%
61%
60%
56%
65%
54%
67%
56%
54%
60%
52%
51%
14%
15%
15%
19%
17%
24%
20%
20%
27%
19%
19%
21%
9%
12%
5%
9%
5%
9%
9%
5%
4%
12%
13%
10%
11%
20%
16%
12%
13%
11%
16%
14%
17%
16%
15%
0%
50%
100%
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Q4'20
Other
Late-stage
Mid-stage
Early-stage
41
Text-based primary care rivals raised late-stage rounds
TELEHEALTH
K HEALTH
98POINT6
Series D (11/18/2020)
$42M
Latest Round:
Amount:
K Health offers a text-based primary care app
where users interact with an AI-based chatbot (for
free) to see how users with similar symptoms
have been diagnosed and then, if necessary, can
chat with a physician for a fee. The company says
it has 4M users in the US.
About:
Series E (10/15/2020)
$118M
Latest Round:
Amount:
98point6 is a healthcare technology company that
works with board-certified physicians to deliver
private, text-based diagnosis and treatment via a
mobile app. The company says it now has more
than 240 commercial partnerships, accounting for
3M members.
About:
42
Business relationships continued to gain
momentum in the remote monitoring space
Note: RPM (remote patient monitoring)
TELEHEALTH
Babyscripts forms commercial
partnership with Roche to develop RPM
programs for pregnancy
October 21, 2020 |
Biofourmis, Brigham & Women’s Hospital
co-develop tech solution to enable home
hospital care
December 3, 2020 |
Amwell builds on partnership with remote
medical exam startup TytoCare
October 1, 2020 |
Fresenius Medical Care partners with
Livongo to empower people with chronic
kidney disease
October 7, 2020 |
43
WOMEN’S HEALTH
Companies focused
specifically on providing
healthcare products and
services to women
Icon
here
Icon
here
Icon
here
OMICS
Companies involved in the
capture, sequencing, and/or
analysis of genomic,
transcriptomic, proteomic,
and/or metabolomic data
CYBERSECURITY
Companies protecting
healthcare providers from
digital threats (e.g. malware,
insider abuse, phishing, etc.)
MEDICAL DEVICES
Companies developing medical
devices that aid in the diagnosis,
cure, mitigation, treatment,
monitoring, or prevention of
disease
Icon
here
AI
Companies selling AI SaaS to
healthcare clients or using AI
to develop products for the
healthcare market
TELEHEALTH
Companies using technology
to remotely deliver clinical
health services to patients
2020 State Of Healthcare
WHAT THIS REPORT COVERS
MENTAL HEALTH
Companies applying
technology to problems of
emotional, psychological, and
social well-being
44
Medical device startups raised nearly $6B in Q4’20
MEDICAL DEVICES
Quarterly global medical device funding and deal count, Q1’18 – Q4’20
Total Funding ($M)
# Of Deals
$3,520
$4,512
$4,780
$2,835
$3,678
$3,325
$2,529
$3,513
$3,301
$4,953
$5,236
$5,962
415
470
438
399
414
430
436
414
382
429
501
378
0
100
200
300
400
500
600
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Q4'20
45
Exit activity reached its highest point in 3+ years
MEDICAL DEVICES
Number of medical device exits by transaction type, Q1’18 – Q4’20
27
32
35
29
28
29
32
23
40
43
45
48
6
7
8
12
7
8
15
11
3
13
15
16
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Q4'20
M&A
IPO
46
Digital therapeutics gained FDA approvals
MEDICAL DEVICES
IRRITIBLE BOWEL SYNDROME (IBS)
NIGHTMARE DISORDER
Series A (4/21/2020)
N/A
Latest round:
Amount:
Mahana Therapeutics’ “Parallel” is an FDA-approved,
prescription-only digital therapeutic for IBS. The 3-
month digital program teaches adults cognitive-
behavioral therapy skills to help improve gut-brain
communication and reduce the severity of IBS
symptoms.
About:
Series A (5/2/2019)
$0.3M
Latest round:
Amount:
NightWare is an FDA-approved, prescription-only
digital therapeutic application (via Apple Watch) that
helps people with traumatic nightmares get better
sleep. It uses machine learning to detect, track, and
rouse patients from their nightmares without
awakening them. The data can also be viewed
remotely by care providers.
About:
47
Medical 3D printing startups raised early-stage funds
PATIENT-SPECIFIC
SPINAL IMPLANTS
Series A (12/16/2020)
$10M
Latest round:
Amount:
Carlsmed uses predictive
analytics to create patient-
specific surgical plans and
3D-printed spine implants.
The company’s devices are
intended to help improve
outcomes, shorten operating
times, and reduce
reoperation rates.
About:
3D “MEDIFACTURING”
Series A (12/8/2020)
$16M
Latest round:
Amount:
PrinterPrezz develops
medical devices for the
orthopedic industry using 3D
printing and
nanotechnologies.
About:
3D-PAINTED
BIOACTIVE IMPLANTS
Seed VC (11/11/2020)
$3.2M
Latest round:
Amount:
Dimension Inx is developing
3D-printed, bioactive
implants that the company
aims to help address the
shortage of donor tissues
and organs.
About:
MEDICAL DEVICES
48
Company
Deal date //
Amount raised ($M)
Total disclosed
funding ($M)
Select investors
Description
*The FDA’s Breakthrough Devices Program was launched in 2018 to give patients and health care providers timely access to medical devices that
could provide more effective treatment over existing approved products.
MEDICAL DEVICES
Breakthrough device description
$80M
$147.1M
$33.9M
N/A
N/A
$50M Series C
(5/21/2019)
$52.4M Series E
(11/12/2020)
$30.5M Series A
(9/22/2020)
N/A
N/A
Google Ventures, Novartis / Novartis
Venture Funds, Johnson & Johnson / J&J
Innovation, Action Potential Venture
Capital (GSK)
New Enterprise Associates, Boston
Scientific, Medtronic, Action Potential
Venture Capital (GSK), Lightstone
Ventures
Dolby Family Ventures, INKEF Capital,
Thuja Capital Management, SHS
Gesellschaft fur Beteiligungsmanagement
N/A
N/A
Cala Health’s Trio is a wearable, targeted neurostimulation device that is FDA-cleared
to treat essential tremors and is now being investigated as a potential ”Breakthrough”
treatment for hand action tremors associated with Parkinson’s disease.
SetPoint’s MicroRegulator is a small, wirelessly-powered implant that emits targeted
electrical pulses to control inflammation. It is being investigated as a potential
“Breakthrough” treatment for rheumatoid arthritis, particularly in patients who are
intolerant/unresponsive to biologics.
Salvia’s implantable neurostimulation system is being investigated as a potential
“Breakthrough” treatment for chronic migraine. It leverages thin, flexible bioelectronic
foils that adapt to the anatomy of the head.
NeuroEM’s Memorem is a wearable device being investigated as a potential
“Breakthrough” treatment for Alzheimer’s disease. Using transcranial electromagnetic
treatment (TEMT) technology, Memorem breaks down amyloid beta and Tau
aggregates in the brain.
Spark’s Roo System is a non-invasive neurostimulation device being investigated as a
potential “Breakthrough” treatment for the symptoms associated with Neonatal Opioid
Withdrawal Syndrome (NOWS).
Bioelectronic medicine startups received ‘Breakthrough
Device’ d signatins from the FDA
Company
Total disclosed
funding ($M)
Select investors
Latest equity
round
49
MEDICAL DEVICES
MEDTRONIC
INVESTED IN BRAINSGATE
COLOPLAST
ACQUIRED NINE CONTINENTS
In December, Medtronic participated in
BrainsGate’s $14M Series F round. The
startup’s implantable neurostimulation
device augments cerebral blood flow to
treat ischemic stroke. The device has
already received marketing approval in
Europe and is awaiting a regulatory
decision from the US FDA.
In mid-October, Astellas Pharma acquired early-
stage startup and strategic partner Iota
Biosciences for $128M (with an additional
$177M in potential milestone payments).
Astellas is also committing $125M to fuel Iota’s
“aggressive expansion” over the next 5 years.
The companies are researching how to harness
the body’s electrical signals to treat conditions
like asthma, arthritis, and gastrointestinal
diseases.
In November, Coloplast acquired early-stage
startup Nine Continents Medical for $145M
to enhance its growth opportunities in
interventional urology. Coloplast is planning
2021 pivotal studies of Nine Continents’
implantable tibial nerve stimulator to treat
overactive bladder.
Life science incumbents made strategic moves in
bioelectronic medicine
ASTELLAS PHARMA
ACQUIRED IOTA BIOSCIENCES
50
MEDICAL DEVICES
Series A (10/28/2020)
$10M
Latest round:
Amount:
About:
Using AI and big data, kelaHealth’s clinical decision
support solution couples real-time patient risk
analysis with clinical decision frameworks to help
surgical care teams avoid high-cost complications
and improve surgical outcomes.
Intuitive Surgical launched a $100M corporate VC
fund and completed its first investment
51
WOMEN’S HEALTH
Companies focused
specifically on providing
healthcare products and
services to women
Icon
here
Icon
here
Icon
here
OMICS
Companies involved in the
capture, sequencing, and/or
analysis of genomic,
transcriptomic, proteomic,
and/or metabolomic data
CYBERSECURITY
Companies protecting
healthcare providers from
digital threats (e.g. malware,
insider abuse, phishing, etc.)
MEDICAL DEVICES
Companies developing medical
devices that aid in the diagnosis,
cure, mitigation, treatment,
monitoring, or prevention of
disease
Icon
here
AI
Companies selling AI SaaS to
healthcare clients or using AI
to develop products for the
healthcare market
TELEHEALTH
Companies using technology
to remotely deliver clinical
health services to patients
2020 State Of Healthcare
WHAT THIS REPORT COVERS
MENTAL HEALTH
Companies applying
technology to problems of
emotional, psychological, and
social well-being
52
Funding increased by 30% while deals fell QoQ
MENTAL HEALTH
Quarterly global mental health funding and deal count, Q1’18 – Q4’20
Total Funding ($M)
$210
$264
$133
$127
$240
$535
$226
$115
$583
$508
$417
$543
38
34
31
24
48
45
53
41
48
63
69
53
0
20
40
60
80
$-
$200
$400
$600
$800
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Q4'20
# Of Deals
53
2020 was a breakout year for mental health tech
MENTAL HEALTH
Annual global mental health funding and deal count, 2016 – 2020
Total Funding ($M)
# Of Deals
$323
$488
$734
$1,117
$2,051
102
109
127
187
233
0
100
200
300
$-
$500
$1,000
$1,500
$2,000
$2,500
2016
2017
2018
2019
2020
54
Early-stage deal share fell slightly but still dominated
MENTAL HEALTH
Annual global mental health deal share by stage, 2016 – 2020
Note: Early-stage deals include angel, seed, convertible note, and Series A rounds; mid-stage deals include Series B and Series C rounds; late-stage
deals include Series D+, growth equity, and private equity rounds; and other deals include unattributed and corporate minority investments.
Other
Late-stage
Mid-stage
Early-stage
77%
77%
70%
76%
65%
8%
10%
17%
10%
13%
5%
14%
11%
10%
9%
18%
0%
50%
100%
2016
2017
2018
2019
2020
55
Benefits platforms closed sizeable mid-stage rounds
MENTAL HEALTH
SPRING HEALTH
MODERN HEALTH
Series B (11/18/2020)
$76M
Latest round:
Amount:
Spring Health is a “precision mental health” benefit for
employers that combines a digital platform with a
vetted provider network. By using data to match
individual employees with mental healthcare services,
Spring aims to help improve recovery rates, shorten
recovery times, and lower costs.
About:
Series C (12/15/2020)
$51M
Latest round:
Amount:
Modern Health is a mental health benefits platform
for employers. The platform helps people access
support for issues like managing stress or treating
depression.
About:
56
Mental health provider tools raised early rounds
MENTAL HEALTH
HEADWAY
Headway offers a
marketplace to find
therapists. For providers, it
helps manage admin tasks
like reimbursements.
Seed VC (12/8/20)
$3.1M
Latest Round:
Amount:
Canada-based Aifred
Health develops an AI-
enabled clinical decision
support tool for mental
health providers.
About:
OSMIND
Seed VC – II (10/14/20)
$2M
Latest Round:
Amount:
Osmind provides practice
management and
monitoring software for
mental health
professionals.
About:
AIFRED HEALTH
Series A (11/18/20)
$26M
Latest Round:
Amount:
About:
57
Mental health partnerships continued across the
industry
MENTAL HEALTH
Lyra Health & Calm Partner to Combat
Stress, Burnout, and Support Resilience-
Building in the Workplace
October 20, 2020 |
CommonSpirit to link physical, behavioral
health with Concert Health deal
October 15, 2020 |
Aetna, Inpathy expand virtual mental
health partnership
November 2, 2020 |
Henry Ford Health partners with Acadia
Healthcare to build new mental health
hospital
December 9, 2020 |
58
WOMEN’S HEALTH
Companies focused
specifically on providing
healthcare products and
services to women
Icon
here
Icon
here
Icon
here
OMICS
Companies involved in the
capture, sequencing, and/or
analysis of genomic,
transcriptomic, proteomic,
and/or metabolomic data
CYBERSECURITY
Companies protecting
healthcare providers from
digital threats (e.g. malware,
insider abuse, phishing, etc.)
MEDICAL DEVICES
Companies developing medical
devices that aid in the diagnosis,
cure, mitigation, treatment,
monitoring, or prevention of
disease
Icon
here
AI
Companies selling AI SaaS to
healthcare clients or using AI
to develop products for the
healthcare market
TELEHEALTH
Companies using technology
to remotely deliver clinical
health services to patients
2020 State Of Healthcare
WHAT THIS REPORT COVERS
MENTAL HEALTH
Companies applying
technology to problems of
emotional, psychological, and
social well-being
59
$98
$131
$370
$117
$569
$302
$265
$196
$389
$229
$522
$521
32
44
47
34
55
46
59
46
47
60
71
61
0
20
40
60
80
$-
$100
$200
$300
$400
$500
$600
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Q4'20
Funding to women’s health dipped slightly in Q4’20
WOMEN’S HEALTH
Quarterly global women’s health funding and deal count, Q1’18 – Q4’20
Total Funding ($M)
# Of Deals
60
Mid-stage biopharma deals gained key investor interest
Note: The CB Insights Healthcare Smart Money investors are a cohort of top-performing VCs in the space. See them all in this report.
WOMEN’S HEALTH
CANCERS
INFANT MORTALITY
Series C (10/1/20)
$85M
Latest Round:
Amount:
Olema Pharmaceuticals develops therapies for
women’s cancers including breast cancer and
endometrial cancer.
4 of our Healthcare Smart Money investors —
Venrock, Deerfield Management, Foresite Capital,
OrbiMed Advisors – participated in the round. Olema
went public on 11/18/20.
About:
Series B (12/15/20)
$57.5M
Latest Round:
Amount:
Denmark-based MinervaX is developing a vaccine for
preventing Grupo B Streptococcus (GBS) infections
in newborns.
Corporate biopharma players Novo Holdings and
Sanofi participated in this round.
About:
61
Virtual maternity health solutions are on the rise
WOMEN’S HEALTH
REMOTE MONITORING
Series B (12/8/2020)
$4M
Latest Round:
Amount:
Babyscripts offers a
digital platform for
education and health
monitoring during
pregnancy.
About:
INTEGRATED CARE
Seed VC (10/20/2020)
$3.2M
Latest Round:
Amount:
Oula provides maternity
care services through in-
person and virtual visits.
It also offers virtual
coaching with midwives.
About:
EDUCATION
Private Equity (10/27/2020)
Undisclosed
Latest Round:
Amount:
Germany-based ViMum
offers birth preparation
courses along with live
consultations with
midwives and OBGYNs.
About:
62
Company
Deal date //
Amount raised ($M)
Total disclosed
funding ($M)
Select investors
Description
Dec’20 //
$4.4M
Nov’20 //
$4.16M
Nov’20 //
$5.27M
Dec’20 //
$900K
$43.84M
$24.68M
$4.69M
$7.61M
$1.9M
Spark Capital
N/A
Impact Partenaires, Thierry Vandewalle,
Xavier Gury
VestedWorld
Social Starts, AARP Innovation Fund,
Precursor Ventures, Tusk Ventures
Lola offers a range of products in period care, sexual wellness, hygiene,
and PMS wellness.
Rael develops a suite of wellness products for women in period care,
hygiene, skin care, and incontinence.
France-based Dans Ma Culotte offers feminine care products including
washable sanitary napkins, menstrual cups, and wellness products.
Rwanda-based Kasha sells and delivers women’s health products in a
confidential and affordable manner in Rwanda and Kenya.
Attn:Grace develops a line of products to help women tackle bladder
weakness, such as liners, pads, and briefs. In December 2020, it
announced its strategic collaboration with AARP Innovation Labs.
Feminine hygiene startups go beyond traditional period care
WOMEN’S HEALTH
Nov’20 //
$8.64M
63
WOMEN’S HEALTH
Companies focused
specifically on providing
healthcare products and
services to women
Icon
here
Icon
here
Icon
here
OMICS
Companies involved in the
capture, sequencing, and/or
analysis of genomic,
transcriptomic, proteomic,
and/or metabolomic data
CYBERSECURITY
Companies protecting
healthcare providers from
digital threats (e.g. malware,
insider abuse, phishing, etc.)
MEDICAL DEVICES
Companies developing medical
devices that aid in the diagnosis,
cure, mitigation, treatment,
monitoring, or prevention of
disease
Icon
here
AI
Companies selling AI SaaS to
healthcare clients or using AI
to develop products for the
healthcare market
TELEHEALTH
Companies using technology
to remotely deliver clinical
health services to patients
2020 State Of Healthcare
WHAT THIS REPORT COVERS
MENTAL HEALTH
Companies applying
technology to problems of
emotional, psychological, and
social well-being
64
Omics funding hit a record high in Q4’20
OMICS
Quarterly global omics funding and deal count, Q1’18 — Q4’20
Total Funding ($M)
# Of Deals
$1,159
$929
$1,216
$552
$816
$1,130
$1,065
$1,546
$1,014
$2,082
$1,760
$2,213
61
58
70
61
68
62
65
64
60
46
61
43
0
10
20
30
40
50
60
70
$-
$500
$1,000
$1,500
$2,000
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Q4'20
65
Note: Other includes all other equity rounds (growth equity, private equity, unattributed, convertible note, corporate minority).
Decline in early-stage deals signals a maturing space
OMICS
Deal share by stage for omics startups, 2016 – 2020
35%
28%
20%
22%
15%
24%
21%
21%
27%
23%
13%
16%
16%
12%
22%
9%
13%
17%
18%
25%
19%
22%
26%
21%
15%
0%
50%
100%
2016
2017
2018
2019
2020
Series C+
Series B
Series A
Seed/Angel
Other
66
Company
Deal date //
Amount raised ($M)
Total disclosed
funding ($M)
Select investors
Description
Dec’20 //
$200M
Dec’20 //
$153M
Oct’20 //
$149M
Oct’20 //
$110M
$484.5M
$1,070M
$233M
$242.7M
$250.8M
OrbiMed Advisors, T. Rowe Price, Sixth
Street Partners, Coatue
Management, Neuberger Berman,
T. Rowe Price, Novo Holdings, Franklin
Templeton, Google, and Baillie Gifford &
Co.
DT Capital Partners, Green Pine Capital
Partners, Prosperico Venture, WuXi
Capital, Proxima Ventures, Linden Asset
China Renaissance, Hillhouse Capital
Management, Matrix Partners China, China
Structural Reform Fund
Generation Investment
Management, Pictet Group,
Endeavour Vision, Swisscom
Ventures, Eurazeo
Caris offers DNA, RNA, and proteins analysis services to support
treatment decisions.
Tempus is a molecular and clinical data platform that leverages
machine learning to help physicians deliver personalized cancer care.
Singlera provides non-invasive genetic services for prenatal testing,
tumor diagnosis, and personalized treatment.
Genecast develops DNA-based cancer diagnostics testing of tumors
and gene-based medicine guidance for lung, colon, liver, and breast
cancers.
Sophia is a platform to analyze and detect genomic variants to help
clinicians better diagnose and treat their patients.
Mega-rounds for precision medicine in Q4’20
OMICS
Oct’20 //
$310M
67
Acquisitions continued for multiple omics use cases
OMICS
DRUG DISCOVERY
PerkinElmer
$383M
Acquired by:
Valuation:
Horizon Discovery is a
genomics company
developing and supplying
drug discovery tools.
About:
DIAGNOSTICS
Exact Sciences
$2.15B
Acquired by:
Valuation:
Thrive Earlier Detection is
developing a liquid biopsy
test, designed to be
administered annually, to
help detect cancer early.
About:
SEQUENCING
10X Genomics
$350M
Acquired by:
Valuation:
ReadCoor provides a
sequencing platform for
researchers, clinicians,
pharma, and diagnostics
companies.
About:
68
$242
$99
$428
$128
$333
$406
$509
$413
$597
$1,105
$704
$436
$-
$250
$500
$750
$1,000
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Q4'20
Liquid biopsy funding drops after pandemic-related spike
OMICS
Quarterly global liquid biopsy funding, Q1’18 — Q4’20
Total Funding ($M)
Note: Liquid biopsy companies leverage omics technology for sequencing and analysis.
69
WOMEN’S HEALTH
Companies focused
specifically on providing
healthcare products and
services to women
Icon
here
Icon
here
Icon
here
OMICS
Companies involved in the
capture, sequencing, and/or
analysis of genomic,
transcriptomic, proteomic,
and/or metabolomic data
CYBERSECURITY
Companies protecting
healthcare providers from
digital threats (e.g. malware,
insider abuse, phishing, etc.)
MEDICAL DEVICES
Companies developing medical
devices that aid in the diagnosis,
cure, mitigation, treatment,
monitoring, or prevention of
disease
Icon
here
AI
Companies selling AI SaaS to
healthcare clients or using AI
to develop products for the
healthcare market
TELEHEALTH
Companies using technology
to remotely deliver clinical
health services to patients
2020 State Of Healthcare
WHAT THIS REPORT COVERS
MENTAL HEALTH
Companies applying
technology to problems of
emotional, psychological, and
social well-being
70
Funding spike in Q4’20 capped off a record year
CYBERSECURITY
Quarterly global healthcare cybersecurity funding and deal count, Q1’18 — Q4’20
Total Funding ($M)
# Of Deals
$243
$1,357
$343
$661
$610
$1,660
$689
$435
$1,092
$1,250
$846
$1,366
19
31
23
21
21
30
16
18
18
22
26
13
0
10
20
30
40
$-
$500
$1,000
$1,500
$2,000
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
Q4'20
71
Cybersecurity in healthcare made headlines in Q4’20
Source: CB Insights
CYBERSECURITY
Media mentions of healthcare cybersecurity, 2015 – 2020 (11/30/2020)
FBI, DHS Warn Hospitals of ‘Credible
Threat’ from Hackers
October 2020 |
Patients of a Vermont Hospital Are
Left ‘in the Dark’ After a Cyberattack
November 2020 |
72
Endpoint security and privacy drove mega-rounds
CYBERSECURITY
PRIVACY
Series C (12/21/2020)
$300M
Latest Round:
Amount:
OneTrust provides tools for
protecting personal data and
complying with regulations.
About:
ENDPOINT SECURITY
Series F (11/11/2020)
$267M
SentinelOne monitors cloud
environments and connected
devices for threats.
ENDPOINT SECURITY
Series I (10/5/2020)
$151M
Tanium protects devices from
threats by monitoring activity
and patching vulnerabilities.
Latest Round:
Amount:
About:
Latest Round:
Amount:
About:
73
Strong demand for data protection in Q4’20
CYBERSECURITY
FAIRWARNING
NETWRIX
Acquisition (12/2/2020)
Undisclosed
Exit Round:
Amount:
FairWarning helps healthcare companies protect
patient data and boost compliance by offering
tools to monitor its access and use.
About:
Acquirer:
Imprivata
Acquisition (10/1/2020)
Undisclosed
Exit Round:
Netwrix manages access to sensitive data to
prevent exposure and malicious use.
Acquirer:
TA Associates
About:
Amount:
74
Appendix
75
GET ALL THE DATA USED IN THIS REPORT
AI IN HEALTHCARE
COLLECTION
TELEHEALTH COLLECTION
MEDICAL DEVICE COLLECTION
MENTAL HEALTH & WELLNESS
COLLECTION
WOMEN’S HEALTH & WELLNESS
COLLECTION
OMICS COLLECTION
HEALTHCARE CYBERSECURITY
COLLECTION
76
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 29.
― 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.
Methodology