Health Wearables and Biohacking: Investment Landscape (Part 2)
Health Wearables and Biohacking: Investment Landscape (Part 2)
Investors picking cherries: from smart watches and jewelry to clothing and beyond.
“One ring to rule them all”
This article serves as a follow-up to my initial piece on Health Wearables.
Have you ever heard of the famous quote "one ring to rule them all"? If you're a Lord of the Rings fan (just like me), it's probably something that rings a bell. Personally, I find the analogy with the Oura Ring fascinating and witty. Just as "The Sauron Ring" signifies control and influence, the Oura Ring symbolizes a contemporary version focused on empowering individuals to manage their health and well-being.
The Oura Ring has revolutionized the wearable technology market, and its success can be attributed to the vision and dedication of its founders Kari Kivela, Markku Koskela and Petteri Lahtela. Oura emerged from Finland in 2015 with a groundbreaking vision for a sleep-tracking smart ring. The founders' ambitious goals were surpassed on Kickstarter, generating tremendous support from backers. In 2016, the company secured the first investment round of $5.3 million, propelling its growth and setting the stage for its journey.
Fast forward to today, Oura is now valued at $2.55 Billion after selling 1 Million Rings.
To date, Oura has participated in 9 investment rounds since 2015, raising a total of $148 million, the latest known: a $100 million Series C funding round led by Temasek, Jazz Venture Partners, The Chernin Group, Bedford Ridge Capital, Japan’s One Capital and Elysian Park. Existing investors Forerunner Ventures, Square, MSD Capital, Lifeline Ventures, Metaplanet Holdings, Next Ventures and Salesforce CEO Marc Benioff participated.
Hold on a second, 2023 is shaping up to be quite promising as well: Oura made headlines in May of this year with its acquisition of Proxy, in an all-equity transaction valued at $165 million. This strategic move opens up exciting possibilities for the integration of Proxy's digital identity technology into the Oura ring, enabling secure and private sharing of health data. By linking the ring to a health data-sharing platform, biometric data can be leveraged to authenticate the wearer's identity and ensure the utmost privacy and security of their data. Looking ahead, the potential expansion of the Oura ring may encompass smart wallet capabilities, providing added convenience, and could even include provisions for serving as a digital home or car key, further enhancing its multifaceted utility.
Now, let's delve into the realm of major investments taking place in the wearable technology industry. It's crucial to explore these investments from two perspectives: the sports industry and the health industry. Although the available information primarily focuses on sports, let's begin our exploration from there.
Based on this McKinsey study, connected fitness is one of the categories that has received the most investment in the sports industry.
How much was invested? According to a SportsTechX report, in 2022, €2.115 million were invested in sports companies within the activity and performance category. The same report informs that 17.2% of this investment was allocated to wearables.
You know the drill, there's always a top five to explore. So, without further ado, let's dive into the top 5 investment deals of 2022 in both the sports and health industries:
Kinexon: the company produces wearable sensor to track professional athletes and entertainment artists. Funding in 2022: $130M
GOQii: India-based fitness technology company offers a wearable fitness band and mobile app as a personalised remote health coach. Funding in 2022: $50M
Playermaker: the company uses a wearable sensor with a six-axis motion smart sensor, built with a gyroscope and accelerometer, to help users improve their football performance. Funding in 2022: $40M
Levels: it enables people to see how various food and exercise affects their blood glucose levels, actively suggesting tips for stabilization. Funding in 2022: $38M lead by a16z.
Sibel Health: provides a variety of wearable technology, which gathers data on people in vulnerable health in its real-time Anne View App. This enables the startup to monitor patients’ health remotely, allowing patients to be treated from the comfort of their homes. Funding in 2022: $33M
The staggering figures speak for themselves, making it evident that the wearable technology industry is very attractive for startups and venture capitalists. However, it's not just the smaller players who are captivated by this market. Major tech companies are also actively making their mark in the wearables space. So, what exactly is happening behind the scenes with industry giants like Apple, Google, and Sony?… Let's delve into their endeavors:
Apple's latest Smart Fabric patent unveils an intriguing integration of health sensors within a future Apple Watch band. This development hints at three significant forthcoming features: glucose/blood sugar monitoring, the capability to measure blood pressure, and the ability to determine body temperature.
Integrating more sensors directly into the band provides a lot more data with greater levels of accuracy, and opens up a few more doors in terms of what the Apple Watch is able to track.
Oh, and I can't forget to mention this awesome company called Wristcam, even though it's not an Apple product. I'm totally in love with it! They've created a camera specifically designed for the Apple Watch, allowing you to snap 4K photos, record HD videos, and even send live video messages. Since 2013, they've raised $76 million through six different investment rounds, pretty cool right?
Sony, too, has shown interest in this field, albeit with a distinct approach. Can you imagine the convenience of having a miniature air conditioner embedded in your clothing during scorching hot days? Sony aims to fulfill this vision with their product called REON POCKET—a wearable thermal device designed to provide direct cooling or warming to the body part it comes into contact with.
And of course we can’t forget about the biggest search engine on earth. Over the past few years, Google has actively engaged in the wearable technology realm, showcasing its commitment to the industry. In a significant move, the company acquired Timex smartwatch technology in late 2019, investing $40 million to further solidify its presence. Subsequently, in 2021, Google made a notable acquisition by purchasing Fitbit for a staggering $2.1 billion. This strategic move not only grants Google access to an established hardware manufacturer but also signals a strong potential for direct competition with the dominant player, the Apple Watch.
However, it's important to note that the path hasn't been entirely smooth for Google. In March 2020, the company initiated the Jacquard project, aiming to integrate computing capabilities into clothing, bags, and accessories. Despite dedicating seven years to experimentation, recent developments indicate that Google is now discontinuing this endeavor.
As we see, the demand for healthcare wearables is on the rise, with companies, both established and emerging (startups), developing new functionalities to cater to this growing market. However, widespread acceptance by consumers and healthcare providers may be slow due to several challenges:
Doctors may be skeptical, with concerns about the utility and accuracy of data from wearables.
Data privacy and cybersecurity threats also pose significant concerns.
Increased regulation may be imposed as wearables become integrated into electronic health records and direct more patients into the healthcare system.
Despite the challenges, I am very excited about the future. With the rapid advancement of sensor technology, data analytics, and AI (of course), we can expect a profound transformation in personalized healthcare. Health wearables will transcend their current capabilities, evolving into sophisticated companions seamlessly integrated into our daily routines. I can imagine that these smart devices will offer real-time monitoring of vital signs, early detection of health issues, and personalized insights for preventive care. Improved accuracy, reliability and easy-to-use interfaces will revolutionize the way we manage our well-being, allowing us to make proactive decisions.
Stay tuned for my upcoming post where I delve into the cutting-edge advancements in wearables, providing a glimpse into the future of this technology and the key regulations shaping the industry.
+ endurance is good,
Martin
P.S. I used some of the following sources to obtain the data for this article:
(1) McKinsey, (2) SportsTechX report, (3) Deloitte , (4) Crunchbase