Snapsho: Wearables and Health Startup Landscape Hartti Suomela 00.00.2014
Dec 13, 2014
Snapsho: Wearables and Health Startup LandscapeHartti Suomela00.00.2014
Wearables
04/10/2023
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Categorization?
Overview: Wearables
• $1.4 billion has been invested into startups in wearables over the last 5 years• Funding rose 135% in 2013• Annual funding record already achieved in the first 8 months in 2014• California: 77% of funding and about 50% of companies backed• Activity trackers are dime in a dozen– For example Jawbone and Misfit have announced their apps will work with
anyone’s device -> moving from device manufacturer to a platform– Activity tracking is now a feature, not a product
• FDA approval or not? Depends…
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Enablers
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Biggest VC Fundings in Wearables
Rank Company HQ Funds
1. Jawbone San Francisco $470.8M
2. Fitbit San Francisco $66M
3. mc10 Cambridge, MA $63M
4. mCube San Jose $37M
5. Withings France $34M
6. Ineda Santa Clara & India $26M
7. Misfit Wearables Redwood City $23M
8. Zepp Labs Los Gatos $20M
9. Quanttus Cambridge, MA $19M
10. Recon Instruments Vancouver, B.C., Canada $17M
© Finpro Source: CB Insights
Note: Pebble has gotten $26M, but $10M is through Kickstarter campaign
Looking for additional $100M?
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Selected Wearables Exits
Company Valuation Exit Select Investors
GoPro $3.1B IPO (2014) US Venture Partners, Walden International
Oculus VR $2B Acquired by Facebook (2014)
Founders Fund, AZ16, Spark Capital, Formation 8
myBasis $100M Acquired by Intel (2014)
Norwest Venture Partners, Mayfield Fund, Intel Capital
BodyMedia $100M Acquired by Jawbone (2013)
DFJ, Comcast Ventures
Source: CB Insights
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Most Active VCs in Wearables
Rank VC Companies Including
1. True Ventures 6 Fitbit (San Francisco)
2. Andreessen Horowitz 5 Oculus VR (Irvine)
2. Kohsla Ventures 5 Jawbone (San Francisco)
4. First Round Capital 4 Thalmic Labs (Ontario)
4. Bessemer Venture Partners 4 OMSignal (Montreal)
4. Intel Capital 4 Basis Science (San Francisco)
7. The Social + Capital Partnership
3 FiLIP Technologies (New York)
7. Eniac Ventures 3 Dekko
7. KPCB 3 mCube (San Jose)
7. Doll Capital Management 3 Athos Works and Basis Science
7. Horizons Ventures 3 Misfit Wearables (Daly City)
Source: CB Insights
A few words about Health companies…
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Big Health/Biotech Fundings of Q2/2014Silicon Valley
Company Amount Business desc.
Proteus Digital Health $119.45M Digital medicines company
Coherus Biosciences $55.63M Biologics platform company
Avalanche Biotechnologies $55.13M Gene therapies for serious eye diseases
Doximity $54M Operates professional medical network for doctors
Benvenue Medical $40M Medical solutions and biomaterial for spine repair
Spinal Kinetics $33.85M Medical device company
Guardant Health $31.5M Cancer test based on blood samples
EndoGastric Solutions $30.64M Surgery solutions for gastroesophageal reflux disease
ARMO Biosciences $30M Biotechnology company
Source: Silicon Valley Business Journal
04/10/2023
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Overview: Health & Biotech
• In H1/2014 VC investments in health & health IT companies was over $2.2B!– Q2/2014: VCs invested $632M in biotech companies• Almost fivefold increase since 2012
• California leads the way in VC investments (2x no 2 Massachusetts) – 37% of the deals• 1/3 of the healthcare VC investments are in medical devices!• More and more start-ups are getting FDA approvals
– AliveCor: Mobile app and smartphone case to monitor heart health– Vital Connect: Bandaid size patches (HeathPatch) to measure heart rate, breathing, stress
levels, skin temperature and other vital signs• Moving to digital health coaching
– MyFitnessPal acquired Sessions– WeightWatchers acquired Wello– Omada Health, Kurbo Health have raised some serious funding
• Biohacking– OpenPCR: open source hardware, software, and protocols to detect the presence of a
particular DNA sequence– DIYbio: do it yourself biotechnology
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Where is the Smart VC Money Going?In Healthcare, That Is…
• Health cost transparency– Firms include Stride Health (NEA, Kleiner Perkins), Pokitdok (CRV), GetInsured
(Bessemer Venture Partners) and Eligible (Andreessen Horowitz).• Big data healthcare analytics– Firms include Comprehend Systems (Sequoia Capital), Zephyr Health (Kleiner
Perkins), Health Catalyst (Sequoia Capital) and SolveBio (Andreessen Horowitz).• Quantified self– Firms include both software and wearable tech startups including MyFitnessPal
(Kleiner Perkins, Accel), Jawbone (Sequoia, Khosla, Kleiner Perkins, Andreessen Horowitz), Misfit (Founders Fund, Khosla), Pebble (CRV).
• Real-time healthcare (including telehealth)– Firms include Doctor on Demand (Andreessen Horowitz, Google Ventures),
Healthtap (Khosla Ventures), First Opinion (Felicis Ventures, Greylock Partners) and TalkSpace (Spark Capital).
Source: CB Insights
Thanks!