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StartUp Health Q3 2018: Companies raised a record-breaking $4.5B during the quarter

The digital health market is expected to surpass 2017 deal counts, with an increase in the percentage of mid- and late-stage deals.

StartUp Health Q3 2018: Companies raised a record-breaking $4.5B during the quarter

Shortly after Rock Health, we have StartUp Health releasing its numbers for Q3 2018. And like Rock, it too has found this too be the biggest quarter ever, with a total of $4.5B raised, pushing the market well into double digit billions to $11.1B year to date. Overall, digital health funding is on track to surpass 2017 funding totals by almost $1B.

Also, Q3 saw the greatest number of mid- and late-stage deals as a percentage of all deals, continuing a year-over-year trend since 2010. The market is expected to surpass 2017 deal counts, with an increase in the percentage of mid- and late-stage deals.

Top 10 deals of 2018 to date were: Peloton ($550M), Oscar ($375M), Grail ($300M), 23andMe ($300M), American Well ($290M), Butterfly Network ($250M), HeartFlow ($240M), Oscar ($165M) and LinkDoc ($149M).

The most active U.S. metro areas 2018 YTD are: SF Bay Area (29 deals in the quarter, 106 deals YTD), New York City (25 deals during Q3, 71 deals YTD), Boston (13 deals in Q3, 37 deals YTD), Los Angeles (12 deals in Q3, 21 deals YTD), and Chicago (2 deals in Q3, 9 deals YTD).

Beyond U.S. these are the leading cities across the world: London (4 deals in Q3, 16 deals YTD), Beijing (7 deals in Q3, 16 deals YTD), Stockholm (4 deals in Q3, 15 deals YTD), Bengaluru (2 deals in Q3, 13 deals YTD), Singapore (6 deals in Q3, 13 deals YTD); also on the top 10 list are New Delhi, Toronto, Tel Aviv, Berlin, and Mumbai.

The most active investors during the quarter were Khosla Ventures with 13 deals YTD; followed by Founders Fund, NEA and F-Prime, each with 10 deals YTD; Thrive Capital and Oak HC/FT, each with 7 deals; Kleiner Perkins, General Catalyst and GV, each with 6 deals YTD.

The total number of unique investors in 2018 has already exceeded the total from 2016 and previous years, nearly doubling since Q3 2017. This upward trend is expected to continue into Q4, exceeding final 2017 numbers.

Finally, the top sectors of 2018 YTD include: Patient Empowerment ($2.1B raised across 149 deals), Wellness ($1.6B – 64 deals), Biometric Data Acquisition ($1.5B – 50 deals), Clinical Workflow ($1.1B – 98 deals), Admin Workflow ($1.0B – 85 deals), Research ($964M – 37 deals), Personalized Health ($857M – 54 deals), Insurance ($854M – 12 deals), Population Health ($701M – 27 deals), and Education ($280M – 11 deals).

You can see the full presentation below.

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