Presentation at Medica, Nov 17, 2015, in the Connected Health Forum. Theme is "Israeli Digital Health- An Investors Persective". Four sections: Ingredients of Israel Success, Israel Venture Industry, Israel Health Sector, Israel Digital Health Investment

1. 1 Nov, 2015
Israeli Digital Health:
Investors Perspective
Levi Shapiro, Founder, mHealth Israel

2. 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

3. Agenda
3
Triggers for Digital Health Investment
Israel- Venture Capital Background
Israel Health Sector
Israel Digital Health Investment

4. Theme I: Regulatory Trigger (Obamacare)
4

5. Theme II: Consumerization of Healthcare (Walgreens, CityMD, etc.)
5
Source: RockHealth

6. Theme III: Personalized Medicine + Portability & Sharing of Health Information
6
Source: RockHealth

7. Thesis: 3rd Wave of Digital Health Investment
Wave I
Remote Telemedicine
Wave II
Enterprise Software
Wave III
Consumerization of Big Data
Trigger
Obamacare, 2009
Example: SHL; Natali
acquired by Jinpeng-Sanpower
2014, ~$100M
dbMotion -acquired by Allscripts 2013, $235M
AeroScout -acquired by SBD 2012, $240M
iMDSoft -acquired by TPG 2012, $80M
250+ Israeli digital healt startups
Sensors, applications, big-data,
machine-learning, AI, etc

8. Thesis: Big Data, Personalized Medicine- In Your Pocket
8

9. Investment Thesis: Migration of Spending to Preventitive Solutions
9

10. Investment Thesis: Aging Population
10

11. Investment Thesis: Optimal Period for Wearables Investment Has PASSED
11

12. Late for
Wearable
Investments
12

13. Agenda
13
Triggers for Digital Health Investment
Israel- Venture Capital Background
Israel Health Sector
Israel Digital Health Investment

14. 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 companies
1,159 IT &enterprise SW
1,018 Life Science Startups
Out of which 550 in Medical Devices and
210 in Digital Health
Power
Of
DistanceDynamic
Open
Culture
Informal
yet
Efficient
Society
Strong
connections
Direct
Feedback

15. Building Block I: R&D Allocation
15
Country Rank 1st 2nd 3rd 4th
Business 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 M
GDP (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)

16. R&D Encourages Higher Quality Innovation
16
Level of Innovation
QualityofScientificResearch

17. Building Block II: Skilled Workforce
17
Proportion of Population
with Bachelors Degree
Among Life Sciences Hubs

18. Building Block III: International R&D Centers Are a Lifeline for Local Tech Industry
18

19. CASE STUDY: SAMSUNG + Digital Healthcare
19

20. Agenda
20
Triggers for Digital Health Investment
Israel- Venture Capital Background
Israel Health Sector
Israel Digital Health Investment

21. Israeli VC Funds: More Money Flooding into the Market
21
Three Key Ingredients of Israel Success
Israel Venture Industry
Israel Health Sector
Israel Digital Health Investment
IVC, 2014

22. Total Annual Exits: Trended
22 PWC, 2014

23. Proportion of IPOs to M&A
23 PWC, 2014

24. Agenda
24
Triggers for Digital Health Investment
Israel- Venture Capital Background
Israel Health Sector
Israel Digital Health Investment

25. GDP Allocation: 7.5% VS 18% of GDP
25

26. Health in Israel: Relatively Good Outcomes
26 OECD, 2012

27. CVD Mortality in Israel
27
OECD, 2011
Israel Ministry of Health, 2013
Ischemic Heart Disease, Mortality Rates

28. Comparatively Efficient Health System Optimization
28 Israel, MOH; OECD

29. Factors That Drove Israel Toward Prioritizing Digital Healthcare Adoption
29
Multi-Morbidity
Aging
Complexity
Resources Shortage

30. HMOs bring 24 YEARS of universal, longitudinal EMR data that startups can access
30
Example from Clalit, largest
HMO with 54% market share

31. International Recognition: OECD
31
“ Israel’s community‐focused
information system sets an
international benchmark in
excellence and demonstrates
commitment to quality
monitoring
and improvement. ”
OEDC Report, 2012

32. Agenda
32
Three Key Ingredients of Israel Success
Israel Venture Industry
Israel Health Sector
Israel Digital Health Investment

33. Israel Life Sciences Industry by Sub-Sectors
33 IATI, 2015

34. Source: mHealth Israel Database
140

35. Source: mHealth Israel Database
28

36. 2014 FASTEST GROWING DIGITAL HEALTH CATEGORIES
36 Source: mHealth Israel Database

37. mHealth Israel Database Breakouts
37