2020 City Healthcare Report INTRODUCTION Welcome to the third annual Healthcare Venture Capital Report.

2019 marked the ten-year anniversary of NYC Health We also explore key trends that are driving investment, Business Leaders (NYCHBL), during which we have seen interest and excitement including: a decade of incredible growth for NYC health start-ups. When Dr. Yin Ho and I co-founded NYCHBL in 2009, • LIFE SCIENCES. A decade ago, it was hard to name our goal was to build an organization that would help any biotechs calling NYC home. Today it’s a vastly connect people passionate about healthcare, because different story as you’ll learn from our dedicated section we believed that NYC should be at the center of on the sector’s growth. (See pages 16-19) healthcare innovation given our many assets. Ten years, • DIGITAL THERAPEUTICS. An emerging area that 55 events and 250 speakers later, New York City has in marries therapeutics with technology to drive better fact become the epicenter of tech-driven healthcare. It’s patient outcomes, digital therapeutics (DTx) are gaining rewarding that we’ve been able to play a part in the traction. As we hear from leaders in this exciting growth story. space, DTx are poised to change clinical practice The 2020 report reflects your overwhelming response, and alter the way healthcare is delivered in the future. inspiring feedback and thoughtful commentary to last (See pages 12-13) year’s report. There are more expert insights, observations • INVESTOR LANDSCAPE. Interest in investing and interviews from leading entrepreneurs, investors and in health has gone far beyond the names we have advisors. We added data and content around growth traditionally seen. While pulling together the most areas like digital health, life sciences, digital therapeutics active investors in NYC health, we discovered many and behavioral health. Importantly, in 2020 we saw consumer and tech-focused firms on the list. The 40% growth in both the number of companies thesis is that consumers will drive change and that financed and dollars invested. And for the first time, is borne out by the financing. (See pages 14-15) we are pleased to present the NYC Digital Health 100 – our list of the 100 most promising NYC start-ups.

Thank you to all who contributed to this report, and a special acknowledgment to Sanofi, our inaugural sponsor, and to Cooley for their data analysis and ongoing support. As we look ahead to 2020 and beyond, we look forward BUNNY ELLERIN to continued growth, innovation and transformation in President, healthcare in NYC. NYC Health Business Leaders

2 EXPERT INSIGHTS Many Thanks to Our Contributors

For our 2020 report, we have assembled an array of esteemed contributors who comprise the who’s who in the NYC healthcare ecosystem — the top entrepreneurs, investors and thought leaders.

Sundeep Bhan | Co-Founder & CEO Steve Kraus | Partner PROGNOS BESSEMER VENTURE PARTNERS

Nancy Brown | General Partner Ofer Leidner | Co-Founder & President OAK HC/FT HAPPIFY HEALTH

Brenton Fargnoli, MD | Partner Hua Lin, PhD | Chief Scientific Officer & ALLEYCORP Co-Founder FORKHEAD BIOTHERAPEUTICS James E. Flynn | Managing Partner DEERFIELD MANAGEMENT Michael Meng | CEO STELLAR HEALTH Jenna Foger | Senior Vice President Science & Technology Emily Minkow | Chief Business Officer ALEXANDRIA VENTURE INVESTMENTS PREVAIL THERAPEUTICS

Ron Goldman | Co-Founder Patrick Pilch | Senior Managing Director & KOGNITO National Healthcare Practice Leader BDO Wendy Goldstein | Partner COOLEY Trevor Price | CEO, OXEON HOLDINGS General Partner, TOWN HALL VENTURES Orin Herskowitz | Executive Director COLUMBIA TECHNOLOGY VENTURES Raju Rishi | General Partner RRE VENTURES Trip Hofer | CEO ABLETO Carlo Rizzuto, PhD | Partner VERSANT VENTURES Walter Jin | Chairman & CEO PAGER Brad Svrluga | Co-Founder & General Partner PRIMARY VENTURE PARTNERS Bozidar Jovicevic MD, MBA VP | Global Head of Digital Therapeutics Nina Tandon, PhD | CEO & Co-Founder SANOFI EPIBONE

Taylor Justice | Co-Founder & President Chris Wasden | Head of HappifyDTx UNITE US HAPPIFY HEALTH

Eric Kinariwala | Founder & CEO Rod Wong, MD | Chief Investment Officer & CAPSULE Managing Partner RTW INVESTMENTS David Benshoof Klein | Co-Founder & CEO CLICK THERAPEUTICS

3 2019 BY THE NUMBERS

HEALTH IN FUNDING COMPANIES IN 2019 117 RECEIVED $2.6B

FUNDING BY STAGE FUNDING BY SECTOR 5% Seed/Angel

% 42 % 30% Life Sciences 6 % Delivery/ Late stage VC 34 Providers Series A 6% % Diagnostics 23% 46 & Devices Series B Digital/ 8% Tech-enabled Other Early stage VC

EXITS IPOS

Company Acquired by Deal Amount

Dassault $5.7 Billion Systèmes

Veeva $550 Million Systems

$520 Million Lantheus (estimated)

YEAR OVER YEAR

2019 2018 Change

# Companies Financed 117 83 41%

Overall Investment $2.6 Billion $1.85 Billion 41% 4 DIGITAL HEALTH ECOSYSTEM New York State of Mind Over the past ten years, since the inception of NYCHBL, we have seen a dramatic increase in the number of digital health businesses in NYC. Companies like WebMD, Medidata, Crossix, and EverydayHealth NANCY BROWN paved the way for a new generation of startups, General Partner, creating a fertile breeding ground for innovation Oak HC/FT and transformation of the digital health space. Here’s why leading investors and entrepreneurs are bullish THE NUMBER OF TECH-ENABLED on New York’s growth. and digital healthcare companies has exploded. Five years ago, we had just one company in NYC. Now we have at least 6-7 teams with a presence: Galileo, Maven, Quartet, Unite Us to name a few.

RAJU RISHI General Partner, RRE Ventures

THE ECOSYSTEM HAS EVOLVED SIGNIFICANTLY OVER THE LAST SUNDEEP BHAN DECADE. I started a company in Co-Founder & CEO, 2000 and at that time, Boston and Prognos California were the hubs of startup innovation and VC. Today, NYC is faster I’VE BEEN PART OF THE growing than any other city and we have NYC DIGITAL HEALTH the technical talent to sustain it. ECOSYSTEM for more than 20 years. Prognos is my third company. What’s different today besides the sheer number of start-ups is that larger healthcare companies are more collaborative BRAD SVRLUGA and open to having a dialogue Co-Founder & General Partner, with innovators. Primary Venture Partners

BEING IN NYC AND BEING FOCUSED ON NYC makes our lives related to deal flow a lot easier, and it makes us as investors more impactful since we’re not chasing deals in the Bay Area, Austin, Chicago, or anywhere else. Our ability to support entrepreneurs with resources that are generally not more than 20–30 minutes away is a key differentiator.

5 TOP 25 Digital Health Investments in 2019

No. Company Description Funding (MM) Stage Select Investors

Rebuilding the pharmacy industry, TCV, Glade Brook Capital, M13, enabling customized outcomes for Late 1 $200 Thrive Capital, University Growth doctors, hospitals, insurers, and stage VC Fund, Oxeon Ventures manufacturers.

FirstMark Capital, PROOF Fund, Direct-to-consumer telehealth company Early 2 $85 Evolution VC Partners, TQ Ventures, with brands Roman, Rory and Zero. stage VC Sand Hill Angels, J Ventures

Centene, GV, Echo Health Ventures, Improves behavioral health delivery Late 3 $67.5 Polaris Partners, Oak HC/FT, Deerfield for patients, providers, and payers. stage VC Management, F-Prime Capital

Provides personalized primary care, Redpoint Ventures, Emblem Health, Early 4 behavioral health care, and social services $65 Thrive Capital, Oxeon Ventures, Town stage VC for underserved urban populations. Hall Ventures, Maverick Ventures

Greycroft Partners, Bracket Capital, Provides teeth alignment technology Early 5 $63.4 Bessemer Venture Partners, Riverpark designed to be hassle-free. stage VC Ventures, Fantail Ventures

Sequoia, Samsung Venture Direct-to-consumer weight loss and Late Investment, TransLink Capital, 6 $58 exercise tracking mobile applications. stage VC Aglae Ventures, Primary Venture Partners, RRE Ventures

Revolution Group, Top Tier Capital Offers affordable and confidential Late Partners, Nomura Capital Partners, 7 online therapy with network of $50 stage VC Spark Capital, Compound, Norwest licensed therapists. Venture Partners

Transforming cancer diagnosis, treatment Early Breyer Capital, HealthCare Ventures, 8 $45 and prevention through cutting-edge AI. stage VC Kenan Turnacioglu

Harnesses mobile computing and data Early Bayer, Innova Capital Partners, 9 science to transform the lives of people $40 stage VC FJ Labs, RRE Ventures with diabetes.

Provides care coordination platform Oak HC/FT, Scout Ventures, Town Hall Early 10 bringing together healthcare and $35 Ventures, Omidyar Network, New York stage VC social services. Ventures, Blossom Street Ventures

Polaris Partners, First Round Full-service marketplace for Late Capital, RRE Ventures, 406 11 $34 healthcare jobs. stage VC Ventures, Icon Ventures, Silicon Valley Bank, AlleyCorp

6 EARLY STAGE: Seed/Angel, Series A, Series B LATE STAGE: Series C and beyond No. Company Description Funding (MM) Stage Select Investors

Connects patients and consumers Late Ascent Biomedical Ventures, 12 to leading wellness professionals and $31.8 stage VC Northwell Ventures remote monitoring.

Dental clinic intended to improve dental Early Redpoint Ventures, Juxtapose, 13 $31.1 visit and entire wellness experience. stage VC Tusk Ventures, Oxeon Ventures

McKesson Ventures, Sanofi Real-world evidence and outcomes- Early Ventures, Flare Capital Partners, 14 based analytics solutions for life science $29.4 stage VC Lakestar, Oxeon Ventures, companies and payers. New Enterprise Associates

Optimizes healthcare expenditure for Early 15 employers and employees through patient $28 Thrive Capital, Rizk Ventures stage VC navigation and analytics.

GV, RRE Ventures, Perceptive National network of boutique locations for Early 16 $27 Advisors, Winklevoss Capital, Trail women's healthcare. stage VC Mix Ventures, Green D Ventures

GE Ventures, Manatt Venture Fund, AI solution for clinicians and patients to Early Northwell Ventures, Flare Capital 17 $26.6 help diagnose and treat chronic disease. stage VC Partners, Greycroft Partners, Revelation Partners

Holistic personalized medicine White Star Capital, Arkitekt Ventures, Early 18 designed to reverse chronic illness $26 FirstMark Capital, Alpha Edison, Trail stage VC and optimize health. Mix Ventures, FJ Labs

Offers companies and individuals JAZZ Venture Partners, Canvas sustainable, science-based solutions Early 19 $25 Ventures, Greycroft, IVP, Lerer to enhance well-being, performance, stage VC Hippeau, Female Founders Fund and purpose.

Delivers free health technology for K-12 Late Oakhouse Partners, B Capital Group, 20 $24.3 public schools. stage VC Echelon Capital, Digitalis

Connects patients with medical Early 21 professionasl to get appropriate treatment $23.7 Undisclosed stage VC at a reasonable cost.

Delivers safe, effective digital therapeutics TT Capital Partners, Mangrove Late 22 that empower users to improve their $20.2 Capital Partners, Founder Collective, stage VC mental and physical health. Bridge Builders Collaborative

Palisades , Baird AI and advanced data analytics company Late 23 $16.8 Capital, Accelmed, New Leaf targeting the health care industry. stage VC Ventures, Tribeca Venture Partners

Next generation PBM overseeing Early Edison Partners, Emerald 24 $16 self-insured prescription benefit plans. stage VC Development Managers

SV Health Investors, Blue Cross Blue Helps organizations address the social Early Shield Venture Partners, Activate 24 $16 determinants of health. stage VC Venture Partners, Primary Venture Partners, Kapor Capital

Online audiology platform for Early Tiger Management, 24 $16 hearing devices. stage VC Declaration Capital

EARLY STAGE: Seed/Angel, Series A, Series B LATE STAGE: Series C and beyond 7 RON GOLDMAN Talent Sets Co-Founder, Kognito

NYC Apart THE TALENT POOL IS NOT JUST HIGH QUALITY, it is filled Our people, by far, are one of NYC’s greatest with candidates who seek opportunities strengths. The wealth of scientific, medical, and to do well by doing good. This aligns technology expertise across the health sector is well with a mission-driven company significant. Fueled by top universities, health systems like Kognito. and big pharma in the region, NYC offers an unparalleled diversity of industries and talent. We asked company founders and funders to describe how the city’s talent pool has helped them succeed.

BRENTON FARGNOLI, MD Partner, AlleyCorp

TECH ALONE OR HEALTHCARE CARLO RIZZUTO, PHD ALONE is unlikely to solve healthcare’s Partner, Versant Ventures most complicated problems. NYC’s unique diversity allows founders to create multi- TURNSTONE BIOLOGICS IS disciplinary teams from the beginning, A REALLY GOOD EXAMPLE of embedding it in the startup’s DNA. how you can build an experienced management team in NYC. The technology comes from Canada, but the CEO lives in NY and wanted to stay here. He’s been able to take advantage of talent from Big Pharma in NJ and local biotech. They’ve assembled a ERIC KINARIWALA great team. Founder & CEO, Capsule

BUILDING A COMPANY that is at the intersection of retail, healthcare, and technology, we realized the need to attract talent across a broad range of industries. Given NYC’s diversity, EMILY MINKOW it has been the perfect city to recruit the best in Chief Business Officer, class industry experts. Prevail Therapeutics

WE’VE HIRED A LOT OF POSTDOCS out of the various NY universities, and from the tristate area, who are experienced in pharma. SUNDEEP BHAN We have top key opinion leaders right Co-Founder & CEO, Prognos here in NYC who are part of our studies. It’s been exciting to see WITHIN A 60-MILE RADIUS, you have some the biotech community grow. of the most brilliant people that you can access. The universities, adtech and fintech sectors, and healthcare workers provide a great pool of young talent and thought leadership. 8 Tips from ERIC KINARIWALA the Top Founder & CEO, Capsule AN OLD FRIEND ALWAYS Investors and entrepreneurs are the lifeblood REMINDS ME to “Win by winning,” of our start-up ecosystem. We asked leaders which is my shorthand for remembering on the frontlines to share advice and insights that leaders have always had to be for aspiring founders and early-stage CEOs. great at separating signal from Their responses may surprise you. noise — both as decision makers, but also as communicators.

NANCY BROWN General Partner, Oak HC/FT NINA TANDON, PHD WE LOOK FOR THE ABILITY TO BE CEO & Co-Founder, EpiBone A LEADER and have people who want to follow you. Humility is huge. We want to DON’T SKIMP ON INVESTING IN work with open-minded entrepreneurs who LEGAL COUNSEL up front to help with are willing to iterate and take feedback. company formation. The way you structure a company has many ramifications down the line, particularly for fundraising.

STEVE KRAUS Partner, Bessemer Venture Partners MICHAEL MENG CEO, Stellar Health ROI, ROI, ROI. Tailor your products to deliver ROI. Come up with the ways to measure it, refine it, and tweak it. If GET EXECUTIVE COACHING. Does Nadal or you have ROI and the data to support Federer have a coach? It doesn’t matter who you it, that will win the day. are, if you want to perform at the top of your game, you should have coaching.

TAYLOR JUSTICE Co-Founder & TREVOR PRICE President, Unite Us CEO, Oxeon Holdings; General Partner, Town Hall Ventures JUST BECAUSE IT HASN’T BEEN DONE, doesn’t mean you GREAT LEADERSHIP TEAMS CREATE can’t do it. If you play in someone GREAT VALUE. The three main things I look else’s box, it limits you. At Unite for are: immense grit and resilience; intellectual Us, we go solve the impossible; curiosity or IQ; emotional intelligence or EQ. after all, it’s only impossible until you make it possible. 9 NYC Digital Health 100

ANALYTICS BEHAVIORAL HEALTH CARE COORDINATION

FERTILITY

DELIVERY MODELS

SECURITY

DIGITAL THERAPEUTICS CLINICAL TRIALS

INSURANCE/BENEFITS DIAGNOSTICS & MONITORING DIRECT-TO-CONSUMER

PATIENT ENGAGEMENT

PROVIDER TOOLS

PHARMACY

SOCIAL DETERMINANTS OF HEALTH DENTAL

10 INNOVATION

JAMES E. FLYNN Managing Partner, Deerfield Management Deerfield to Create Bold Life Sciences Campus

Deerfield Management is one of the most prominent healthcare investors in the world. They impact all areas of healthcare by focusing on advancing healthcare through investment, information and philanthropy. In September 2019, they announced the purchase of 345 Park Avenue South to create a transformative life sciences campus in NYC. We sat down with Deerfield Management’s Managing Partner, James E. Flynn, to learn more about his vision for this bold innovation campus.

Deerfield’s decision to purchase technology and all forms of What types of companies will a building and launch a 300,000 healthcare services (including benefit the most from it? square foot innovation campus is software, AI) and is skilled at New and growing enterprises face incredibly exciting! What was the navigating the complex crosscurrents the challenge of simultaneously impetus behind this idea? in the healthcare and financial executing complex business There remains a need and an industries. The creation of Deerfield’s strategies, building world-class important opportunity to provide innovation campus will create an operating teams, creating specialized support to biotech and ecosystem where the community partnerships, and a wide range of healthcare start-ups which is currently can benefit from those capabilities. other critical functions with limited not being sufficiently addressed We are creating a network in the resources. To address this, the in NYC. Through the launch of our building that will serve as the companies located in our innovation innovation campus and our ongoing foundation and infrastructure for campus will have access to a suite of academic partnerships, we’re optimizing and accelerating all services designed to enhance investing in early-stage research in areas of the ecosystem. With the company success and growth while NYC because we believe this is where specialized capabilities of the reducing timelines to value-creating Deerfield can add value to the innovation campus, including its events and overall costs. While many healthcare system. educational programming, we companies require significant intend to enhance and help optimize support early in the life cycle, these NYC’s position as the next national What will this mean for NYC’s capabilities are structured in a hub in the biotech/medical device, start-up community? manner to assist businesses across digital health and healthcare all stages of maturity, from formation Deerfield has expertise in all areas service arenas. to a successful launch of products. of healthcare, including medical

11 A LOOK TO THE FUTURE Digital Therapeutics Roundtable

Digital therapeutics are an emerging area that marry technology with drugs, biologics and medical devices to drive better patient outcomes. We assembled NYC thought leaders in the space to help us understand where things are headed.

BOZIDAR DAVID BENSHOOF OFER LEIDNER CHRIS WASDEN JOVICEVIC, MD, MBA KLEIN Co-Founder & Head of HappifyDTx VP, Global Head of Co-Founder & CEO President Happify Health Digital Therapeutics Click Therapeutics Happify Health Sanofi

Q Digital therapeutics are robust clinical trials and developed DAVID B. KLEIN: When we founded still not well understood. in accordance with relevant FDA, Click in 2012, it was clear that the Explain how they differ from ISO and IEC standards. mobile phone was changing digital health tools. people’s behavior. We launched CHRIS WASDEN: DTx are evidence- Click based on the premise that BOZIDAR JOVICEVIC: based interventions delivered Digital therapeutics (DTx) are a delivering treatment through mobile through software to prevent, treat apps, and engaging with patients sub-category of digital health. or manage a disease. They require At Sanofi, we define it as non- clinical evidence or real-world pharmacological, primarily tech- outcomes, and can be used driven solutions that either stand independently or alongside other “About 86% of all alone or when combined with treatments for a patient’s benefit. drugs do two things: improve healthcare costs are patient outcomes and drive What’s novel about DTx? caused by diseases business impact. There is typically Q Why are you so bullish on a mobile app, service like a coach, that can be either its promise? and possibly a sensor as part of it. modified or reversed BOZIDAR JOVICEVIC: DTx are DAVID B. KLEIN: One of the about behavior change, which is through behavior primary differentiators is that DTx one of core determinants of health. change. That’s why DTx treat diseases and disorders, as About 86% of all healthcare costs are so exciting to me.” opposed to primarily supporting are caused by diseases that can be wellness, pharmacotherapy either modified or reversed through BOZIDAR JOVICEVIC MD, adherence, clinical decision support, behavior change. That’s why DTx MBA, SANOFI etc. Additionally, digital therapeutics are so exciting to me. are clinically validated through 12 where they are, could drive that they already treat is a huge How will DTx will change Q significant clinical outcomes. opportunity. We recently announced clinical practice over the 10-year collaboration with Sanofi next decade? OFER LEIDNER: We are using to leverage the Happify digital our passion for evidence-based BOZIDAR JOVICEVIC: Our vision therapeutics platform to develop at Sanofi is that we believe digital behavioral interventions in positive and deliver a digital MS therapy. psychology, cognitive behavioral therapeutics will be a part of daily Sanofi and Happify Health view this practice. Physicians may prescribe therapy, mindfulness and others to collaboration as the beginning of a focus on creating digital therapeutic insulin for diabetes, but they’ll also long-term effort to use technology prescribe a DTx that offers patients solutions that address disease to improve outcomes in a cost- specific needs that are FDA cleared a coach, sensor glucometer, mobile effective, accessible and patient- app and everything else they need as prescription digital therapies engaging way. (PDT), and prescribed by physicians. to be successful in behavior change. Happify Health’s digital therapeutics DAVID B. KLEIN: DTx will become solutions promise to deliver safe, solidified as a new category of evidence-based therapeutic “DTx will become medicine, beginning initially in interventions to treat, manage or solidified as a new diseases where there are strong improve people’s physical or mental behavioral components that health through meaningful behavior category of medicine, affect outcomes and where non- change, enabling them to live fuller, beginning initially in pharmaceutical treatments are happier lives. diseases where there often recommended as the first line of treatment, but for which access Q What are the biggest are strong behavioral to such treatments is limited. opportunities associated components that affect with DTx? Bozi, what recommendations outcomes.” Q BOZIDAR JOVICEVIC: The do you have for entrepreneurs biggest opportunity is to develop DAVID B. KLEIN, hoping to partner with Sanofi? a prescription go-to market CLICK THERAPEUTICS BOZIDAR JOVICEVIC: First, have model. This would mirror the a really good product. You must typical development and regulatory be at a certain level of maturity pathways for medical devices, and before you reach out. We like to would include pivotal studies, FDA And what are the biggest Q see some sort of traction — a challenges? submission, potential approval, and clinical trial, customers, great physician adoption. Patients would BOZIDAR JOVICEVIC: The biggest engagement results, a solid team. access the digital therapeutic challenges will be physician adoption It takes a minimum of two years through a prescription written by and payer reimbursement. to achieve this, but more like four a doctor. We prefer this model to five. Reach out to pharma vs going through employers and DAVID B. KLEIN: Helping to when you’re able to show us you’re payors without FDA approval. pioneer a new category of medicine ready. Second, identify an internal Although that pathway is viable is challenging. Startup life can be champion to navigate the complex and faster, potential forecasts for difficult at times and has its ups maze that Big Pharma presents. those products are smaller. The and downs, but I’m a firm believer Third, inject urgency or scarcity prescription path is slower but a that persistence pays off! by working with several pharma much bigger opportunity. CHRIS WASDEN: Because digital companies at once. Sometimes CHRIS WASDEN: Partnering with therapeutics require evidence- your enemy is inertia. If you’re pharma companies to modify based interventions, it can be a long working with multiple companies, and customize our metacondition process to see an opportunity go then chances are higher that things therapy to address the specific from idea to a product in-market. will move faster. issues and nuances of the disease

13 MOST ACTIVE Investors in NYC Healthcare

# NYC Investor Investments NYC Companies Focus

Applied Therapeutics, ENB Therapeutics, Gencove, Gotham Therapeutics, Intra-Cellular Therapies, Kallyope, Lodo Therapeutics, Magnolia 25+ Neurosciences, MeiraGTx, MouSensor, Petra Pharma, Prevail Therapeutics, Healthcare Quentis Therapeutics, Rgenix, X-Vax Technology, Yesse Technologies, Zentalis Pharmaceuticals

Celmatix, Cureatr, EpiBone, Intra-Cellular Therapies, Lodo Therapeutics, Multiple 12 Magnolia Neurosciences, Petra Pharma, Rgenix, Spring Health, TARA, industries Vivaldi Biosciences, Wellth

Axon Therapies, Cureatr, Dracen Pharmaceuticals, NYC Digital Health Fund, 9 Quartet Health, Schrodinger, Sermo, Stelexis Therapeutics, Vesta Healthcare Healthcare (formerly Hometeam)

Alma, CredSimple, Flume Health, Healthify, HLTH, K Health, Kinetic, Multiple 9 Noom, Stellar Health industries

Multiple 9 Alma, Blink Health, Hero, K Health, Level, Maven, One Drop, Oscar, Ro industries

Candid, Eden Health, Ever/Body, HealthReveal, Medly Pharmacy, Multiple 8 Thirty Madison, Thrive Global, Vault Health industries

Kallyope, Nomad Health, Phreesia, Quartet Health, Quentis Therapeutics, Multiple 8 Remedy Health Media, US Healthvest, Wellthy industries

Care/Of, Kaleidoscope Labs, Kindbody, Nomad Health, Noom, Multiple 7 One Drop, Spring Health industries

Imagen Technologies, Kindbody, Oscar, Owkin, Quartet Health, Multiple 7 Schrodinger, Verana Health industries

Galileo, Maven Health, Quartet Health, Unite Us, US Healthvest, Multiple 6 Vesta Healthcare (formerly Hometeam) industries

Mavencare, One Drop, Paloma Health, Parsley Health, Multiple 6 Torch Technology, Wellthy industries

14 # NYC Investor Investments NYC Companies Focus

Centivo, Meves Pharmaceuticals, Owkin, Quartet Health, Turnstone Biologics, Multiple 6 US Healthvest industries

Multiple 6 Alma, Caredox, Level, Nomad Health, Simplifeye, Truveris industries

Multiple 6 Heartbeat Health, K Health, Klara, Medly Pharmacy, Oscar, Thrive Global industries

5 Capsule, Centivo, Cityblock Health, Risalto, Tend Healthcare

5 Hookipa Pharma, Neurogene, Nuvation Bio, Zentalis Pharmaceuticals Healthcare

Multiple 5 Capsule, Cedar, Cityblock Health, Oscar Health, Rightway Healthcare industries

Multiple 5 Cedar, Oscar Health, Roivant Sciences, X-Vax Technology, ZocDoc industries

Multiple 5 Dadi, Envisagenics, Gencove, Hero, Redesign Science industries

Multiple 5 BioDigital, Klara, Parsley Health, Phosphorus Diagnostics, Ro industries

Multiple 5 Kallyope, Pager, Variant Bio, Vesta Healthcare (formerly Hometeam), Zipdrug industries

5 Abacus Insights, Cityblock Health, Phreesia, Quartet Health, Tyto Care Healthcare

Attune Pharmaceuticals, Immunovant, Relmada Therapeutics, 5 Healthcare Rocket Pharmaceuticals, Roivant Sciences

BlueRock Therapeutics, Gotham Therapeutics, Quentis Therapeutics, 4 Healthcare Turnstone Biologics

Multiple 4 Candid, Centivo, K Health, Torch Technology industries

4 Aetion, Cityblock Health, Torch Technology, Unite Us Healthcare

Meves Pharmaceuticals, Prevail Therapeutics, SmartZyme Biopharma, 4 Healthcare Turnstone Biologics

15 Life Sciences NYC NYC has always had the raw materials to become a biotech powerhouse – renowned academic medical centers, world-class physicians and scientists, Big Pharma nearby and access to financial markets. But impediments like lack of wet lab space, seasoned talent and low investor interest held the city back. Most recently, NYC has addressed these obstacles through public, private and joint initiatives, and in response, the life sciences market has gained traction. We’ve chronicled a timeline of key milestones and spoke to some of the leaders responsible for the significant growth.

2019 KEY EVENTS 2017

2018

2015 2016

2013

2011 2012

2004 2010

16 Pioneers Incubators Lack of affordable and accessible lab space in NYC was seen as a major challenge, but the proliferation of incubators and accelerators over the past decade CARLO RIZZUTO, PHD has helped turn the situation around. Professor Eva Partner, Cramer launched one of the first at SUNY Downstate Versant Ventures in Brooklyn. Today there’s ELabNYC, BioBAT, Harlem Biospace, Alexandria LaunchLabs, JLabs, BioLabs, VERSANT IS HISTORICALLY and most recently, IndieBio. A WEST COAST FIRM. When we had the discussion about establishing an East Coast presence, we were attracted to New York because we saw so much untapped opportunity. There was a lot of high-quality academic science but HUA LIN, PHD virtually no biotech. As a company- Chief Scientific Officer & Co-Founder, building firm, we knew we could Forkhead BioTherapeutics leverage the science and access the financial community. INCUBATORS ARE CRITICAL. We’re at Alexandria LaunchLabs, a vibrant community of more than 20 early-stage companies on the same floor. We have different areas of focus, so there’s a sense of camaraderie rather than competition. It’s amazing how much useful information is shared JENNA FOGER just from being in the incubator. Senior Vice President, Science & Technology, Alexandria Venture Investments

ALEXANDRIA BUILDS ORIN HERSKOWITZ ECOSYSTEMS CENTERED Executive Director, Columbia AROUND COLLABORATIVE urban Technology Ventures campuses where life science and tech companies want to be. We look for four main attributes to underlie our core NYC’S MANY LIFE SCIENCE cluster markets: location dynamics, INCUBATORS AND ACCELERATORS, innovation, talent and capital. The including those run at Columbia as part of science coming out of New York’s our Lab-to-Market Accelerator Network, leading academic medical centers, the pair high-potential inventions with the tools density and diversity of NYC’s patient they need to successfully launch. These population, and the ability to attract include connections to mentors and talent and capital were all compelling advisors from industry and venture capital; drivers. We came here to provide real small amounts of validation capital; estate, specialized infrastructure, education in entrepreneurship and venture capital, strategic programming, technology commercialization; access to and community building — all critical executives in residence; and ultimately elements for nurturing an ecosystem. opportunities to pitch to venture funders. 17 NEW YORK’S BIOTECH EMILY MINKOW Chief Business Officer, Future is Bright Prevail Therapeutics A decade ago, it was hard to name one biotech PREVAIL THERAPEUTICS based in NYC. Today there are several dozen IS A DEVELOPMENTAL STAGE companies using cutting-edge science to address BIOTECH COMPANY focused on important unmet needs in the market. These neurodegenerative diseases, many advances have the potential to dramatically of which have no disease-modifying impact and improve health. therapies available. It was founded in collaboration with a patient, Jonathan Silverstein, who is also one of the managing partners at OrbiMed. I was employee #6. HUA LIN, PHD It’s an exciting time for gene therapy Chief Scientific Officer & especially with the increased Co-Founder, Forkhead understanding of the human BioTherapeutics genetics behind CNS diseases.

FORKHEAD’S MISSION IS TO DEVELOP A PILL that can replace insulin injections while achieving better blood sugar control for the treatment of diabetes. The pill will not require refrigeration or cause low blood sugar, JENNA FOGER and could have a tremendous impact Senior Vice President, Science & for underserved patients without Technology, Alexandria Venture consistent electricity or access to Investments endocrinologists who can prescribe SUCCESS BREEDS SUCCESS. If we keep turning insulin and teach patients how to out opportunities that are really differentiated and safely use it. compelling, talented people tend to follow.

CARLO RIZZUTO, PHD ROD WONG, MD Partner, Chief Investment Officer & Versant Ventures Managing Partner, RTW Investments

I’M VERY BULLISH ON NYC’S WE’VE MADE QUITE A FEW INVESTMENTS EMERGING biotech landscape although in NYC over the last 15 years. Two notable companies we need to be realistic about the pace with include Rocket Pharma, a gene therapy platform which it will develop. What’s really exciting company, and Immunovant, which is developing an is that it’s not just Versant driving things. antibody depleting FcRn, a drug class we expect will Other top-tier, experienced venture become a cornerstone therapy for autoimmune investors like Orbimed, Polaris, Arch and diseases. We took Rocket public in January 2018, and Flagship have been backing companies we’re proud to report it is the largest gene therapy here. These are blue chip biotech VC’s. company in New York and the sixth largest in the US.

18 TOP 10 Life Sciences Investments in 2019

No. Company Description Therapeutic Funding Select Investors Focus (MM)

Stealth biotechnology company Omega Funds, Fidelity Investments, 1 developing proprietary therapies Oncology $275 Aisling Capital, Boxer Capital, focused on oncology. EcoR1 Capital

Accelerates drug discovery and materials WuXi AppTec, Bill & Melinda Gates Drug 2 science design using a physics-based $107.8 Foundation, Deerfield Management, Discovery computational platform. GV, Qiming Venture Partners

Matrix Capital Management, Clinical-stage biopharma developing Viking Global Investors, Alexandria 3 novel small molecule therapeutics Oncology $85 Venture Investments, Redmile in cancer. Group, Farallon Capital Management, Perceptive Advisors

Develops treatments for rare and Rare 4 life-threatening conditions. Its lead $69.9 Alexion Pharmaceuticals Diseases asset targets amyloidosis.

Brings life-changing genetic medicines Neurology/ Samsara BioCapital, EcoR1 Capital, 5 to patients and families affected by rare CNS, Rare $68.5 Cormorant Asset Management, neurological disorders. Diseases Redmile Group

ARCH Venture Partners, Celgene, Focused on tumor dormancy detection 6 Oncology $60.8 Hillhouse Capital Group, 6 and therapeutics. Dimensions Capital, NYCEDC

Johnson & Johnson Innovation, Developing vaccines against pathogens Infectious Alexandria Venture Investments, 7 acquired by mucosal infection such $56.5 Diseases Serum Institute Of India, Founders as herpes. Fund, New Ventures Funds

Orbimed, RA Capital, EcoR1 Develops gene therapies for patients Capital, Alexandria Venture 8 with Parkinson’s disease and other Neurology/CNS $50 Investments, Omega Funds, neurodegenerative disorders. BVF Partners

Targets pre-cancerous stem cells to 9 discover and develop transformative Oncology $43 Deerfield Management therapies for cancer.

Clinical-stage biopharma focused on Autoimmune 10 enabling normal lives for patients with $39.8 RTW Investments, Roivant Diseases autoimmune diseases.

19 WHAT TRENDS ARE WE RON GOLDMAN Likely to See Co-Founder, Kognito THE CONTINUED PUSH in 2020? TOWARDS PERSONALIZATION of healthcare and the role patient- Given that 2020 is an election year and healthcare is centered communication will play in a major part of the conversation, it is likely there will improving patient engagement and be some tightening of financing. But the forces of health outcomes. change that have already been unleased will continue to propel the industry ahead: consumerism, new delivery models, value-based payments, personalized care, focus on underserved populations and technologies like AI and VR.

WENDY GOLDSTEIN Partner, Cooley WALTER JIN Chairman & CEO, Pager WE WILL CONTINUE TO SEE ADVANCES IN THE DEVELOPMENT ARTIFICIAL INTELLIGENCE of drugs and biologics including gene WILL PLAY a more pivotal therapy. Due to the cost of these new role as organizations develop treatments, government and private payors more engaging and personalized will be experimenting with risk sharing experiences for patients, including agreements and other innovative contracting. assisted communication and 2020 also will see the continuation of navigation, recommended next best developments at the state and federal actions and proactive data insights. levels in transparent health care.

TAYLOR JUSTICE STEVE KRAUS Co-Founder & President, Partner, Bessemer Unite Us Venture Partners

WE’LL SEE BOTH CONSOLIDATION THE CONTINUED VERTICALIZATION AND NEW ENTRANTS into the SDOH OF THE HEALTHCARE INDUSTRY. market, because both healthcare and VC We’ll see companies that build great are interested in identifying solutions: products in specific verticals like kidney either build it or buy it. I think we’ll also see or musculoskeletal (MSK) care, where the community-based organizations (CBOs) patient profile, treatment regimen, and becoming part of the contracting process care system are aligned. for value-based care with states, and philanthropy leading the way to support complete care and social innovations.

20 2020 Trends

RAJU RISHI General Partner, RRE Ventures PATRICK PILCH Senior Managing Director & I THINK WE’RE GOING TO SEE A National Healthcare Practice Leader, BDO BEAR MARKET soon, which could put some start-ups out of business. But we FOR FOCUSED ON reserve dollars for the down cycles, and the HEALTH TECH, paying close attention to companies we invest in have great value proposed updates to HIPAA, and conducting propositions in both bull and bear markets. proactive — and continuous — due diligence around cybersecurity and data privacy will be paramount.

Behavioral Health Spotlight

Using technology to treat and manage behavioral health is a relatively new concept, and NYC has attracted many behavioral health tech start-ups over the past few years. Companies like AbleTo, Noom, Quartet and TRIP HOFER Talkspace led the way. Today, there are several innovative companies that CEO, AbleTo address depression, addiction, anxiety and other issues. We sat down with Trip Hofer, CEO of AbleTo, to understand his perspective on NYC’s appeal for this sector.

1 Why has NYC become a hub 2 What excites you about the 3 What trends are we likely for behavioral health? behavioral health sector? to see in 2020? New York City offers so many of I’ve spent most of my career in I think we can expect a shift in the the foundational elements needed health care, and I’ve never seen conversation from access to quality. to drive innovation: high-quality anything like what is happening Already we are seeing recognition entrepreneurs, great academic in the mental health space today. that access doesn’t guarantee and financial partners, and a large There is a real sense of urgency meaningful results, and there will be number of mental health experts. to solve for the epidemic of unmet more pressure to deliver measurable The city is also committed to needs, and everyone shares the outcomes. We will also see payers reducing stigma and improving same commitment to finding begin to tire of point solutions as access to mental health care by workable solutions. It’s fostering more companies enter the virtual fostering initiatives like Thrive true collaboration across so many behavioral health market, driving NYC. All of these things create a stakeholders in a way that is really consolidation and development of uniquely appealing environment unique and inspiring. more comprehensive solutions. for innovative mental health care companies to call home.

21 WHAT ARE YOUR ERIC KINARIWALA Founder & CEO, Capsule

Predictions Over THE FOCUS WILL SHIFT from zero- sum negotiations over payments to the Next 5 Years? focus on how to create more overall value for the consumer and the entire From companies that deliver telemedicine, health system by leveraging data and gene therapy or address the social determinants technology to deliver better healthcare of health, NYC sits at the center when it comes experiences and outcomes. to evolving care models and envisioning unprecedented treatments and therapies. Across all sectors, NYC will grow as a center for healthcare innovation. Here’s what investors and entrepreneurs expect in the next five years. TREVOR PRICE CEO, Oxeon Holdings General Partner, Town Hall Ventures

CONTINUING TO ADDRESS SOCIAL DETERMINANTS is a long-term journey to integrate all components and drive social BRENTON FARGNOLI, MD change — but as a key part of healthcare Partner, Alley Corp delivery, it is essential to improving health and well-being. NEW CARE DELIVERY MODELS DRIVING outcomes for medically and/or socially complex patients. In addition, consumerization of healthcare driving an improved patient experience.

ROD WONG, MD Chief Investment Officer & Managing Partner, RTW Investments

NINA TANDON, PHD WE’RE ESPECIALLY EXCITED about genetic CEO & Co-Founder, EpiBone medicines. We expect dramatic advancements and new therapies to emerge, both with existing and new therapeutic modalities. TELEMEDICINE – I love seeing the power of remote technology impacting global health.

MICHAEL MENG BRAD SVRLUGA CEO, Stellar Health Co-Founder & General Partner, Primary Venture Partners MEDICARE ADVANTAGE WILL CONTINUE GROW and AS VALUE-BASED CARE CONTINUES TO GROW in get to over 50% penetration and importance, a whole new generation of companies will lead the way on even newer will be built. The platform solutions and services that value-based models. innovate in that market will continue to be exciting. 22 NYC DIGITAL HEALTH 100 See page 10 for categorized list.

Abacus Insights | Analytics AbleTo | Behavioral Health Aetion | Analytics AiCure | Clinical Trials Belong.Life | Patient Engagement Benestream | Social Determinants of Health The Team BetterPT | Provider Tools BioDigital | Provider Tools Blink Health | Pharmacy Candid | Dental Capital Rx | Pharmacy EDITOR Capsule | Pharmacy CareDox | Care Coordination Cecelia Health | Patient Engagement Cedar | Patient Engagement Centivo | /Benefits Cipher Health | Care Coordination Cityblock Health | Social Determinants of Health Click Therapeutics | Digital Therapeutics BUNNY ELLERIN Cohero Health | Patient Engagement President, Cota | Analytics Covera Health | Analytics NYC Health Business Leaders CredSimple | Provider Tools Cureatr | Provider Tools Cylera | Security Dadi | Fertility Doctor.com | Provider Tools Eden Health | Delivery Models Eligible | Provider Tools Extend Fertility | Fertility Ezra.AI | Diagnostics & Monitoring Force Therapeutics | Delivery Models Galileo | Delivery Models ASSOCIATE EDITORS Happify Health | Digital Therapeutics Headway | Provider Tools Healthify | Social Determinants of Health HealthReveal | Analytics ZACK CAPLAN Hero | Direct-to-Consumer Imagen Technologies | Diagnostics & Monitoring MBA Student, Jumo Health Patient Engagement K Health | Delivery Models Columbia Business School Kindbody | Fertility Klara | Provider Tools Kognito | Patient Engagement Lively | Direct-to-Consumer Maven Health | Fertility Mavencare | Care Coordination AARTI RAVIKUMAR MD, MBA MDCalc | Provider Tools Medigate | Security Director of Transformation, Mediquire | Analytics Medly Pharmacy | Pharmacy Atlantic Health System Nanowear | Diagnostics & Monitoring Nomad Health | Provider Tools Noom | Behavioral Health Oculogica | Diagnostics & Monitoring One Drop | Digital Therapeutics Overture Life | Fertility Owkin | Analytics CONTRIBUTORS Pager | Care Coordination Paige.AI | Diagnostics & Monitoring Parachute Health | Provider Tools Parsley Health | Delivery Models Peerbridge Health | Diagnostics & Monitoring Phosphorus Diagnostics | Diagnostics & Monitoring Playback Health | Provider Tools Prognos | Analytics Progyny | Fertility Quartet Health | Behavioral Health Quip Dental | Dental ReferWell | Provider Tools BEN IDAN KUSH MODY Rightway Healthcare | Care Coordination Risalto | Analytics ASCHERMAN ELMELECH MD/MBA Student, Ro | Direct-to-Consumer RubiconMD | Provider Tools MD/MBA Student, MBA Student, Columbia Business Rx.Health | Provider Tools Sesame | Patient Engagement Columbia Columbia School & Drexel Simple Contacts | Direct-to-Consumer Simplifeye | Dental University Business School University College Slingshot Health | Patient Engagement Smart Vision Labs | Delivery Models of Medicine Somatix | Diagnostics & Monitoring Spring Health | Behavioral Health METHODOLOGY Stellar Health | Delivery Models SurvivorNet | Patient Engagement Data used in the creation of this report was obtained from Pitchbook and covered the period from 01/01/2019 Talkspace | Behavioral Health to 12/31/2019. A company was included if it (1) listed New York City as its corporate headquarters and (2) the Tempest | Behavioral Health company received seed, angel, early-stage or late-stage funding during the period 01/01/2019 to 12/31/2019. Tend | Dental Deal date was used to determine placement in 2019. Companies that won grant funding, prize money or The Well | Delivery Models acceptance into accelerators/incubators were not included in the analysis. Transparency Life Sciences | Clinical Trials Pitchbook places companies into various healthcare categories and subsectors, which we reviewed TrialSpark | Clinical Trials and used or augmented in our analysis based on our knowledge of the industry. Truveris | Pharmacy Tyto Care | Delivery Models Unite Us | Social Determinants of Health DISCLAIMER Verana Health | Analytics This report is provided for informational purposes only. Where possible, we verified information obtained from Vesta Healthcare | Care Coordination Pitchbook through publicly-available sources (e.g. company press releases, news reports) and made judgment calls VirtualHealth | Care Coordination based on that. If you find an error in the report, please contact us at [email protected] so that we can correct it. Wellthie | Insurance/Benefits Wellthy | Social Determinants of Health 23 Zipari | Insurance/Benefits Zipdrug | Pharmacy NYC Health Business Leaders is a professional community of 3,000 senior executives who are leading, innovating and driving healthcare forward. For more information visit www.nychbl.com or follow us @nychbl.

Thank you to Sanofi, our inaugural sponsor, for their partnership

Thank you to Cooley for ongoing support