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1 State Of Healthcare Report: Investment & Sector Trends To Watch 2 CLICK HERE TO 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 Using the CB Insights platform has allowed AdventHealth to work smarter. We are able to identify competitive threats and understand where the market is moving so we can differentiate our product offering accordingly. Nicholas Archer CEO of Project Fulcrum, AdventHealth 4 Our Most Popular Client-Exclusive Research Digital Therapeutics: The $9B Market Redefining Disease Prevention, Management, & Treatment Healthcare Anywhere: 120+ Telehealth Startups Transforming Patient Care How Quantum Tech Could Change Drug Discovery, Diagnostics, And Patient Privacy Where Pharma Giants Are Betting On Artificial Intelligence In Healthcare How Digital Biomarkers Can Help Advance Precision Medicine Inside Google’s Ambitions To Become The Go-To Vendor For Healthcare IT Tech Market Map Report: Healthcare Providers Digitization & Task Automation Tech The Omics Market Map: 60+ Companies Defining The Future Of Biological Data Reinventing Sleep: What 10 Partnerships Tell Us About Where Sleep Tech Is Going Next Medicare Advantage Partnerships And What They Tell Us About Competition Between Insurers AI In Healthcare Heatmap: 1.2K+ Deals Across Genomics, Drug Discovery, And More The Hospital Of The Future: 90+ Companies Reimagining How Healthcare Is Delivered 150+ Private Companies Driving The Transformation To Value-Based Care Apple’s AI Strategy In Healthcare: How The Tech Giant Is Tackling Heart Health, Cognitive Health, Elder Care, And More How Telehealth Can Improve Surgical Care 5 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
