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Rock Health, a Silicon Valley venture capital fund and research firm, for the first time released a list of digital health startups that are likely to go public in the next 12 months.
To come up with the list, Rock Health looked at past digital health IPOs as well as at ones that are planned. The firm found that companies tended to IPO at an age of about 10 years, and after raising roughly $200 million. So Rock Health compiled a list of other venture-backed companies in a similar spot.
Five digital health companies recently announced plans to go public: Livongo, Health Catalyst, Change Healthcare, Phreesia, and Peloton. Excluding Change Healthcare, which is a spinoff from McKesson, the other four companies raised an average of $425 million from investors.
The announced IPOs end a multi-year stretch without any public offerings in the industry.
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"Now we're seeing a group that is mature enough for investors to take an interest in," said Bill Evans, the CEO and managing director of Rock Health. "The public markets are beginning to understand that these companies are transforming healthcare. They're realizing that there's a lot of value to unlock."
Read more: Digital health startups worth $7.6 billion are set to go public, breaking a 3-year drought. Here's what 5 top VCs are keeping an eye on.
Rock Health reports $4.2 billion was invested in digital health in the first half of 2019. That puts venture-capital investment in digital health on pace to exceed 2018's total of $8.2 billion.
23andMe is a California-based biotech company founded in 2006. The company sells DNA-testing kits that let users send in a sample of their spit to its labs. With the results, people can explore their ancestry, see if they're likely to develop certain medical problems, and see if they carry genetic markers for certain hereditary conditions.
23andMe has more than 10 million users and is sold online and in stores like CVS and Walgreens. The company has raised $792 million and is valued at $2.5 billion, according to PitchBook.
American Well — $972 million
American Well is a telemedicine company based in Boston and founded in 2006. The company connects patients with doctors by video for immediate care.
Around 150 million people have access to American Well through their health plans, according to the company. Over 130 health systems use the company, including Cleveland Clinic and NewYork-Presbyterian.
American Well has raised about $486 million, and is valued at $972 million, according to PitchBook.
DNAnexus
DNAnexus is a California-based biotech company founded in 2009. The company provides a cloud-based data analysis and management platform for DNA sequence data. The company has created a global network for genomics and other biomedical data.
In February 2019, the company announced it had raised $68 million in a funding round.
HeartFlow — $1.56 billion
HeartFlow is a medical technology company founded in 2007. The company's mission is to change the way cardiovascular disease is diagnosed and treated.
The company created a new test that uses a CT scan to see if the patient's coronary arteries are blocked. Currently, the procedure requires a test that involves threading a catheter from the groin up to the heart to measure blood flow. Around one million of these tests are done worldwide every year, according to the company
HeartFlow has a $1.56 billion valuation, according to PitchBook.
Modernizing Medicine
Modernizing Medicine is a software company headquartered in Florida and founded in 2010.
The company has created specialized software to help physicians and medical staff input information and data. The company also offers electronic health records, practice management, revenue cycle management and data analytics for doctors.
The company created devices to monitor a patient's health, including ingestible sensors, a wearable sensor patch, and an application for mobile devices. The company is known for 'smart' pills that track when you take them.
Proteus has raised $420 million and is valued at about $1.5 billion, according to PitchBook.
Sharecare
Sharecare is an Atlanta-based digital health company founded in 2010. The company created a platform for patients to collect, manage and have better access to their health records and other information in one place. Dr. Mehmet Oz, the celebrity surgeon, helped start the company.
The company has raised a total of $390 million from investors, according to PitchBook.
Welltok — $625 million
Welltok is a Colorado-based healthtech startup founded in 2009. The company analyzes consumer data to predict healthcare needs and connects users to interactive programs that help them to achieve their health goals. The company is used by insurers, health systems, and employers.
In 2018, the company said it raised $75 million in a funding round. Welltok is valued at $625 million, according to PitchBook.
ZocDoc — $2 billion
ZocDoc is an online medical appointment booking service founded in 2007. The company lets patients book appointments with doctors online. Patients can often be seen within 24 hours, according to the company.
ZocDoc had a valuation of about $1.8 billion in 2015, according to PitchBook. Six million patients use ZocDoc every month,according to a profile in Fortune.
