Startup Health Insights 2016: The Health Moonshot Movement

2016 was the beginning of the health sector’s ‘Moonshot Movement’. Thousands of entrepreneurs, industry leaders and investors, coupled with a generation of new industry entrants started to rethink the future of health. From Vice President Joe Biden’s Cancer Moonshot to speed up the progress in ending cancer as we know it, to The Chan Zuckerberg Initiative to cure all disease within 100 years, billions of dollars are being committed to health innovation - a mindset that exponential progress is possible.

1. Record-Breaking Digital Health Funding: Nearly $8 Billion was invested in over 500 digital health companies alone. This staggering figure has fueled innovation across the board in medicine, infrastructure and consumer-driven health.

2. New Investors Pour In: More than 200 new investors entered the funding ecosystem in 2016, putting the total unique investors at almost 900. These investors come from a variety of institutions and geographies, beyond the traditional VC and angel investor, ranging from Fortune 500 to Private Equity.

3. Investors Support Early Stage Innovation: Investors continue to support early-stage startups with hundreds of Seed and Series A Rounds this year.

4. A Year of Mega Deals: Big deals dominated 2016 with almost 25% of all funding invested into five deals. It’s no coincidence that companies receiving large amounts of capital like Onduo or Human Longevity Inc. are examples of companies with bold visions, setting out to achieve Moonshots. 

5. Delivering Care & Content Receives Most Funding: Almost 160 patient/consumer experience focused companies received funding in 2016 - between 2-3x as many as other subsectors. Patient engagement and behavior change remain largely unsolved problems and while these early stage companies continue to experiment, we look forward to new models and strategies emerging that incorporate lessons learned.

Download the 2016 Year End Report