Hi there, 
 

We recently released our Q2’20 State of Healthcare report and the funding trends broke records. But before we dig in, we have an important message regarding the future of health.

The upcoming fully virtual Future of Health conference (September 23-25) will feature VIP Analyst Q&A sessions covering Digital Therapeutics, Telemedicine, AI in Healthcare, and Aging & Wellness Tech. We’ll take questions in advance, as well as during the sessions.

To be considered for these briefings, get your ticket for the Future of Health here. All attendees will get access to at least two analyst presentations on our main video content stream. 

You’ll also get to hear from speakers from the World Health Organization, Amwell (leading telehealth platform), Khosla Ventures, Humana, Novartis, the Mayo Clinic Platform, Ancestry & many, many more.
 

Register here and save $300 with code dha300.

Great quarter, digital health

In the State Of Healthcare: Investment & Sector Trends to Watch report, we take a data-driven look at emerging themes, investment trends, and notable startups and investors across the global healthcare landscape. 

We also take a look at quarterly investment trends across healthcare globally — with a particular focus on digital health — before diving 7 sub-sectors, including:

• AI

• Telehealth

• Medical devices

• Digital health in China

• Women’s health

• Mental health

• Regenerative medicine 

Want to see which digital health startups saw the most funding? Or which private companies reached billion-dollar valuations? (Hint: there are 46 unicorns, up from 42 in Q1'20.)

Download the report here to find out, and check out 3 record-breaking takeaways below:

Takeaway 1: Record funding, most deals in 3 quarters

Overall, Q2'20 saw a strong rebound in healthcare funding globally, with record funding of $18.1B invested across 1,272 deals. The rebound was largely driven by upticks in Asia and Europe, likely due to their head starts in Covid-19 reopening efforts. North America funding remained flat QoQ but still showed a 22% YoY growth.

Though not record-breaking, global digital health funding jumped 22% QoQ to $5.8B with 441 deals. The jump was largely driven by a resurgence of funding in Asia.

Takeaway 2: Record telehealth deals and exits

Telehealth saw a record 154 deals in Q2’20, a 23% increase QoQ, as new startups launched and as existing ventures expanded business lines to meet the spike in demand. While several telehealth startups — including AmWell and Mindstrong — raised mega-rounds, aggregate funding dipped by 18% compared to Q1’20, likely due to the flood of smaller, earlier-stage deals.

With 22 M&A transactions, the quarter also set a record for telehealth exit volume. The M&A deals represented a mix of vertical and horizontal consolidation, suggesting businesses are expanding in terms of both breadth and depth of telehealth offerings.

Takeaway 3: Record deals in New York

New York state hit an all-time high with 47 digital health deals in Q2’20. It was also the only state among the top 3 (California, New York, and Massachusetts) to experience QoQ deal growth (47%), though it still held firm at the #2 spot behind California. Comparatively, deals to California- and Massachusetts-based companies saw 17% and 40% QoQ declines to 66 and 20 deals, respectively.

Interestingly, by metro area, New York was actually the most active area for digital health deals in Q2'20, beating out Silicon Valley and Boston.

Want more insights?
 

Join our Managing Healthcare Analyst, Ja Lee, on 8/13 at 2pm EDT for an update on global healthcare funding and investments for Q2'20. During the webinar you’ll learn about:

• How global healthcare funding bounced back with significant growth – setting a new quarterly record.  
• Where telehealth deals skyrocketed during the quarter. 
• Recent developments in the medical device sector. 

Register here.

Since its inception, private health insurance in the US has become increasingly expensive and complicated. Considering the expanding market and abundance of inefficiencies, many startups are tackling the issues by enabling lower-cost, transparent, and comprehensive health plans.

Using the CB Insights platform, we analyze funding trends within the health plans and benefits management space to identify where investors see opportunity. Clients can check out the full brief here.

Stay healthy,

Marc Albanese
 

Q2’20 Was A Record-Breaking Quarter For Healthcare. Global healthcare funding hit new levels as the Covid-19 pandemic boosted interest in health-focused investments. We analyze investment trends to identify areas of interest across healthcare in our State of Healthcare Q2’20 report. Read it here.
 

[Client Research] Private Health Plans And Benefits Management Companies See A Boost In Funding. Startups enabling lower-cost, transparent, and comprehensive private healthcare have seen major funding growth since 2015. We analyze funding trends in the health plans and benefits management space to identify where opportunity exists. Read it here.

GoodRx files for IPO. According to Reuters, the prescription drug price marketplace GoodRx has submitted paperwork with the US SEC and is in the process of hiring advisors for a potential IPO. The company was last valued at $2.8B in 2018. 

Reuters
 

Long live telehealth. President Trump signed an Executive Order proposing a permanent extension of telehealth benefits to Medicare beneficiaries in rural communities. The order also calls for a plan to improve the physical and communications healthcare infrastructure available to rural Americans.

ABC News
 

DTC genomics tackling cancer. GSK has begun Phase I clinical trials of a cancer drug that emerged from its drug discovery collaboration with 23andMe. The antibody-based drug is the first from the 2-year-old program to advance into clinical trials. 

STAT News

Oscar expansion. Following its $225M raise in June, Oscar Health announced plans to expand into 19 new markets and roll out a virtual primary care benefit to its members. The new benefit includes unlimited tele-primary care visits as well as certain prescriptions, lab tests, and diagnostic imaging orders for zero copay.

MedCity News

Biggest telehealth deal of the year. Teladoc Health and Livongo announced plans to merge in a deal valued at $18.5B, making it the largest telehealth deal of 2020 thus far. The combined company is poised to offer industry-leading virtual care and chronic condition management.

Biggest medtech deal of the year. Siemens Healthineers plans to acquire Varian Medical Systems for $16.4B, making it the largest medtech deal of the year. The deal, which builds upon a long-standing partnership between the two companies, is expected to enhance Siemens’ cancer care portfolio.
 

Full gRown unicorn. Telehealth company Ro closed a $200M Series C round from both new and existing investors. The latest deal values the startup at $1.5B, up from $500M at the time of its Series B. The new unicorn has raised $376.5M in total disclosed funding to date.
 

Liquid bio is THRIVE-ing. Cancer liquid biopsy company Thrive Earlier Detection raised a $257M Series B round led by Casdin Capital and Section 32. The startup plans to use the proceeds to advance its CancerSEEK test into a large registrational clinical trial. 
 

New unicorn on the block. Health intelligence and data analytics startup, Sema4, recently gained unicorn status with a $121M Series C round led by BlackRock, with Deerfield Management, Oak HC/FT, Blackstone, Section 32, and others. The company is now valued at $1.1B.

Gender data disparities impact Covid-19. Melinda Gates discusses how the Covid-19 pandemic is affecting women differently than men. In this article, she explores how the gaps in health and economic data collection could shape the future of women’s health, education, and professional development. 

STAT