Dutch Incubation Forum / The Hague / 11.12.2014/@unitystoakes

The Re-imagination of Healthcare

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“There has never been a better time to be a

healthcare innovator”

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TRANSFORMED INDUSTRIES

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“Creative Destruction” popularized by Joseph Schumpeter in Capitalism, Socialism and Democracy. Richard Foster and Sarah Kaplan applied the concept directly to healthcare in Creative Destruction. Dan Sullivan and The Strategic Coach simplified the concept further in his Creative Destruction Series. Eric Topol, MD, recently wrote a book The Creative Destruction of Medicine.

Healthcare

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The Creative Destruction of Healthcare

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Opportunity The Golden Age of Entrepreneurship

Change Healthcare

Reform

Technology Mobile & Digital Health

Acceleration Chronic Disease,

Aging & Cost

TODAY

The Conditions Are Set for an Epic Decade

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Healthcare Transformers

The Re-imagination of Healthcare

The Network Effect

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5 Transformation Requirements: !

1. Army of Entrepreneurs 2. The Network Effect 3. Unique Stakeholder Partnerships 4. Global Cross-Pollination 5. Batteries Included Leaders

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Building an Army of Entrepreneurs to Reinvent

Healthcare

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1,000

100,000healthcare startups

innovators

10years

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StartUp Health Academy3 Year

Coaching Program

StartUp Health Network

Healthcare Transformers

Investors, Startups, Partners, Customers,

Government

Growing Community of Entrepreneurs and Innovations

Transforming Healthcare

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A New Model for Accelerating Innovation

An International Program & Growing Community

10CONFIDENTIAL

UNITED STATES • AUSTIN • BALTIMORE • BOSTON • CHICAGO • COLUMBUS • DENVER • DETROIT FORT LAUDERDALE • GREEN BAY • HOUSTON • KANSAS CITY • LONG BEACH • MALIBU • MIAMI NEW YORK CITY • PALO ALTO • PHILADELPHIA • PITTSBURGH • PORTLAND • SALT LAKE CITY SAN FRANCISCO • SAN JOSE • SEATTLE • WASHINGTON, DC • BRAZIL • PONTA GROSSA • RIO DE JANEIRO • CANADA • CALGARY • TORONTO • VANCOUVER • INDIA • BANGALORE • IRELAND DUBLIN • GALWAY • ISRAEL • ASHKELON • SPAIN • BARCELONA • PAMPLONA

84 COMPANIES FROM 7 COUNTRIES AND MORE THAN 45 CITIES

OCTOBER 2014

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Calling All Changemakers ~

Use Your Talent to Transform Healthcare!

www.startuphealth.com unity@startuphealth.com

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Appendix

Insights and Trends

2014 is shaping up to be another record year for digital health, with funding in the first three quarters already far exceeding the total amount invested in 2013. Our quarterly report gives a snapshot of the sector’s “top 10” (give or take) investors, subsectors, deals and more. Here are eight trends we’re watching:

13

1 2014 Funding Reaches Record Levels: Through Q3, 347 companies have raised $5B from investors including Founders Fund, Khosla Ventures and Sequoia Capital. 2014 is on track to nearly double the total invested in 2013.

2 Deal Sizes Increase: Investment size continues to climb as the market matures and more private equity firms pour capital into the sector. As startups raise more cash, speculation is also building about the next wave of IPOs.

3 M&A Activity Picks Up: Even though summer activity tends to be slow, Q3 saw 15 acquisitions by companies including Google, Practice Fusion, Cerner and WebMD/Medscape.

4 ACA Spurs Innovation: Health reform continues to drive changes in the industry and encourages startup activity in the sector.

5 Consumerism Grows: As a result of high-deductible plans, price transparency and new tech solutions, patients are becoming more empowered. Brands like Apple, Facebook and Google are making bigger waves in healthcare.

6 Privacy Concerns Mount: As the Apple iCloud hacking scandal underscored, keeping health data safe in the cloud is becoming more top-of-mind for consumers and companies.

7 Wearables Move Into the Mainstream: We’re not there yet, but the debut of the Apple Watch, Basis Peak, Moto 360 and Samsung Gear Live show that wearables are clearly moving closer to the mainstream.

8 Global Innovation Accelerates: More than 5,000 startups around the world are developing new solutions in digital health, based on data from the StartUp Health Network. Increased % of revenue outside of US.

Insights and Trends

14

9 High Deductible Plans: People no longer outsourcing health decisions to employer, government, doctor. Consumers paying attention to price now that they are responsible and sharing risk.

10 Transparency: . Consumers demanding price transparency and host of new solutions entering market to deliver. Currently 400% price variance on certain procedures / drugs.

11 New Customers: 25 Million Americans gaining health insurance in next 3 years. New customers. 8,000 Americans eligible for medicare each day.

12 Analytics to Outcomes: Growing demand for predictive modeling….analytics to drive outcomes…precision medicine. becoming reality. Emerging new solutions entering market everyday.

13 Service and “Retail” Health Solutions: . Pharma repositioning beyond pill to become service companies. Delivery moving to retail environments. 14% growth….$1.4T vs. hospital growth of 2%.

14 Corporate Venture: From 10% to 35% of early stage funding in last 2 years shifted from VCs to corporate venture.

15 Consolidation: Massive provider consolidation due to intense reimbursement and cost pressure.

16 Chronic Disease: Primary patient demand driven by chronic disease…but wellness, prevention market emerging.

Insights and Trends

15

17 Hospitals of the Future - Everywhere: Care shifting outside of hospital to home, clinics, hubs, urgent care, etc..

18 Home Health: . Home care becoming the center of the universe. Hundreds of new companies being created to deliver home care.

19 Leadership Turnover: Wave of management changes.…new leaders and others riding out tenure.

20 Rise of the Machines: Artificial intelligence coming to healthcare. Watson just the beginning…

21 Sensors on / in Everything: . Connected health….driving need for better data analytics.

22 New Frontier: The Brain: Brain health opening up world of innovation as significant as genomics revolution.

23 Early Stage Boom: More than 100 Healthcare accelerators, 5,000 startups…talk of bubble. Some models working.others not…

24 New Entrants: Who is the healthcare company future? Every company becoming healthcare co…matter of productivity, bottom line.. huge growth opp for small, medium, large businesses. Competition from everywhere..

Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC

DIGITAL HEALTH FUNDING SNAPSHOT (YTD)

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Fund

ing

($B

)

$1B

$3B

$4B

$5B

Dea

ls

150

300

450

600

2010 2011 2012 2013 YTD 2014

Deals Funding

$5.0B

$2.8B$2.2B

$1.7B

$1.1B

347

533

447

242

142142

242

447

533

347

DEALS & FUNDING

Funding in the first three quarters of the year has skyrocketed past the total invested in 2013. Although deal volume is lower, investors are putting more money in fewer startups, indicating the market’s gradual maturation.

INVESTORS MOMENTUM

Source: StartUp Health Insights | www.startuphealth.com/insights Disclosure: Information, data and figures represent publicly available data. © 2014 StartUp Health, LLC

THE TOP 10 MOST ACTIVE SUBSECTORS OF 2014 (YTD)

Big data is clearly a big winner. Even if companies don’t primarily identify with the subsector, they’re encouraged to show a big data and analytics play to attract investor support.

DEALS & FUNDING

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Subsector $ Invested # of Deals Largest Deals

1 Big Data / Analytics $1.17B 77 • Flatiron Health • Alignment Healthcare

2 Navigating the Care System $794M 40 • Preventice • Oscar

3 Practice Management $598M 26 • Privia Health • Zenefits

4 Sensors / Diagnostics $498M 25 • NantHealth • Flatiron Health

5 Patient Engagement $440M 38 • Preventice • One Medical

6 Consumer Health $439M 46 • Zenefits • Bswift

7 Insurance $381M 9 • Oscar • Zenefits

8 Vital Sign Monitoring $284M 17 • Proteus Digital Health • Omada Health

9 Aging with Vitality $242M 14 • NantHealth • Audax Health

10 Genomics $200M 14 • Human Longevity • Quantapore

Note: Investments in the above subsectors are not mutually exclusive as deals are tagged with multiple subsectors.

INVESTORS MOMENTUM