CONFIDENTIAL INFORMATION. NOT FOR DISTRIBUTION.JOIN THE HEALTH TRANSFORMER MOVEMENT

STARTUP HEALTH INSIGHTS

Katya Hancock Director of Strategic Partnerships

katya@startuphealth.com @katyahancock

In Depth Analysis of Digital Health Funding & Trends

25 YEARS

5 YEARS

LAUNCH

2CONFIDENTIAL INFORMATION. NOT FOR DISTRIBUTION. 2

5 YEARS INTO OUR 25-YEAR MISSIONTransform the Health & Wellbeing of Everyone in the World

WHEN WE DO THISAchieve 10 Moonshots Essential to Improving Global Health

1 Access to Care Moonshots Deliver quality care to everyone, regardless of location or income

2 Cost to Zero Moonshots Radically reduce the cost of care by a factor of a million

3 Cure Disease Moonshots Cure disease using data, technologies and personalized medicine

4 Cancer Moonshots End cancer as we know it

5 Women’s Health Moonshots Prioritize women’s health, including preventive care and new research

6 Children’s Health Moonshots Ensure every child has access to quality care, particularly in underserved areas

7 Nutrition Moonshots Ensure everyone has access to high quality, healthy food and water

8 Brain Health Moonshots Unlock the mysteries of the brain to improve health

9 Mental Health Moonshots De-stigmatize mental health and connect mind, body and spirit

10 Longevity Moonshots Add 50 healthy years to every human life

JOIN THE HEALTH TRANSFORMER MOVEMENT ™ & © 2016 StartUp Health Holdings, Inc. All rights reserved. 3

A NEW MODEL FOR TRANSFORMING HEALTH

GLOBAL ARMY

LIFETIME COACHING

PARTNER ACCESS

MEDIA PLATFORM

DATA-DRIVEN TECH PLATFORM

COACHING FROM “UNIQUE ABILITY” TEAM

4JOIN THE HEALTH TRANSFORMER MOVEMENT ™ & © 2016 StartUp Health Holdings, Inc. All rights reserved.

Based on The Health Transformer Mindset™

Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC5

350+ Entrepreneurs from 169 Companies and 16 CountriesA GLOBAL COMMUNITY OF TRANSFORMERS

5

NEW YORK

3,000+ Companies Have Applied, Tracking 7,500+ Companies Globally

Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC6

Academy Companies Acquired

10

by

by

by

by

by

Female Founders

30%

by

Serial Entrepreneurs

34%

MDs and PhDs

43%

Total Raised by All Companies*

$617M

*$300M raised by HLI

ACADEMY PORTFOLIO AT-A-GLANCE

by

by

by

0

30

60

90

120

150

180

'11 '12 '13 '14 '15 '16 YTD

169 StartUp Health

Companies

6

by

1 US and Global Growth

2 Digital Health's First Wave

3 An Active Investor Ecosystem

4 Unique Collaborations

5 The Rise of the Rest

TAKEAWAYS: •Q3 was significant with almost $2.4B in deals, nearly half of which were international: supporting a continued trend of global market expansion

•2016 on track to be the biggest year ever for digital health funding

•2016 total deal volume on pace to outstrip 2015

FUNDING INSIGHTS: 2016 YTD SUMMARY

Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC8

•Digital health funding in Q3 2016 surpassed all previous third quarters •We are on track for the strongest year yet, with funding to date already passing 2015’s total of $6.1B

YEAR OVER YEAR FUNDING SNAPSHOT

Fund

ing

($B

)

$2

$4

$6

$8

2010 2011 2012 2013 2014 2015 2016 (YTD)

Q1 Q2 Q3 Q4

$1.1B

150

283

467

629574

523

394

Deal Count

$1.91B

Q3 $2.37B

$1.90B

$811M$619M

$ 6.5B (YTD)$6.1B

$7.1B

$2.9B$2.4B

$1.9B

$1.9B

$687M$270M

TAKEAWAY: Digital Health startup ecosystem continues to grow and mature significantly

Highest Seed-Series B deal counts: Patient / consumer experience, wellness, workflow

SUB-SECTOR MATURITY MAP (2010-2016)

Seed Series A Series B Series C Series D-H

TAKEAWAY: Big focus on empowering the consumer & providing tools for wellbeing & self-care

Patient/Consumer Experience

163 109 50 22 19

Wellness 113 63 28 11 11

Workflow 92 109 59 24 0

Medical Device 63 65 42 31 19

Big Data/Analytics 49 78 48 20 6

Clinical Decision Support

50 53 31 10 2

Personalized Health/QS 42 45 33 18 23

Population Helth 37 40 31 29 8

E-Commerce 39 38 15 6 4

Research 24 33 20 8 10

Education/Training 17 10 4 5 8

EMR 14 10 8 5 26

50Plus 5 4 4 1 15

Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC10

47%

45%

Oncology 12 25 17 6 6

Mental Health 16 20 9 3 1

Chronic Disease 17 18 7 4 8

Diabetes 12 17 11 9 9

Cardiology 9 11 9 8 5

Dermatology 10 5 2 0 0

Autism 5 3 3 3 0

Pulmonology 10 8 4 2 0

Ophthalmology 7 2 2 1 1

Immunology 2 2 3 1 0

Rare Disease 3 0 0 0 0

Seed Series A Series B Series C Series D-H

Oncology, Mental Health & Chronic Disease Related Deals Have Led Seed, Series A & B Funding Deal Counts

MARKET MATURITY MAP (2010-2016)

Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC11

Total investment tends to spike in May and September

FUNDING SNAPSHOT MONTH OVER MONTH

$1.9B

TAKEAWAY: Five out of nine months this year have record-setting funding numbers.

$0

$250,000,000

$500,000,000

$750,000,000

$1,000,000,000

$1,250,000,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec2013 2014 2015 2016 YTD

Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC12

The two $500M deals, Ping An Good Doctor, focused on bringing medical services to the Chinese market via mobile & Onduo, focused on solving one of America’s chronic disease challenges vary significantly.

THE TOP 10 LARGEST DEALS OF 2016 (YTD)

$1.9B

Company $ Invested Subsector Notable Investor

1 $500M Patient / Consumer Experience Undisclosed

1 $500M Patient / Consumer Experience

3 $448M Patient / Consumer Experience

4 $400M Wellness

5 $220M Personalized Health

6 $175M Personalized Health

7 $160M Wellness

8 $151M Patient / Consumer Experience

9 $120M Patient / Consumer Experience

10 $100M Personalized Health

10 $100M Medical Device

TAKEAWAY: Largest deals in 2016 going towards Patient / Consumer Experience

Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC13

The top-funded subsector shows a continued push towards patient/consumer experience, with almost triple the total funding of the second-most active focus area.

THE TOP 10 MOST ACTIVE SUBSECTORS OF 2016 (YTD)

$1.9B

Subsector Total Raised YTD Deal Count Average Deal Size

1 Patient / Consumer Experience $2.53B 101 $25.1M

2 Wellness $918M 33 $27.8M

3 Personalized Health / Quantified-Self $634M 26 $24.4M

4 Big Data / Analytics $564M 40 $14.1M

5 Medical Device $478M 40 $12.0M

6 Workflow $419M 59 $7.1M

7 Clinical Decision Support $309M 20 $15.4M

8 Population Health $248M 31 $8.0M

9 E-commerce $242M 13 $18.6M

10 Research $107M 15 $7.1M

TAKEAWAY: Patient / Consumer Experience has been the most active subsector in 2016

Source: StartUp Health Insights | startuphealth.com/insights Note: Report based on public data on seed, venture, corporate venture and private equity funding only through September 30, 2016. © 2016 StartUp Health LLC

This year, StartUp Health has joined regulars GE Ventures and Khosla Ventures as one of the most active venture investors in digital health

THE TOP VENTURE INVESTORS OF 2016 (YTD)

$1.9B

TAKEAWAY: New entrants & “Non-traditional” healthcare investors are taking the leadFirm 2016 YTD Deals 2015 Deals Stage

Early Mid Late

1 10 9

1 10 2

3 9 10

4 6 3

5 5 6

5 5 -

5 5 4

5 5 1

5 5 6

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Katya Hancock, Director of Strategic Partnerships katya@startuphealth.com

@katyahancock

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