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1Issue4StartUpHealthMagazine12019Q3StartUpHealthInsights™Ayear-to-datereportonhealthinnovationandthehealthmoonshotstransformingtheworld.ABOUTSTARTUPHEALTHINSIGHTS™StartUpHealthcollectsandsharesmarketinsightsbecausethesedatapointstellacriticalpartofthehealthinnovationstory.Morethansimplychroniclingtheflowofmoney,thisreportprovidesaglimpseintotheoverallprogressofourhealthmoon-shots.Thestorybeneaththetop-linefiguresopensupnewchallengesaswellasoppor-tunities.Healthmoonshotsrequireradicalcollaboration,soweencourageyoutodigintothisreportandthenbringyourownin-sightstothetableathq.startuphealth.com.ReportAuthorsNicoleClark|PolinaHaninContributorsAnneDordai|JenniferHankinNicoleKinsey|TaraSalamoneDesignLoganPlaster---©2019StartUpHealthHoldings,Inc.StartUpHealthandHealthTransformerandassociatedlogosareregisteredtrademarksofStartUpHealthLLC.ABOUTSTARTUPHEALTHStartUpHealthisona30-yearmissiontocollaboratewithentrepreneurstoimprovethehealthandwellbeingofeveryoneintheworld.Since2011,StartUpHealthhasbeeninvestinginaglobalarmyofentrepreneurstoachievehealthmoonshotsandhastheworld’slargesthealthinnovationportfoliowith300companiesacrosssixcontinentsand24countries.---Jointhemovementatstartuphealth.comSignuptoreceiveweeklyfundinginsightsatstartuphealth.com/insider®2StartUpHealthInsightsSTARTUPHEALTHINSIGHTSOverviewHealthInnovationFundingHighlightsKEYMARKETSSEESPIKESINFUNDINGInthefirstthreequartersof2019,healthinnovationcompaniesraised$10.4B.Asistypicalofthistimeofyear,thethirdquartersawamodestdipinfunding.Infact,insevenofthepastnineyears,thethirdquarterwaseitherflatordownfromitsprecedingquarter.Butthisquarterofferedmultiplebrightspotsandexceptions.Thisquarter,fundinginsupportofpopulationhealthsawajumpof200%,thehighestofanyfunctionwetrack,bringinginover$720MinQ3and$1.2Bfortheyear.TheWomen’sHealthandAccesstoCareMoonshotscontinuetoenjoyasteadysurgeofcapitalfortheyear–$4.5BYTDforAccesstoCareand$295MYTDforWomen’sHealth–alongwithupticksindealvolume.Thiscomesdespiteapoliticallychargedtimeforbothwomen’shealthrightsandglobaldebatesovergovernment-sponsoredhealthcaremodels.TheAddictionMoonshot,whichsawafundingincreaseof223%.TwohealthmoonshotswereuponQoQdealcount:Cancerwitha113%increaseinvolumeandAddictionwitha100%jump.Women’sHealthcontinuedtoleadfromaYoYoutlook,withfundingupby66%,and65%moredealsthanthistimelastyear.AccesstoCareishistoricallyourmostlucrativehealthmoonshotbywayoffundinganddealcountandremainedsoinQ3,rakingin$1.5Bacross101deals.FUNDINGFORWOMEN’SANDCHILDREN’SHEALTHHELPSNARROWINNOVATIONGAPNotsurprisingly,wecontinuetoseehighpercentagesofearlystagedealsintheWomen’sHealthandChildren’sHealthMoonshots(71%).ThisisimportantevidenceofanincreaseinR&Dorproductdevelopmentintwoarenaswherebothhavehistoricallybeenlacking.We’rehopefulthatthissurgeinfundingwillhelpnarrowthehealthinnovationgapforthesepatientpopulations.CANCERANDMENTALHEALTHFUNDINGMATURESEventhoughdealcountsforCancer(34YTD)andMentalHealth&Happiness(45YTD)arelessthanourbroader-definedmoonshotslikeAccesstoCare(259YTD),thesetwohadthelargestproportionoflate-stagedeals.Thisisgoodnews.AconcentrationofSeriesDroundsandlaterindicatethattheentrepreneursfuelingthesehealthmoonshotsaretamingthelearningcurve.DigitalinnovationslikeCalm’smeditationappandDNAnexus’genomicsresearchplatformarematuringoutofdevelopmentmodeandbeingbroughttoaglobalmarket.ADOPTINGPOPULATIONHEALTHBESTPRACTICESPopulationhealthcontinuedtobeanincreasingly-fundedfunction,witha22%increaseindealsoverthesamequarterlastyear.Todatethisyear,it’sbroughtin$1.2B,mainlyduetoBabylonHealth’s$500Mround.Thisneedstobemorethanafleetingtrend.Populationhealthinitiativescanhelpdirectlargehealthsystems–whicharehistoricallykeepersofuniqueandtimelydataonthemostvulnerablepatients–totakeamorestrategicdirectioninhowtheymanagehealthatacommunitylevelCONCLUSIONThenewnormofquarterlymegadeals,abreakintheIPOdrought,alongwiththetypicaluptickinhealthinnovationcapitalduringQ4,suggestthat2019willcontinuestrongandbecomethesecondmost-fundedyearforhealthinnovation,ever.33Lastquarter,wereportedthat2019wasshapinguptobeTheYearofthePatient.Thisquarter,whiletotalfundinghastakenitstypicalpost-summerdip,we’repleasedtoseethatthesoulofthehealthrevolution–thepatient–isstillamarketpriority(thisquarter,$420Mwasinvestedintohealthinnovationcompanieswithafocusonpatientempowerment).At$10.4Binfundingyeartodate,we’realsoonpartohavethesecondmost-fundedyearforhealthinnovation,ever.Hereareourtoplinetakeaways:2StartUpHealthInsights33$1.1B$2.1BQ1Q2Q3Q42010201120122013201420152016201720182019YTDThisyeartodate,healthinnovationcom-panieshaveraised$10.4B,trailing2018by10%.Yearoveryear,dealcountstrailedby13%.Amajorityofthirdquarterdealswereearly-stage,producingalowermediandealsizeof$4.2M,whencomparedto$8.1Mthesametimelastyear.IntheU.S.,theresearchhealthfunc-tionproducedfourdealsinourtopdealslist,whilenon-U.S.metroareasfocusedonpopulationhealthandrefiningclinicalworkflows.Webelievetheyearwillendstrong,andlikelybeonparwith2018’srecord-breakingnumbers.Fortworeasons:1)Inthelasttwoyears,fundingsp