CB-Insights Healthcare-Report-Q3-2021

Medical Devices

GLOBAL: Q3 2021

101

YTD funding already surpasses 2020 by 6%, despite 26% fewer deals

$20.0B 1,185 1,338 1,611 1,700 1,679 1,755 Funding 1,800
$18.0B $7.7B $8.2B $13.5B $15.6B $12.1B $16.9B $17.9B 1,600
$16.0B Deals 1,400
$14.0B 2015 2016 2017 2018 2019 2020 1,300 1,200
$12.0B 1,000
$10.0B 2021 800
YTD 600
$8.0B 400
$6.0B 200
$4.0B 0
$2.0B
$0.0B

State Of Healthcare | Collection Spotlights | Medical Devices 102

Medical device funding falls 27% from Q2’21’s peak, despite deal growth

$9,000M 600

$8,000M 510 $7,675M

$7,000M 455 435 444 D5e0a0ls
$6,000M 391 474
$5,000M 298 294 299 294 431 416 415 426 432 422
400
404 410 402 410 404
Funding
380 384 $5,600M

363 $5,515M 300

337 334 $4,960M $4,748M $4,577M 200
304 $4,604M
100
$4,000M $3,946M $3,209M $3,299M
$3,000M
$2,000M $3,414M $3,249M $3,105M $3,340M $3,371M
$3,172M $2,920M

$2,461M $2,337M $2,326M $2,747M
$2,469M

$2,078M $1,794M $1,949M

$1,388M $1,572M

$1,000M

$0M 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2015 2016 2017 2018 2019 2020 2021

State Of Healthcare | Collection Spotlights | Medical Devices 103

Asia funding jumps 54% in Q3'21 while US and Europe fall QoQ

US $3.1B Asia Europe Canada LatAm All Other Regions

$4.3B

$3.0B$3.0B$3.0B

$2.2B$2.2B $2.0B $0.4B

$1.9B

$1.7B

$1.2B $1.3B
$0.7B $1.0B

$0.6B $0.8B

$0.6B$0.5B $0.4B $0.0B

$0.3B $0.0B$0.0B$0.0B$0.0B$0.2B$0.1B $0.0B $0.1B

$0.0B$0.0B$0.0B$0.0B$0.0B$0.0B $0.0B$0.0B$0.0B$0.0B$0.0B$0.0B

Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3
2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021

State Of Healthcare | Collection Spotlights | Medical Devices 104

Asia deal share surpasses the US for the first time in Q3'21, at 42%

18% 14% 15% 16% 16% 18% 17% 22% 15% 16% 16% 18% 20% 17% 15% 19% 18% 19% 17% 18% 22% 23% 19% 21% 24% 26% All Other Regions, 2%
14% 14% 16% 15% 24% 17% 23% 23% 20% 17% 25% 26% 25% 26% 27% 29% 25% 24% 26% 29% 25% 29% 32% 30% Canada, 2%
LatAm, 0%
32% 31% Europe, 14%

Asia, 42%

63% 68% 66% 66% 55% 62% 57% 51% 62% 62% 55% 53% 50% 52% 55% 48% 50% 51% 52% 48% 49% 45% 46% 44% 40% 40% US, 40%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2015 2016 2017 2018 2019 2020 2021

State Of Healthcare | Collection Spotlights | Medical Devices 105

Average deal size in 2021 YTD is 54% higher than it was in 2020

$20M

$13M $13M

$11M $10M

$8M $8M
$2M
$3M $3M $3M $4M $5M

$2M 2021
YTD
2015 2016 2017 2018 2019 2020
Average Deal Median Deal 106

State Of Healthcare | Collection Spotlights | Medical Devices

Early-stage deals retain highest deal share at 53%

24% 22% 20% 19% 17% 18% Other, 13%
10% 10% 11% Late-stage, 11%
10% 16% 16% 21%
11% 12% Mid-stage, 22%
55% 57% 51%
15%
16% 13% 2018 2019 2020

49% 52% 55% Early-stage, 53%

2015 2016 2017 2021
YTD

State Of Healthcare | Collection Spotlights | Medical Devices 107

Top 10 equity deals in Q3'21

Company Round Amount Round Latest Valuation Select Investors Country % of Total
Date Funding
1 Zhiyuan Zhongan 5.5%
2 Imperative Care $310M Corporate Minority N/A ZhongAn Insurance China 4.6%
3 Exo 2021-09-16 3.9%
4 Neuralink 3.7%
$260M Series D Bain Capital, Ally Bridge Group, United States
Intervenn 2021-07-15 $176M Ascension Ventures, D1 Capital 3.6%
5 Biosciences
Partners, AMED Ventures 3.6%
2.7%
$220M Series C BlackRock, RA Capital
2021-07-29 $594M Management, Sands Capital, Pura United States 108

Vida Investments, Avidity Partners

$205M Series C Google Ventures, Founders Fund, United States
2021-07-30 $97M Valor Equity Partners, DFJ Growth

Fund, VY Capital

True Ventures, Highside Capital

$201M Series C $57M Management, SoftBank Group, United States
2021-08-02 Amplify Partners, Heritage Provider

Network

6 OrbusNeich $200M Series A Unknown, Shenzhen Capital Group,
Mammoth 2021-08-30 N/A CCB International, Galaxy Capital, Hong Kong

7 Biosciences Wanhui Capital

$150M Series D $1.0B Mayfield, Redmile Group, Decheng United States
2021-09-09 Capital, Foresite Capital, Plum Alley

State Of Healthcare | Collection Spotlights | Medical Devices

Top 10 equity deals in Q3'21

Company Round Amount Round Latest Valuation Select Investors Country % of Total
Date Funding
Shukun 1.9%
8 Technology $108M Series C Sequoia Capital China, Primavera China
2021-08-16 Capital Group, Marathon Venture 1.8%
$600M Partners, Jane Street Group,
Goldman Sachs Asset 1.8%
Management 1.8%
1.8%
Vivo Capital, Farallon Capital
1.8%
9 InBrace $102M Series D $198M Management, Novo Ventures, United States
2021-09-08 venBIO, Marshall Wace Asset 109

Management

Sequoia Capital China, Green Pine

10 Vision X $100M Series B N/A Capital Partners, HighLight Capital, China
10 quip 2021-09-30 Sherpa Venture Capital, 3H Health
10 Pulse Imaging
Investment

$100M Series B $168M Cowen United States
2021-08-31

Philips, Hillhouse Capital

$100M Series C N/A Management, Boyu Capital, Insight China
2021-08-02 Capital, Goldman Sachs Asset

Management, Linden Asset

Eight Roads Ventures, Yunfeng

10 Nanos Medical $100M Series D N/A Capital, Marathon Venture China
2021-07-01 Partners, 6 Dimensions Capital,

Jieshi Investment

State Of Healthcare | Collection Spotlights | Medical Devices

1 new unicorn born in Q3’21 brings the global herd to 19

20 21

18 18 18 19 19 18 Total unicorns, 19

17 17 17 17 16 17

13
11

88
77 7777
6

54
3 33
22
11 1 1 11 11
1 New unicorns, 1
0 0000 0 00 0 00

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2015 2016 2017 2018 2019 2020 2021

State Of Healthcare | Collection Spotlights | Medical Devices 110

YTD exits already surpass 2020 exits, driven primarily by record M&A

M&A, 137

105 112 94 101
88 77
33 37 44
35 38 1 IPO, 39
34 2018 0 0
2019 2020 SPAC, 7
2015 0 0
2016 2017 2021
YTD

State Of Healthcare | Collection Spotlights | Medical Devices 111

M&A exits jump by 74% QoQ, reaching an all-time high of 61 in Q3’21

M&A, 61

42
37 34

30 30 31
27
28 26 25 25 24 23 22 26 25
24 24
24 19 22 20 19
17
8 17
Q1
12 13 11 13 11 15 13 11 10 13 IPO, 16
8 SPAC, 4
9 10 8 9 9 10 10
14
6 6 6 7 65

3 1 21

00000000000000 00000000

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2015 2016 2017 2018 2019 2020 2021

State Of Healthcare | Collection Spotlights | Medical Devices 112

Top 10 investors in Q3'21 by company count

Company Deals Investor Group Country
11 VC China
1 bioVENTURE 10 VC China
2 Sequoia Capital China 7 VC United States
3 SOSV 5 VC China
4 Qiming Venture Partners 5 VC China
4 BioTrack Capital 5 VC China
4 Oriental Fortune Capital
113
State Of Healthcare | Collection Spotlights | Medical Devices

Top 10 investors in Q3'21 by company count

Company Deals Investor Group Country
4 VC China
7 Sinovation Ventures 4 VC China
4 VC China
7 Matrix Partners China 4 Private equity China
4 VC China
7 China Growth Capital 4 Angel United States
4 VC China
7 Sinopharm Capital
4 VC China
7 Sherpa Venture Capital
4 VC China
7 St. Louis Arch Angels

7 Legend Capital

7 Suzhou High Tech Venture Capital
Group

7 Addor Capital

State Of Healthcare | Collection Spotlights | Medical Devices 114

Biopharmaceuticals

GLOBAL: Q3 2021

115

YTD funding is nearly at 2020 levels, despite 44% fewer deals

$40.0B 1,427 1,390 $36.7B Funding 1,600
$35.0B $25.8B $23.8B 1,492 $36.2B 1,400
$30.0B
$25.0B 975 1,058 1,215 2018 2019 2020 Deals 1,200
$20.0B $13.7B $13.6B $15.2B 837 1,000
$15.0B 2016 2017 800
$10.0B 2015
600
$5.0B
$0.0B 400

200

0

2021
YTD

State Of Healthcare | Collection Spotlights | Biopharmaceuticals 116

Deals and funding declined for the second quarter in a row — with deals
reaching a record low — in Q3’21

$18.0B 450

407 $16.3B 400

$16.0B 383 360 368 374 350
364 356
355 357 300
343
$14.0B 337 331 331 Deals
323 252019
317 312 F2$u09n0.d0inBg

$12.0B $10.9B 150

267 252 272 270 260 256 263 $10.3B 100

$10.0B 230 226 $9.4B $9.8B 261 50

$8.0B $7.5B $7.1B
$6.0B
$6.1B $6.1B $6.1B $6.6B

$5.5B $5.8B $5.6B $5.8B

$4.0B $3.4B $3.8B $3.5B $3.9B $4.0B $3.7B $3.4B
$2.0B
$3.0B $2.7B $3.0B $2.6B

$0.0B 0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2015 2016 2017 2018 2019 2020 2021

State Of Healthcare | Collection Spotlights | Biopharmaceuticals 117

In Q3’21, Asia and Europe funding fell to multi-quarter lows

US Asia Europe LatAm Canada All Other Regions

$10.7B

$5.8B

$5.0$B6.2$B5.8$B5.4B $5.6B

$1.9B $1.0B
$2.8$B3.2$B3.2$B2.7B
$2.2$B2.3B
$1.2$B1.8B $0.7$B1.4$B1.4$B1.2B $0.0B $0.3B $0.0B

$0.0$B0.0$B0.0$B0.0$B0.0$B0.2B $0.2$B0.1$B0.2$B0.1$B0.1$B0.2B $0.0$B0.0$B0.0$B0.0$B0.0$B0.0B

Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3
2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021

State Of Healthcare | Collection Spotlights | Biopharmaceuticals 118

The US takes its highest quarterly deal share since Q1'20

15% 14% 21% 14% 16% 22% 13% 24% 20% 21% 17% 19% 16% 15% 13% 17% 19% 17% 20% 19% 17% 22% 18% 20% 15% 16% All Other Regions, 0%
Canada, 3%
12% 9% 9% 13% 21% 14% 14% 16% 15% 13% 15% 17% 19% 23% 21% 21% 24% 15% 21% 21% 16% 20% 24% 25% 24% 26% LatAm, 0%
Europe, 16%

Asia, 22%

67% 72% 67% 66% 60% 58% 68% 56% 60% 63% 61% 59% 59% 58% 59% 57% 52% 60% 54% 56% 62% 54% 54% 52% 57% 51% US, 58%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2015 2016 2017 2018 2019 2020 2021

State Of Healthcare | Collection Spotlights | Biopharmaceuticals 119

Average deal size in 2021 YTD is 74% higher than it was in 2020

$47M

$27M

$15M $15M $14M $21M $19M $21M
$4M $4M $5M $7M
$10M 2021
YTD
$6M
120
2015 2016 2017 2018 2019 2020
Average Deal Median Deal

State Of Healthcare | Collection Spotlights | Biopharmaceuticals

Mid-stage deal share is tracking at a record high, edging out early-stage
deal share for the first time

19% 24% 22% 19% 19% 20% Other, 15%
Late-stage, 11%
10% 9% 10% 11% 9%
9% Mid-stage, 37%

20% 17% 19% 20% 20% 26%

51% 50% 51% 51% 50% 45%
2019 2020
Early-stage, 36%

2015 2016 2017 2018 2021
YTD

State Of Healthcare | Collection Spotlights | Biopharmaceuticals 121

Top 10 equity deals in Q3'21

Company Round Amount Round Latest Valuation Select Investors Country % of Total
Date Funding
7.8%
1 Abogen $700M Series C Qiming Venture Partners, Lilly Asia China 4.9%
2021-08-20 N/A Ventures, Boyu Capital, Yunfeng 2.9%
2.2%
Capital, Invesco 2.2%

2 Laronde Series B Flagship Pioneering, T. Rowe Price, 122
2021-08-30
$440M $33M Invus Group, BlackRock, Fidelity United States

Investments

Sonoma Google Ventures, ARCH Venture
Biotherapeutics
3 $265M Series B $51M Partners, Frazier Healthcare United States
2021-08-04 Partners, Casdin Capital, Lilly Asia

Ventures

True Ventures, Highside Capital

4 Intervenn Biosciences $201M Series C $57M Management, SoftBank Group, United States
2021-08-02 Amplify Partners, Heritage Provider

Network

5 Opentrons $200M Series C $1.8B Khosla Ventures, SoftBank Group United States
2021-09-23

State Of Healthcare | Collection Spotlights | Biopharmaceuticals

Top 10 equity deals in Q3'21

Company Round Amount Round Latest Valuation Select Investors Country % of Total
Date Funding
6 Deep Genomics 2.0%
7 GentiBio Khosla Ventures, True Ventures, 1.7%

$180M Series C N/A Fidelity Investments, SoftBank Canada 1.7%
2021-07-28 Group, Alexandria Venture
1.7%
Investments 1.6%

$157M Series A OrbiMed Advisors, Novartis, Matrix 123
2021-08-11 N/A Capital Management, RA Capital United States

Management, JDRF T1D Fund

8 Artios Pharma $153M Series C Novartis Venture Funds, SV Health United Kingdom
2021-07-27 Investors, Pfizer Venture
$256M Investments, Life Sciences
Partners, Omega Fund
Management

9 Mammoth Biosciences $150M Series D $1.0B Mayfield, Redmile Group, Decheng United States
Nutcracker 2021-09-09 Capital, Foresite Capital, Plum Alley

10 Therapeutics $145M Series C $990M ARCH Venture Partners, Bluebird United States
2021-09-07 Ventures

State Of Healthcare | Collection Spotlights | Biopharmaceuticals

2 new unicorns born in Q3’21 bring the global herd to 9

10 10

9 9 9 Total unicorns, 9
8 88

7777777777 7 7 7 7 77

6

5
3

2 1 111 1 11 New unicorns, 2
11

00 000000 0 0000 00

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2015 2016 2017 2018 2019 2020 2021

State Of Healthcare | Collection Spotlights | Biopharmaceuticals 124

Exit activity has already reached 2020 levels — and could surpass them by
33% by year-end

124

IPO, 99

81 83 84 M&A, 86

78

61 60 64 65

55 52

52

2015 0 0 1 4 4 SPAC, 8
2016 2017 2018 2019 2020
2021
YTD

State Of Healthcare | Collection Spotlights | Biopharmaceuticals 125

IPOs and M&A exits dip slightly QoQ, while SPACs hold steady

44

33 34 34
34

26 27 29 IPO, 31

27

24 23 23 24 21 22 23 M&A, 25

20 19 19 19 19 19 18 18
14
20 14 16 17 16 16 14 17 17
16 10
12 14 13 14 10 11 10 20 14
11 9 17 14 11 10

12

1 112 1323 SPAC, 3

00000000000000 0 00

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2015 2016 2017 2018 2019 2020 2021

State Of Healthcare | Collection Spotlights | Biopharmaceuticals 126

Top 10 investors in Q3'21 by company count

Company Deals Investor Group Country
13 Asset/investment management United States
1 RA Capital Management 12 VC United States
2 OrbiMed Advisors 11 CVC United States
3 Alexandria Venture Investments 9 Private equity United States
4 Logos Capital 7 Asset/investment management United States
5 Invus Group 7 VC United States
5 Surveyor Capital 7 VC United States
5 Casdin Capital 6 Private equity United States
8 Deep Track Capital 6 VC United States
8 Khosla Ventures 6 VC Netherlands
8 Life Sciences Partners 6 Asset/investment management United Kingdom
8 Janus Henderson Investors 6 CVC China
8 Lilly Asia Ventures

State Of Healthcare | Collection Spotlights | Biopharmaceuticals 127

Digital Therapeutics

GLOBAL: Q3 2021

128

YTD funding surpasses 2020 by 79%, despite deals holding steady

$2,500M 100
90
$2,000M 48 61 76 72 88 80 Funding 80
$1,500M $387M $482M $416M $632M $1,195M $2,136M 70
$1,000M 2018 $641M 60
2019 2020 Deals 50
$500M 80 40
30
$0M 2021 20
2015 YTD 10
0

2016 2017

State Of Healthcare | Collection Spotlights | Digital Therapeutics 129

Funding declines for the second quarter in a row in Q3’21

$900M 28 $847M 27 30
$800M 27 26
$700M Deals
$600M 24 $767M 27
$500M 23
$400M 23 22 25
$300M 22 20 21
$200M 20
$100M 20 18 19
13 16 16 Funding
$0M 15 16 16 14 $15523M
12
14 $396M

11

$297M $311M $298M 10
5
8 $257M

7 $212M $182M $190M

$164M $178M $128M $167M
$81M $35M
$130M $106M $126M
$40M
$81M $83M $78M $63M $92M

$59M

0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2015 2016 2017 2018 2019 2020 2021

State Of Healthcare | Collection Spotlights | Digital Therapeutics 130

US funding falls sharply as both Asia and Europe grow QoQ in Q3'21

US $374M Asia Europe Canada All Other Regions

$683M
$646M

$236M$245M $216M

$175M$190M

$148M

$43M $45M$26M$36M $106M $0M

$71M $0M $0M $0M $0M $0M $5M

$6M $27M $6M $5M $10M $8M $24M $0M

$0M $0M $0M $0M $0M

Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3
2020 2021 2020 2021 2020 2021 2020 2021 2020 2021

State Of Healthcare | Collection Spotlights | Digital Therapeutics 131

Asia deal share ticks up as US deal share falls 4 percentage points

12% 14% 6% 0% 10% 4% 14% 21% 17% 17% 33% 14% 12% 11% All Other Regions, 0%
0% 19% 14% 13% Canada, 0%
15% 8% 6% 0% 9% 21% Asia, 19%
25% 8% 12% 6% 25% 9% 13% 25% 19% 21% Europe, 22%
12%
14% 25% 37% US, 59%
6% 14% 17% 22%
30% 12% 14% 14% 33% 38%

14%

38%

42% 25%

77% 75% 86% 83% 69% 69% 82% 73% 87% 62% 69% 68% 65% 64% 59% 64% 57% 65% 63%
60% 52% 50%
52%

42% 42%

32%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2015 2016 2017 2018 2019 2020 2021

State Of Healthcare | Collection Spotlights | Digital Therapeutics 132

Average deal size in 2021 YTD is 58% higher than it was in 2020

$30M

$19M

$9M $10M $11M $8M $9M $10M
$2M $2M 2020
$7M 2021
YTD
$5M
133
$2M $3M

2015 2016 2017 2018 2019
Average Deal Median Deal

State Of Healthcare | Collection Spotlights | Digital Therapeutics

Mid- and late-stage deal shares continue to climb, pushing early-stage deal
share to a new low

4% 5% 7% 7% 5% 5% Other, 6%
6% 5% 5% 6% 6% 9% Late-stage, 12%
17% 18% 9% 15% 18%
Mid-stage, 28%
25%

73% 72% 79% 72% 72%

61% Early-stage, 54%

2015 2016 2017 2018 2019 2020 2021
YTD

State Of Healthcare | Collection Spotlights | Digital Therapeutics 134

Top 10 equity deals in Q3'21

Company Round Amount Round Latest Valuation Select Investors Country % of Total
Date Funding
1 Woebot Health 17.2%
2 Oviva New Enterprise Associates, 15.3%
3 Quit Genius 12.2%
$90M Series B $208M BlackRock, Owl Ventures, Jazz United States 11.7%
Mahana 2021-07-21 Venture Partners, Kicker 9.6%
4 Therapeutics
5 Statespace Ventures 135

$80M Series C F-Prime Capital, Eight Roads United Kingdom
2021-09-01 $96M Ventures, Sofina, MTIP,

Temasek Holdings

$64M Series B Octopus Ventures, Atomico,
2021-07-19 $225M Kinnevik, StartUp Health, Triple United States

Point Ventures

$61M Series B Lux Capital, Gurnet Point
2021-08-11 $15M Capital, Jazz Venture Partners, United States

KKCG, Main Street Advisors

Series C Bessemer Venture Partners,
2021-09-15
$50M $33M Khosla Ventures, FirstMark United States

Capital, Lux Capital, June Fund

State Of Healthcare | Collection Spotlights | Digital Therapeutics

Top 10 equity deals in Q3'21

Company Round Amount Round Latest Valuation Select Investors Country % of Total
Date Funding
6 Meru Health 5.7%
7 MedRhythms $30M Series B $35M Industry Ventures, J.P. Morgan United States 4.8%
8 Xealth 2021-09-23 & Co., Freestyle Capital, BOLD 4.6%
9 Sweetch Health Capital Partners, Leksell Social 3.8%
10 Dopavision Ventures 2.7%

Series B Advantage Capital, 5Y Capital, 136
2021-07-28
$25M $16M Werth Family Investment United States

Associates

MemorialCare Innovation

$24M Series B $33M Fund, Providence Ventures, United States
2021-09-21 Banner Health, Froedtert,

UPMC Enterprises

$20M Series A Philips, Entree Capital, Noaber
2021-07-19 $17M Foundation, Qure Ventures, Tal Israel

Capital, FinTLV

$14M Series A Seventure Partners, Novartis, Germany
2021-07-14 $8M Boehringer Ingelheim Venture

Fund, Ababax Health

State Of Healthcare | Collection Spotlights | Digital Therapeutics

Q3'21 sees no new unicorn births

4

3

Total unicorns, 3

22

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 11 1
1

000000000000000000 New unicorns, 0

0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2016 2017 2018 2019 2020 2021

State Of Healthcare | Collection Spotlights | Digital Therapeutics 137

YTD exits already surpass 2020, driven primarily by record M&A

M&A, 9

7

3 3 3 3 2 IPO, 2
2016 2 SPAC, 1
0 1 0
2017 0 0 2020 2021
2019 YTD
2018

State Of Healthcare | Collection Spotlights | Digital Therapeutics 138

Q3'21 sees a first SPAC exit

5
4

M&A, 3

22 2 22 22

111 1 11 1 1 SPAC, 1
1
0 0 0 0 0 0 0 0 IPO, 0
00000 Q1 Q3 Q1 Q2 Q3 Q4 Q1 Q2
Q3 Q4 Q2 Q4 Q2 Q4 Q3
2021
2018 2019 2020

State Of Healthcare | Collection Spotlights | Digital Therapeutics 139

Top 10 investors in Q3'21 by company count

Company Deals Investor Group Country
United States
1 Jazz Venture Partners 3 VC United States
United States
2 Alumni Ventures Group 2 VC United States

2 Gaingels 2 Angel

2 Lux Capital 2 VC

State Of Healthcare | Collection Spotlights | Digital Therapeutics 140

Top 10 investors in Q3'21 by company count

Company Deals Investor Group Country
1 Asset/investment management Sweden
5 Leksell Social Ventures 1 VC United States
5 F-Prime Capital 1 Angel United States
5 Brown Angel Group 1 VC South Korea
5 STIC Ventures 1 VC Netherlands
5 Noaber Foundation 1 CVC Brazil
5 Kortex Ventures 1 VC Singapore
5 OpenSpace Ventures 1 CVC Japan
5 Sekisui Chemical 1 VC Germany
5 June Fund 1 VC United States
5 Bessemer Venture Partners 1 VC Japan
5 MedVenture Partners

State Of Healthcare | Collection Spotlights | Digital Therapeutics 141

Health IT

GLOBAL: Q3 2021

142

Funding in 2021 YTD has already surpassed 2020 levels by 11%, despite
39% fewer deals

$6.0B 204 231 221 226 229 Funding 250
$5.0B $2.4B $2.6B $2.7B $2.7B $5.0B $5.6B 200
$4.0B 150
$3.0B 180 Deals 100
$2.0B $1.5B 140 50
$1.0B

$.0B 0

2015 2016 2017 2018 2019 2020 2021
YTD

State Of Healthcare | Collection Spotlights | Health IT 143

Health IT startups raise $1.9B across 40 deals in Q3’21

$2,500M 66 70

62 62 64 60 62
56 57
58 $2,074M Funding 60

$2,000M 54 55 53 54 55 55 $1,975M 54 $1,946M

49 49 51 50 $1,551M
47
48 50
43
$1,500M 39 42 46
$1,359M
D4e40a0ls

$1,000M $915M $886M $843M $990M $996M $1,042M 30
$500M $873M 20
10
$738M $713M
$526M
$516M $582M $576M
$285M $354M
$374M $397M $467M $449M $380M $413M

$265M

$0M 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2015 2016 2017 2018 2019 2020 2021

State Of Healthcare | Collection Spotlights | Health IT 144

US continues to lead in funding in Q3’21, although Asia is close behind

US Asia Europe Canada All Other Regions

$1.9B
$1.7B

$1.1B

$1.1B

$0.9B$0.9B $0.7B
$0.8B

$0.1B

$0.5B

$0.2B $0.1B$0.1B$0.2B $0.1B $0.1B $0.0B

$0.1B $0.0B$0.0B$0.0B$0.0B$0.0B$0.0B $0.0B$0.0B$0.0B$0.0B$0.0B$0.0B

$0.0B $0.0B $0.0B $0.0B $0.0B

Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3
2020 2021 2020 2021 2020 2021 2020 2021 2020 2021

State Of Healthcare | Collection Spotlights | Health IT 145

Asia deal share reaches an all-time high as US deal share hits a new low

4% 4% 3% 7% 6% 6% 3% 11% All Other Regions, 2%
4% 5% 3% 5% 12% 11% 6% 8% 11% 8% 4% 6% 10% 4% 17% Canada, 5%
8% 5% 8% 11% 11% 10% 6% 11% 6% 9% 6% LatAm, 0%
2% Europe, 8%
6% 6% 4% Asia, 18%
11% 15% 13% 10% 11% 8% 5% 10% 6% 2%

96% 90% 88% 82% 81% 85% 91% 83% 88% 86% 72% 87% 73% 74% 87% 76% 75% 80% 86% 80% 85% 86% 77% 80% 89% 80% US, 68%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2015 2016 2017 2018 2019 2020 2021

State Of Healthcare | Collection Spotlights | Health IT 146

Average deal size in 2021 so far is 76% higher than it was in 2020

$44M

$25M $24M

$9M $13M $14M $15M $14M $10M 2021
$3M $4M $4M $5M 2020 YTD
$6M
147
2015 2016 2017 2018 2019
Average Deal Median Deal

State Of Healthcare | Collection Spotlights | Health IT

Early-stage deal share continues to erode as mid- and late-stage deal
shares rise in 2021 YTD

14% 9% 13% 11% 13% 17% Other, 11%
12% 12% 8% 15% Late-stage, 20%
21% 32% 31%
12% 11% Mid-stage, 44%
56% 47% 37%
14% 19% 16% 2019 2020
2018
60% 60% 61%

Early-stage, 25%

2015 2016 2017 2021
YTD

State Of Healthcare | Collection Spotlights | Health IT 148

Top 10 equity deals in Q3'21

Company Round Amount Round Latest Valuation Select Investors Country % of Total
Date Funding
1 Olive 20.6%
2 MediTrust Health $400M Series H $4.0B Tiger Global Management, Vista United States 15.8%
3 Commure 2021-07-01 Equity Partners, Base10 Partners 7.7%
4 Commure 7.7%
5 Infervision Lilly Asia Ventures, Sinovation
4.9%
$308M Series C N/A Ventures, Boyu Capital, Huasheng China
2021-08-10 Capital, Marathon Venture 149

Partners

$150M Series D $3.5B General Catalyst, HCA Healthcare United States
2021-09-13

$149M Series D $3.5B General Catalyst United States
2021-09-01

$95M Series D Co-Power Capital Management, China
2021-07-23 New Alliance Capital, V-Capital,
$692M Zhongguancun M&A Fund,
Zhongguancun Science City
Science and Technology Fund

State Of Healthcare | Collection Spotlights | Health IT

Top 10 equity deals in Q3'21

Company Round Amount Round Latest Valuation Select Investors Country % of Total
Date Funding
6 OM1 4.4%
7 SYNYI.AI $85M Series D Scale Venture Partners, Flare 4.0%
8 Medikabazaar 2021-07-16 $788M Capital Partners, General Catalyst, United States
9 Aidoc Medical 3.9%
10 eVisit Polaris Partners
10 ACTIV Surgical 3.4%
$77M Series E IDG Capital, Sharewin Fund, 2.3%
2021-07-09 $182M Dragon Gate Investment Partners, China 2.3%

Beijing Wufang Tianya Group 150

Mitsui Sumitomo Insurance

$75M Series C N/A Venture Capital, Rebright Partners, India
2021-09-22 Healthquad, Kois Invest, Creaegis

Principals

$66M Series C $151M General Catalyst Israel
2021-07-13

$45M Series B $59M Texas Health Resources, Goldman United States
2021-09-21 Sachs Asset Management

$45M Series B GreatPoint Ventures, LRVHealth, United States
2021-07-19 $96M NVIDIA, Magnetar Capital,

Balyasny Asset Management

State Of Healthcare | Collection Spotlights | Health IT