1 In The Shadow Of Covid-19: Consumer Investment & Sector Trends To Watch State Of Healthcare Q3’20 Report: Sector And Investment Trends To Watch 2 SIGN UP FOR A FREE TRIAL CB Insights helps the world’s leading companies make smarter technology decisions with data, not opinion. Our Technology Insights Platform provides companies with comprehensive data, expert insights and work management tools to drive growth and improve operations with technology. WHAT IS CB INSIGHTS? 3 With CB Insights, Froedtert Health is able to move quickly when assessing the market or evaluating potential partners. We can then dive deeper into a certain topic and collaborate across our organization all within one platform. Mike Anderes Chief Innovation and Digital Officer, Froedtert Health 4 DISCOUNTED TICKETS TO OUR UPCOMING OUR VIRTUAL EVENTS The CBI Community VIRTUAL EVENTS Our Most Popular Client-Exclusive Research Digital Therapeutics: The $9B Market Redefining Disease Prevention, Management, & Treatment 9 Startups That Are Tackling Healthcare Interoperability Healthcare Anywhere: 120+ Telehealth Startups Transforming Patient Care 12 Startups Using Telehealth To Fill Gaps In Pandemic Care 9 Direct-To-Consumer Telehealth Startups To Watch Inside Google’s Ambitions To Become The Go-To Vendor For Healthcare IT 10 Startups Turning Smartphones Into Medical Devices Microbiome Personalization Could Reshape Health And Wellness Reinventing Sleep: What 10 Partnerships Tell Us About Where Sleep Tech Is Going Next How Google Is Advancing Patient Monitoring & Developing Next-Gen Hospital Equipment AI In Healthcare Heatmap: 1.2K+ Deals Across Genomics, Drug Discovery, And More Digital Health 150 Spotlight: Asia-Based Startups 150+ Private Companies Driving The Transformation To Value-Based Care 40+ Startups Aiding Infectious Disease Care And Containment Where The World’s Largest Medical Device Companies Are Investing In Healthcare 6 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 The image part with relationship ID rId2 was not found in the file. #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. The image part with relationship ID rId2 was not found in the file. #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 The image part with relationship ID rId2 was not found in the file. #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.