Investors continued to pour money into the consumer healthtech space, as total dollars invested ($4B) climbed to a peak in 2016. The year saw seed stage deal volume drop by around 14%, while early (11%) and late stage activity (15%) registered modest growth rates. A similar curve was seen in the total dollars invested, at the seed (-10.3%), early (17.6) and late stage (28.5%). Interestingly, the average ticket sizes for Series A and Series B rounds seem to be converging, judging by chart trends over the past three years.
In 2016, there were nine funding rounds above $100M, six of which went to Chinese companies, and three to US companies. The above chart also explains the bump in average Series A ticket sizes, owing to a $500M Series A round raised by Shenzhen-based telemedicine platform Ping An Good Doctor.
Online platforms enabling access to doctors was the top-funded business model in this sector, accounting for $1.2B in 2016. Telemedicine solutions attracted a majority of this amount ($988.6M), as the widespread adoption of connected devices for health monitoring, smartphones and mobile apps have increased the scope and reach of this use case. Some medical illnesses related to mental health and sexual disorders are associated with social stigma. Telemedicine platforms help patients to seek care from the comfort of home with anonymity. Apart from Ping An Good Doctor, some of the newly funded rising stars in telemedicine include Jakarta-based Halodoc ($13M, Series A), Minneapolis-based Zipnosis ($17M, Series A), and San Francisco-based Go Lantern ($17M, Series A).
Apps and devices to monitor women’s fertility received $189.2M in funding in 2016, the highest ever for the sector. Xiamen-based Meet You ($151M, Series E), Berlin-based Clue ($20M, Series B), and Zurich-based Ava ($10M, Series A) bagged the largest rounds in this segment.
Shenzhen-based Doctor160 (NEEQ: 834750) was the sole IPO listing in 2016. The top exits via acquisitions, where deal values were disclosed were Everyday Health (acq. by Ziff Davis, $465M), Withings (acq. by Nokia, $191M), and HealthiestYou (acq. by Teladoc, $125M).
500 Startups, Y Combinator, and Rock Health are the most active early stage investors in the consumer healthtech sector. At the Series A and B stage, Sequoia Capital, Khosla Ventures, and Accel Partners are the most active. Notable investors at the late stage Sequoia Capital, Goldman Sachs, Matrix Partners China, NEA, and Tencent.
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