StartUp Health Insights: A Closer Look at Q1 2020

In part II of our quarterly funding wrap-up we break down funding by health moonshot, median deal size and global hubs of innovation.

StartUp Health has been publishing an Insights Report focused on health innovation funding every quarter for nearly 10 years. In response to the pandemic’s impact on everyday life and the health innovation market, we’re shifting gears. We’re sharing the top-line funding Insights that you’ve come to expect. But then we’re sharing our vision for a better future and how we believe it can be achieved through Health Moonshot thinking. This is Part II of our special report.

Topline Numbers from Q1 2020

Surge in Telemedicine Investments Boosts Access to Care Funding by 63%

Earlier this week, we reported that Q1 telemedicine funding is up a staggering 1818% compared with Q1 of 2019 and remote patient monitoring platforms are up by 168% over the same period. These numbers give health startups supporting pandemic-response solutions a reason to hope amidst an economic downturn. These spikes play a large role in the 63% quarter-over-quarter increase in funding for the Access to Care Moonshot. On the other end of the scale — and something we’ve seen in prior quarters — Children’s Health and the Addiction Moonshot remain underfunded and still in their infancy.

Funding for Women’s Health Continues Its Upward Climb

For the past five quarters, Women’s Health funding has shown the strongest upward trend of any health moonshot. In Q1 2020, it had the highest median deal size thanks to three big raises by Color Genomics ($75M), Maven ($45M) and Advantia Health ($45M). Notably, Maven’s raise puts them in a small-but-growing group of women’s health companies to make it to a Series C round.

Precision Oncology Gains Momentum in the End Cancer Moonshot

During the second week of 2020, Concerto HealthAI raised $150M to expand their clinical insight platform for precision oncology. And in early March, precision medicine company Tempus closed a Series G deal for $100M to expand its AI-powered platform. At present, Tempus works with thousands of oncologists across hundreds of medical systems, including more than two-thirds of all Academic Medical Centers, touching roughly 30% of all cancer patients in the U.S.

A Step Back For Health Innovation Funding in China

In recent years, China’s secured its place on the leaderboard as one of the most funded metro hubs for health innovation. It’s also developed a reputation for inking mega deals each quarter (deals over $100M), like last year’s $250M raise by one of China’s biggest online healthcare platforms, Tencent Trusted Doctor. In our 2019 Year End StartUp Health Insights Report we concluded that “China had cemented its place as a hub for health innovation” and was “positioned for continued growth.” But after bracing for COVID-19 impact in December, deals in the country slowed to a trickle in Q1 2020.

Thousands of miles away and weeks before the coronavirus began to wreak havoc in Europe, Swedish digital doctor app Kry raised $155M to expand its video-based telehealth platform across Europe. The deal makes Stockholm the most funded non-US city for health innovation at the start of this new decade. Israel joined this top ten list this quarter in fifth place thanks to Insightec’s $100M raise to develop the first FDA-approved incision-less neurosurgery technology using an MR-guided ultrasound device.

StartUp Health’s Weekly Insights: Keep tabs here on our blog on the rapidly-changing health innovation market.

COVID-19 Navigator: Search for market-ready pandemic-response solutions, resources, and browse coronavirus stories and news.

StartUp Health’s Call for COVID-19 Innovation: A broad call for innovations that can aid the public, patients, and health professionals alike in a pandemic response. Apply now.

Sign up for StartUp Health Insider™: Get funding insights, news and special updates delivered to your inbox.

Bridging the Gaps in Health Innovation

Based on StartUp Health’s analysis of funding by Health Moonshot and most active health innovation hubs, we believe action is required in these areas:

• China’s absence from the list of top-funded health innovation hubs this quarter is to be expected. They were the first to have their health systems and economy put to the test as ground zero for the coronavirus. While we expect to see a similar slowdown in deal flow worldwide in Q2 and Q3, this is hardly the time to put global health on ice. We encourage investors to double down on health tech companies whose market-ready tools could have a direct impact on coronavirus challenges. Browse the StartUp Health COVID-19 Navigator to identify available solutions for a pandemic-response.
• Each quarter for the past year, we’ve observed a lackluster stream of funding for the Children’s Health Moonshot. In order to ensure that everyone — regardless of age — has access to quality care, especially during a global pandemic, it will be imperative for investors to collaborate with health innovators who are meeting the great health challenges facing children around the world.

Follow this special Insights report series here on the StartUp Health blog. In coming installments, we’ll continue to share additional health innovation data from Q1 2020, and spotlight the entrepreneurs who have rapidly adapted their platforms and business models to offer up solutions to the coronavirus outbreak.

Sign up for StartUp Health Insider™

Get funding insights, news and special updates delivered to your inbox.