The biggest healthtech deals of 2014

Steven Loeb · January 17, 2015 · Short URL: https://vator.tv/n/3b74

Categories include telemedicine, digital medical devices and personalized medicine

This month, in anticipation of Vator hosting its first ever Splash Health event on February 12th, we've been putting the spotlight on the healthtech space.

Earlier this month Rock Health, put out its 2014 Year in Review Funding Report, showing how much money is flowing into the space, how many deals were made and how the space grew from 2013 to 2014.

Funding for health companies more than doubled year-to-year in 2014. By the second quarter of the year it had already surpassed the totals for 2013, and in the end rose 125% to a total of $4.1 billion. That is significantly higher than the 30% growth rate the space saw in 2013. The report also showed there were six categories that raised significant funding in 2014. 

Healthtech is such a big space, though, with so many categories, that is can be hard to pinpoint which companies have raised the most money. That's why we thought the best way to do it would be to break it down by category, and show you the five biggest investments made in each one.

  • Analytics and big data, which Rock Health defines as "data aggregation and analysis to support a wide range of heathcare use cases.

Total amount raised: $393 million

The five biggest deals:

  1. Flatiron Health, which organizes real-time oncology data to help cancer patients and doctors, raised $130 million in Series B funding led by Google Ventures, with participation from First Round Capital, Laboratory Corporation of America, and angel investors. 
  2. Essence Group Holdings Corporation, the parent company of health management solution Lumerisraised $71 million from undisclosed investors. 
  3. Health Catalyst, a healthcare data warehousing and analytics company, raised $41 million in funding from Sequoia Capital, Norwest Venture Partners,  Kaiser Permanente Ventures,Sorenson Capital, CHV Capital and Partners HealthCare.
  4. Ginger.io, a behavioral health analytics startup, raised $20 million in Series B funding from Dave Schulte, Romulus Capital, Khosla Ventures and True Ventures.
  5. DNAnexus, a  DNA data management and analysis company, raised $15 million from Claremont Creek Ventures, Google Ventures, TPG Biotech, and First Round Capital 

 

  • Health consumer engagement, or "consumer tools for the purchasing of healthcare services or health insurance"

Total amount raised: $323 million

The five biggest deals:

  1. Bswift, a provider of cloud-based technology and services for employee benefits, raised $51 million from Great Hill Partners.
  2. Grand Rounds, a directory for the nation’s top doctors, raised $40 million in a Series B round led by Greylock Ventures, with participation from Venrock and Harrison Metal Capital.
  3. hCentive, a provider of  ACA health insurance exchange technology, raised $35 million from an unnamed strategic investor.  
  4. Maxwell Healthraised $26.4 million in a round led by Adams Street Partners. Cambia HealthSolutions and Schooner Capital, along with Brothers Brook, Vaizra Investments, Tribeca VenturePartners, Catalyst Health Ventures, Serious Change, and Lerer Hippeau Ventures.
  5. Maestro Health, a health benefits service company, raised $17 million from Oak Investment Partners.

 

  • Digital medical devices, or "software/hardware designed to treat a specific disease or condition"

Total amount raised: $312 million

The five biggest deals:

  1. Proteus Digital Health, a digital medicines company, raised $120 million from undisclosed investors.
  2. Proteus Digital Health raised $52 million from undisclosed investors.
  3. Telcare, a connected devices platform for diabetes management, raised $32.5 million in a Series C round of funding led by Norwest Venture Partners with participation from Mosaic Health Solutions, Sequoia and Qualcomm.
  4. Chrono Therapeutics, the creator of the SmartStop wearable smoking cessation product, raised a $32 million Series A round led by Canaan Partners and 5AM Ventures, with participation from Fountain Healthcare Partners, the Mayo Clinic, and GE Ventures.
  5. iRhythm Technologies, a healthcare information services company, raised$17 million Series E financing led by Novo A/S, with Norwest Venture Partners also participating.

 

  • Telemedicine, or "delivery of healthcare services through virtual channels (e.g., phone, video, text)

Total amount raised: $285  million

The five biggest deals:

  1. American Well, a service that connects doctors with patients online for live video visits,  raised $81 million from Anthem Health and Jefferson Health System.
  2. Teladoc, a telehealth provider, raised a $50 million round led by Jafco Ventures, along with FLAG Capital Management, Greenspring Associates, Mellon and QuestMark Partners, Cardinal Partners, HLM Venture Partners, Kleiner Perkins Caufield and Byers, New Capital Partners and Trident Capital.
  3. Specialists On Call, a provider of specialty physician consultations to acute-care hospitals, raised $32 million from Warburg Pincus.
  4. MDLIVE, an on-demand telehealth company, raised $23.6 million from Heritage Group, Sutter Health and Kayne Anderson Capital Advisors. 
  5. Doctor On Demand, a healthcare service that provides video visits with board-certified physicians via smartphone, raised a $21 million dollar round ed by Venrock and joined by Shasta Ventures and Sir Richard Branson.

 

  • Personalized medicine, or "software to support practice of medicine customized to an individual's genetics"

Total amount raised: $268 million

The five biggest deals:

  1. Invitae Corporation, a genetic information company, raised a $120 million from The Broe Group, Decheng Capital, Deerfield Management LLC, OrbiMed, Perceptive Advisors, Rock Springs Capital and Wellington Management Company, Casdin Capital, Genesys Capital, Genomic Health, Randy Scott, Redmile Group and Thomas McNerney & Partners, among others.
  2. Helomics, which develops diagnostics for the oncology field, raised $60 million of financing provided by HealthCare Royalty Partners.
  3. Assurex Health, a personalized behavioral health medicine firm, raised $30 million in funding from American Financial Group, Cross Creek Advisors, Cincinnati Children’s Hospital Medical Center, Sequoia Capital, Claremont Creek Ventures, Mayo Clinic, CincyTech, Allos Ventures and Danmar Capital.
  4. Counsyl, a provider of access to vital information about a person's body, raised $28 million in Series D financing co-led by Rosemont Seneca Technology Partners and Goldman Sachs Asset Management.
  5. Syapse, the company behind the Precision Medicine Data Platform, raised $10 million in Series B financing, led by Safeguard Scientifics with participation from The Social+Capital Partnership.

 

  • Population health management, or "platforms for managing population health under the shift to risk-based payment models"

Total amount raised: $225 million

The five biggest deals:

  1. Alignment Healthcare, a care coordination solution for population health management,  raised a $125 million round from General Atlantic.
  2. Sandlot Solutions, a provider of health care software, raised $23.3 million from Lemhi Ventures, North Texas Specialty Physicians and Santa Rosa Holdings.
  3. Valence Health, a provider of medical management and data analysis to hospitals, raised a $15 million investment led by Heritage Group.
  4. Vivify Health, a remote patient monitoring company, raised $15 million round from Laboratory Corporation of America Holdings (LabCorp) and Envision Healthcare Holdings.
  5. Apixio, a big data healthcare analytics firm, raised $13.5 million in funding from Bain Capital Ventures and several “high-profile” unidentified Silicon Valley angel investors.

(Image source: westchestermagazine.com)

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