StartUp Health’s 2015 Q3 Funding Insights Report

Overall 2015 funding year to date is slightly behind that of the same time last year. After a slower start to the year, Q3 funding increased and is on par with Q3 2014.

  1. Signs of a Maturing Market: The market continues to see a steady increase in mid stage (Series B and C) deals with 31%, as early stage deals hold strong with 64% of this year’s volume. With the continued growth of Series A rounds, we predict that follow-on rounds will increase in pace as entrepreneurs are able to prove significant traction to gain investors’ confidence.
     
  2. A Diverse Investor Landscape: A few years ago, it was incredibly rare to see traditional tech VCs and corporate VCs investing in healthcare. Today, both of these groups are integral in the market. This quarter, however, saw the advent of a non-venture investment firm and a holding company entering the ranks of top investors for the year.
     
  3. Personalized Medicine Gains Traction: Genomics and diagnostics as subsectors make up a large portion of both early and late stage deals. As cancer paves the way for personalized DNA-based therapies, we expect to see opportunities focused on newborns, immunology and infectious disease begin to gain steam.
     
  4. Wellness and Patient / Consumer Experience Sectors Are on Top: Although big data still continues to garner a lot of interest from investors, wellness solutions and patient / consumer experience companies have picked up momentum.
     
  5. Global Innovation: More than 7,700 startups around the world are developing solutions in digital health, based on StartUp Health Insights data. Innovation continues to thrive as borders between technologies, talent and nations blur to spur real change in medical systems at home and abroad.

Download 2015 Q3 Report