1 Nov, 2015
Israeli Digital Health: Investors PerspectiveLevi Shapiro, Founder, mHealth Israel
mHealth Israel: Join Our Community
2
Open source database of 250+ funded mHealth co’s
Pavilion: HIMSS and ATABi-annual conferences:June (Jerusalem); Feb (Tel Aviv)
Monthly Meetups
Agenda
3
Triggers for Digital Health Investment
Israel- Venture Capital Background
Israel Health Sector
Israel Digital Health Investment
Theme I: Regulatory Trigger (Obamacare)
4
Theme II: Consumerization of Healthcare (Walgreens, CityMD, etc.)
5 Source: RockHealth
Theme III: Personalized Medicine + Portability & Sharing of Health Information
6 Source: RockHealth
Thesis: 3rd Wave of Digital Health Investment
Wave IRemote Telemedicine
Wave IIEnterprise Software
Wave IIIConsumerization of Big Data
TriggerObamacare, 2009
Example: SHL; Nataliacquired by Jinpeng-Sanpower 2014, ~$100M
dbMotion -acquired by Allscripts 2013, $235MAeroScout -acquired by SBD 2012, $240MiMDSoft -acquired by TPG 2012, $80M
250+ Israeli digital healt startups Sensors, applications, big-data, machine-learning, AI, etc
Thesis: Big Data, Personalized Medicine- In Your Pocket
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Investment Thesis: Migration of Spending to Preventitive Solutions
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Investment Thesis: Aging Population
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Investment Thesis: Optimal Period for Wearables Investment Has PASSED
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Late for Wearable Investments
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Agenda
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Triggers for Digital Health Investment
Israel- Venture Capital Background
Israel Health Sector
Israel Digital Health Investment
Haifa
Herzliya
Tel Aviv
Jerusalem
Factors Enabling Israel’s Unique Healthcare Ecosystem
Rehovot
Yokneam
Beer Sheva
Petach Tiqva
• Seven university-associated and five hospital-linked technology transfer organizations (TTO) provide a valuable bridge to connect researchers and early-stage projects with both investors and partnerships with multinational corporations.
• The technological incubator network houses up to 15 companies each and provides them with a full suite of services and business development, as well as funding of approximately $500,000 for the first 2-3 years of their lives.
State
Industry
Academic & med institutions
VCs , Accelerators Angels &IncubatorsSkilled
Workforce
Start ups
Total of 6,019 companies1,159 IT &enterprise SW
1,018 Life Science StartupsOut of which 550 in Medical Devices and
210 in Digital Health
PowerOf
DistanceDynamicOpen
Culture
Informal yet Efficient
Society
Strong connections
Direct Feedback
Building Block I: R&D Allocation
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Country Rank 1st 2nd 3rd 4thBusiness expenditure on R&D Israel Korea Japan Finland
Total R&D Personnel in Business Per Capita
Israel Taiwan Luxemburg Denmark
Total Expenditure on R&D Korea Israel Finland Sweden
Nobel Prizes Per Capita Switzerland Norway Israel Sweden
Funding for technological development
Finland USA Singapore Israel
Development and application of technology
Finland Singapore Switzerland Israel
Population: 8 M NL: 17M, MA: 7 MGDP (nominal) per capita: 38K$ NL: 52 K$ IT: 35 K$Unemployment rate: 5.9 % US: 5.8 % IT: 12.6 %Human Dev. Index (Life expt., school, GDP)
#19 (out of 187) NL: #4, US #5, UK #14, IT #26)
R&D Encourages Higher Quality Innovation
16Level of Innovation
Qua
lity
of S
cien
tific
Res
earc
h
Building Block II: Skilled Workforce
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Proportion of Population with Bachelors Degree Among Life Sciences Hubs
Building Block III: International R&D Centers Are a Lifeline for Local Tech Industry
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CASE STUDY: SAMSUNG + Digital Healthcare
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Agenda
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Triggers for Digital Health Investment
Israel- Venture Capital Background
Israel Health Sector
Israel Digital Health Investment
Israeli VC Funds: More Money Flooding into the Market
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Three Key Ingredients of Israel Success
Israel Venture Industry
Israel Health Sector
Israel Digital Health Investment
IVC, 2014
Total Annual Exits: Trended
22 PWC, 2014
Proportion of IPOs to M&A
23 PWC, 2014
Agenda
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Triggers for Digital Health Investment
Israel- Venture Capital Background
Israel Health Sector
Israel Digital Health Investment
GDP Allocation: 7.5% VS 18% of GDP
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Health in Israel: Relatively Good Outcomes
26 OECD, 2012
CVD Mortality in Israel
27 OECD, 2011Israel Ministry of Health, 2013
Ischemic Heart Disease, Mortality Rates
Comparatively Efficient Health System Optimization
28 Israel, MOH; OECD
Factors That Drove Israel Toward Prioritizing Digital Healthcare Adoption
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Multi-Morbidity
Aging
Complexity
Resources Shortage
HMOs bring 24 YEARS of universal, longitudinal EMR data that startups can access
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Example from Clalit, largest HMO with 54% market share
International Recognition: OECD
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“ Israel’s community‐focusedinformation system sets aninternational benchmark inexcellence and demonstratescommitment to quality monitoringand improvement. ”
OEDC Report, 2012
Agenda
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Three Key Ingredients of Israel Success
Israel Venture Industry
Israel Health Sector
Israel Digital Health Investment
Israel Life Sciences Industry by Sub-Sectors
33 IATI, 2015
Source: mHealth Israel Database
140
Source: mHealth Israel Database
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2014 FASTEST GROWING DIGITAL HEALTH CATEGORIES
36 Source: mHealth Israel Database
mHealth Israel Database Breakouts
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