Survey: 7 percent of Health 2.0 companies have exited

By Brian Dolan
02:25 am
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SurveyAt the Health 2.0 Spring Fling conference in Boston this week, Health 2.0 co-founders Matthew Holt and Indu Subaiya shared some preliminary data points from a survey they conducted with companies that have demoed or participated in a Health 2.0 event since the first one in 2007. All told more than 360 companies have been on-stage at Health 2.0 events, and while that figure includes a mix of companies at different stages of maturity, they have all been relatively young companies. The survey data that Holt and Subaiya shared included responses from 132 of those Health 2.0 companies.

Of that group, about 7 percent have made a "successful exit" -- meaning they were acquired (the case for nearly all) or they went public (maybe one or two?) Some 48 percent of the companies have experienced "rapid growth"; 40 percent have experienced "incremental growth"; and just 5 percent have folded, according to the survey.

About 95 percent of companies that responded to the survey said they had customers. The most popular answer for customer type was consumers, then hospitals, physician practices, insurers, and finally employers.

For business models, about 17 percent relied on advertising, some 37 percent brought in subscription revenues, 27 percent charged per transaction, and 19 percent focused on licensing fees.

About 40 percent of the companies only had between one and five employees. Some 25 percent had six to 20; 20 percent had 21 to 100; and about 5 percent had between 101 and 1,000 employees.

While 95 percent said they had customers, only 85 percent have revenues. Of those generating revenue about 57 percent are profitable.

Another interesting statistic: 70 percent have forged some kind of a partnership with another company. The most popular to least popular types of partners were: a technology company, hospital, foundation or non-profit, a professional association, a health plan, "other", media company, government agency, or retail company.

Finally, most of those Health 2.0 companies that responded to the survey said more than anything they need publicity and promotion (59 percent); additional capital (55 percent); sales (54 percent); talent or expertise (31 percent); pilots (30 percent); preliminary customer feedback (13 percent); or "other" (5 percent).

All in all an interesting set of metrics from the new Health 2.0 Index -- Holt and Subaiya plan to present more data at their fall event in San Francisco this coming October.

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