Healthcare Innovation Report and Pronounced 2020 “The Year of Digital Health Investment.” No Sooner Had We Said That Than Q1 2021 Went Into Overdrive

NEW YORK Healthcare Q1 Innovation 2021 QUARTERLY REPORT INTRODUCTION

At the start of this year, we published the 2021 New York Healthcare Innovation Report and pronounced 2020 “the year of digital health investment.” No sooner had we said that than Q1 2021 went into overdrive. We’ve never seen this much funding, nor proliferation of companies in digital health.

As a result of overwhelming feedback and an insatiable appetite for this information, we will publish quarterly updates to track growth, progress and keep the digital health community informed of industry trends throughout the year. While it’s important to track national and global trends, this past year has reminded us that it’s never been more vital to stay abreast of what’s happening in the New York market.

As Vesta Healthcare CEO Randy Klein recently remarked: “I can imagine a world in which NYC is as synonymous with health-tech as it is with Broadway and finance.” Hear, hear!

The quarterly updates are made possible by support from our two sponsors: J.P. Morgan and Deloitte & Touche LLP.

BUNNY ELLERIN Co-Founder & CEO, NYC Health Business Leaders

OUR SPONSORS

2 BY THE NUMBERS

2021 is now the largest quarter on record COMPANIES in New York healthcare funding history. RAISED To put this in perspective: it took until 64 September 2020 to reach the same level of investment that we’ve already $2.4B hit in Q1 2021. in Q1 2021

FUNDING BY SECTOR (M) 55% VIRTUAL CARE & COORDINATION $1,331M 14% DATA & $311M PLATFORMS 13% PATIENT ENGAGEMENT $310M 11% BIOTECH $258M 5% MENTAL HEALTH $128M 3% INSURANCE & BENEFITS $67M

FUNDING BY STAGE* LATE STAGE 89%

EARLY STAGE 11%

0 20 40 60 80 100

*Early stage includes pre-seed, seed and Series A. Late stage includes Series B and beyond.

3 Given the unprecedented amount of investment this quarter, we wanted to learn more about some of the most interesting companies in the Top 20 as well as what attracted early investors to these innovative start-ups.

FOUNDER & FUNDER

Oak HC/FT is an investor in Vesta Healthcare

PEOPLE WANT TO AGE SAFELY AT HOME, AND THAT’S NEVER BEEN more apparent than right now. For many, caregivers—professionals, family, friends 2020 AND 2021 HAVE BEEN PERIODS OF —are key to making that reality. But too RAPID GROWTH FOR OUR COMPANY. In often being a caregiver is hard, lonely, and the coming year, our greatest opportunity and disconnected from the rest of the greatest challenge is linked: digesting the new providers delivering care. Vesta is business that we’ve won in the past year. Looking changing that by putting caregivers’ into 2022, we have to implement and scale our new insights at the center of their care model clients while expanding our pipeline. Likewise, we and creating a truly unique, unified will need to make some hard choices about how experience around health at home. we’re going to manage our company in a post- COVID world. ANNIE LAMONT Co-Founder & Managing Partner, RANDY KLEIN Oak HC/FT CEO, Vesta Healthcare

What do the next 12-18 THE FIRST QUARTER OF THIS YEAR months look like? CONTINUED at a record pace for investment in digital health. The COVID pandemic has heightened awareness of societal inequalities and inefficient systems in WITH NEW CAPITAL COMES healthcare, and investors have doubled down INCREDIBLE resources and the opportunity supporting companies and technologies that to exceed projections. Our greatest challenge is improve access to care, target underserved how we address increasing market demand, populations, and create disruption in while maintaining peerless customer traditional care delivery models. Our many satisfaction. We have built the industry’s first clients addressing these issues report strong enterprise pharmacy platform (JUDITM) to investor demand. Given the size of the ensure we have the scale, flexibility, and addressable market, we expect to continue to efficiency to maintain a significant competitive see investment where economic opportunity advantage. However, when you’re obsessed with and social impact intersect. customer satisfaction, you will always worry about even the slightest drop in performance. CHRIS LLOYD Managing Director, Healthcare and AJ LOIACONO Life Sciences, J.P. Morgan CEO, Capital Rx

4 FOUNDER & FUNDER

Longitude Capital is an investor in LEXEO Therapeutics GENE THERAPY IS MAKING SIGNIFICANT INROADS IN treating and curing a range of rare diseases, but less has been done to apply gene therapy to non-rare diseases. Yet, this is what THE OPPORTUNITY TO BUILD society has always wanted from the biopharma AND SCALE A FULLY integrated gene industry, in a single dose a cure to some of the therapy company in the NY area is exciting. most challenging diseases. The vision for LEXEO We were drawn to LEXEO based on a is to first apply gene therapy to treat rare diseases world-class scientific and management and ultimately also apply this technology to team led by Nolan Townsend and Dr. non-rare diseases. Crystal and a highly diversified and clinically R. NOLAN TOWNSEND advanced pipeline of programs. CEO, LEXEO Therapeutics SANDIP AGARWALA Managing Director, Longitude Capital

Who inspired you to How are you changing start Ro? emergency response?

MY DAD IS A PHYSICIAN WHO IN HEALTHCARE, DATA SAVED THE LIFE OF EVERY DETERMINES THE COURSE OF MEMBER of my immediate family. ACTION. Our healthcare systems’ current Whenever we had a question, we would go lack of data flow due to interoperability to him and he would solve it from beginning challenges can be the measure between life to end. And if he couldn’t, then he would and death. During a health emergency, find someone who could. Ro has taken the RapidSOS can securely deliver patient same approach by building a vertically medical and health data to emergency integrated care platform that handles communication center dispatchers, who everything from online diagnosis to the then relay this information to the EMS. We delivery of treatment to ongoing care, while are saving critical time on assessment, putting patients in control through every enabling dispatchers to make more step of their healthcare journey. informed decisions to dispatch the appropriate resources efficiently. ZACHARIAH REITANO Co-Founder & CEO, Ro MICHAEL MARTIN CEO, RapidSOS

5 FUNDING IN Q1 2021 Top 20

No. Company Description Funding (M) Stage Select Investors

Vertically integrated primary care platform powering a personalized, General Catalyst, FirstMark Capital, Late 1 end-to-end healthcare experience 500 TQ Ventures, SignalFire, Torch stage from diagnosis, to delivery of Capital, BoxGroup medication, to ongoing care.

Healthcare financial engagement platform for hospitals, health Tiger Global, Andreessen Horowitz Late 2 systems and medical groups that 200 (a16z), Thrive Capital, Concord stage clarifies and simplifies the financial Health Partners experience for patients.

Tiger Global, Kinnevik, Maverick Transformative, value-based Late Ventures, General Catalyst, 3 healthcare provider for Medicaid and 192 stage Wellington Management, Thrive lower-income Medicare beneficiaries. Capital

Community-focused, social care ICONIQ Growth, Optum Ventures, infrastructure, connecting health and Late Transformation Capital, Emerson 4 150 social care providers in secure, stage Collective, Salesforce Ventures, accountable networks. Town Hall Ventures

Healthcare marketplace helping Late 4 millions of patients nationwide find 150 Francisco Partners stage and access in-person or virtual care.

GGV Capital, Valor Equity Partners, Late Kaiser Permanente, LTS 6 Digital primary care services. 132 stage Investments, Max Ventures, Primary Venture Partners, BoxGroup

Computational pathology products designed to help doctors and Late Casdin Capital, Johnson & Johnson 7 125 patients make more informed stage Innovation – JJDC, Inc., KKR treatment decisions.

Care navigation and pharmacy Late Khosla Ventures, Tiger Global, 8 benefits solutions to simplify 100 stage Thrive Capital healthcare experience.

Clinical stage gene therapy Longitude Capital, Omega Funds, biotechnology company focused on Early Lundbeckfonden Ventures, PBM 9 85 hereditary and acquired diseases of stage Capital, Alexandria Venture high unmet need. Investments

6 FUNDING IN Q1 2021: TOP 20

No. Company Description Funding (M) Stage Select Investors

Emergency response data platform that securely links life-saving data Insight Partners, Highland Capital, Late 9 from 350M+ connected devices to 85 Transformation Capital, Forte stage emergency services and first Ventures, Alumni Ventures responders.

Global digital therapeutics platform Deerfield Management, Omega Late 11 focused on improving mental and 73 Capital Partners, ION Crossover stage physical health. Partners

Clinical provider and technology Optum Ventures, Oak HC/FT, services organization dedicated to Late Deerfield, Kaiser Permanente 12 65 connecting caregiver insights to the stage Ventures, Lux Capital, Generator rest of the care team. Ventures, Nationwide

Distributed drug discovery company Apeiron Investment Group, Future Late 13 focused on extending healthy 60 Ventures, Catalio Capital Partners, stage lifespan. Galaxy Digital

Medical practice that provides digital Insight Partners, Amigos Health, care, same-day in-person primary Late Aspect Ventures, Company 13 60 care, behavioral health services, and stage Ventures, Flare Capital, benefits navigation. Max Ventures

Reprogramming the immune system Schusterman Family Investments, to advance personalized medicine to Early Duquesne Family Office, Catalio 13 60 better detect, diagnose, and treat stage Capital Management, Dexcel disease. Pharma, Viola Ventures, TLV Partners

Changing the way prescriptions are priced, plans managed, and patients Late Transformation Capital, Edison 16 serviced through JUDITM, the 50 stage Partners industry’s first enterprise pharmacy platform.

Insight Partners, Tiger Global Telehealth company using AI to Late Management, Qumra Capital, 16 50 transform primary care. stage Qualcomm Ventures, Olive Tree Ventures, Shenzhen Capital Group

Virtual network of licensed therapists Insight Partners, Optum Ventures, equipped with the tools and services Late 18 28 Tusk Ventures, Primary Venture they need to offer high quality, stage Partners, Sound Ventures, BoxGroup in-network mental health care.

Transformation Capital, Khosla Virtual musculoskeletal (MSK) care Late 19 25 Ventures, Founders Fund, Green provider. stage Innovations, Vesalius Biocapital

Modern, medical metabolic health Early Redesign Health, Forerunner 20 business changing the way the world 22.5 stage Ventures, Threshold Ventures treats weight.

7 FOUNDER & FUNDER

Redesign Health is an investor in Calibrate

AMERICANS SPEND MILLIONS OF DOLLARS BUT ARE NOT LOSING MILLIONS OF POUNDS. Calibrate is targeting the root cause of OUR MISSION IS TO CHANGE THE WAY our underlying pandemic and putting THE WORLD TREATS WEIGHT. We’re consumers in control of their metabolic changing the conversation from willpower to health. As a founder, Isabelle’s tenacity, biology. And we’re transforming the model for empathy, and thoughtfulness are what clinical care. Our program makes decades of clinical make her an exceptional leader and research available and accessible to consumers— someone we believe will drive the today directly through telemedicine, and tomorrow category creation we need to fix a $600 through a new standard of care delivered in billion market in the largest category of partnership with existing healthcare providers and chronic disease. stakeholders.

KIRA WAMPLER ISABELLE KENYON Venture Chair, Redesign Health Founder & CEO, Calibrate

How are you transforming What characteristics healthcare payments? might distinguish successful companies?

CEDAR HAS RE-DESIGNED THE HEALTHCARE FINANCIAL EXPERIENCE with the consumer in AS THE HEALTH TECH MARKET mind, enabling them to understand and CONTINUES TO GROW, successful take control of their healthcare bills. Our innovators should quickly move beyond approach is unique. Cedar combines minimally viable products to demonstrate expertise from consumer-facing industries, market opportunity to their customers like travel, financial services and retail, to through improved quality, decreased costs facilitate next-level personalization and and/or a better experience. According to engagement with consumers in healthcare. investors, scalability and key return on investment metrics will likely separate the FLORIAN OTTO, MD, PHD most successful companies. Co-Founder & CEO, Cedar PETER MICCA National Health Tech Leader, Deloitte & Touche LLP

8 FOUNDER & FUNDER

Primary Venture Partners is an investor is Alma OUR MISSION IS TO SIMPLIFY ACCESS TO HIGH QUALITY, AFFORDABLE mental healthcare for everyone. We’re focusing on two big AS A SEED INVESTOR, I INVEST AT things: expansion and quality of care. THE INTERSECTION of exceptional We’re currently active in New York, New founders and large markets that are ripe for Jersey, Connecticut, Massachusetts, and change. As a long-time customer of therapy, Florida, with plans to expand nationally to I understand the realities of this fragmented support providers across the country. and antiquated market. It was a no-brainer We’re also hyper-focused on improving to work with Harry from the earliest concept quality of care, which means building a stages through the evolution of what would more equitable mental health industry, eventually become Alma. Four years later, getting people to the right care quickly, I’m thrilled with its progress and expanding and focusing on clinical outcomes. impact on the field. HARRY RITTER, MD BRAD SVRLUGA Founder & CEO, Alma General Partner, Primary Venture Partners

Where are you making How are digital therapeutics the biggest impact? impacting mental health?

IT’S CRITICAL THAT WE CONTINUE TODAY, PATIENTS SUFFER IN TO BRING stakeholders across sectors SILENCE, WITH THEIR CHRONIC together to invest in health, not just conditions typically being amplified by the healthcare. Unite Us has created a new challenges of their overall mental well- ecosystem of care driven from and by the being. The ability to meaningfully engage community. This coordinated infrastructure, these patients, through simple and readily comprised of both health care and social available digital tools is a game changer for services, is the future of how people receive them. We have already seen the power the services they need. To make this a digital therapeutics, particularly in mental standard for generations, we’ll work non-stop health, can play in the improvement of both in every community to ensure people live quality of life and patient outcomes for their healthy and fulfilling lives. underlying chronic conditions.

DAN BRILLMAN OFER LEIDNER Co-Founder & CEO, Unite Us Co-Founder & President, Happify Health

9 CONTRIBUTORS METHODOLOGY Data used in the creation of this report was Sandip Agarwala | Managing Director obtained from a variety of sources including but not limited to company press releases, EDGAR LONGITUDE CAPITAL filings, Crunchbase, Pitchbook, CB Insights and covered the period from 01/01/2021 to 3/31/2021. Dan Brillman | Co-Founder & CEO A company was included if it (1) listed New York City as its corporate headquarters and (2) the UNITE US company received seed, angel, early-stage or late-stage funding during the period 01/01/2021 Isabelle Kenyon | Founder & CEO to 3/31/2021. Deal date was used to determine CALIBRATE placement in Q1. Companies that won grant funding, prize money or acceptance into accelerators/incubators were not included in Randy Klein | CEO the analysis. VESTA HEALTHCARE DISCLAIMER: This report is provided for informational purposes only. Where possible, we Annie Lamont | Co-Founder & Managing Partner verified information obtained through publicly OAK HC/FT available sources (e.g. company press releases, news reports). If you find an error in the report, Ofer Leidner | Co-Founder & President please contact us at [email protected] so that we can correct it. HAPPIFY HEALTH

Chris Lloyd | Managing Director, Healthcare and EMAIL US Life Sciences J.P. MORGAN

AJ Loiacono | CEO CAPITAL RX FOLLOW US

Michael Martin | CEO RAPIDSOS

Peter Micca | National Health Tech Leader DELOITTE & TOUCHE LLP VISIT US www.nychbl.com Florian Otto, MD, PhD | Co-Founder & CEO CEDAR

Zachariah Reitano | Co-Founder & CEO RO

Harry Ritter, MD | Founder & CEO ALMA

Brad Svrluga | General Partner PRIMARY VENTURE PARTNERS

R. Nolan Townsend | CEO LEXEO THERAPEUTICS

Kira Wampler | Venture Chair REDESIGN HEALTH