By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    stress management for healthcare workers
    3 Tips For Healthcare Professionals: How To Stay Beautiful, Healthy, and Happy
    November 2, 2021
    importance of relaxing on the weekend for your health
    Importance of Relaxing During the Weekend for Optimal Health
    March 25, 2022
    LASIK Eye Surgery
    What Is LASIK Eye Surgery?
    May 16, 2022
    Latest News
    Getting Back in the Game: Sports Injuries Rehabilitation Tips
    May 31, 2023
    4 Signs It’s Time to See a Therapist
    May 24, 2023
    11 Ways To Modernize Your Private Practice
    May 17, 2023
    How to Recognize the Signs of Hormonal Imbalance in Men
    May 29, 2023
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    1.1 Million Elderly Taken to ED for Adverse Medication Reactions
    April 18, 2011
    Botox May Dampen Emotions
    June 7, 2011
    Bladder Cancer Care in America Gets a Failing Grade
    July 12, 2011
    Latest News
    MRI Sedation Options: What You Should Know Before Screening
    May 17, 2023
    What is the Process of Creating Medicine from Nature?
    May 2, 2023
    Choosing the Right Treatment Option for Varicose Veins
    May 2, 2023
    What Are Wrong-Site Surgeries and How Do They Occur?
    April 27, 2023
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Digital Health Startups and Strategically Integrated Investors
Share
Sign In
Notification Show More
Aa
Health Works CollectiveHealth Works Collective
Aa
Search
Have an existing account? Sign In
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Finance > Digital Health Startups and Strategically Integrated Investors
BusinesseHealthFinanceTechnology

Digital Health Startups and Strategically Integrated Investors

ShahidShah
Last updated: 2015/03/10 at 8:00 AM
ShahidShah
Share
4 Min Read
digital health startups
SHARE

digital health startupsI have the pleasure of meeting or speaking with many digital health, health IT, medTech, and life sciences (especially genomics and bioinformatics) startups every week. As a serial entrepreneur and angel investor myself I know how hard it is these days to get to product/market fit while working with top-notch investors who understand how to help scale a business.

digital health startupsI have the pleasure of meeting or speaking with many digital health, health IT, medTech, and life sciences (especially genomics and bioinformatics) startups every week. As a serial entrepreneur and angel investor myself I know how hard it is these days to get to product/market fit while working with top-notch investors who understand how to help scale a business. Last week I wrote about how strategically integrated investors help de-risk innovations and I got some great questions via e-mail about how cofounders and startups should go about seeking such investors.

First, try to attend the MidAmerica Healthcare Venture Forum in Chicago next week. The advice, panels, and networking should be top-notch and worth the effort.

Second, try to figure out how you’re going to explain the risks in your business and de-risk your innovations.

More Read

healthcare cybersecurity

3 Pressing Healthcare Cyber Security Challenges and How to Address Them

Cutting-Edge Medical Innovations Are Disrupting Healthcare
Types of Remote Access Solutions for Hospitals
Top 10 Reasons to Improve Medical Website Accessibility
The Top 5 Considerations for Successful Medical Device Software Development

What I call the “Venture Development Lifecycle” (VDLC) is the path from an idea to product/market fit and profitability. As you go from one phase to another in the VDLC and are seeking investors to join you on the journey you’ll have one key task at each phase: show how you’ve already reduced risk in the previous phases and which risks remain in future phases. Some of the highest risks for startups come when a venture is moving from one capital raise phase (e.g. seed or angel) to another (e.g. VC, growth equity, or PE).

Try and answer these questions for the various digital health investment phases:

  • Seed: how high is the innovation risk? Can you show that the idea works elsewhere?
  • Angel: have the requirements and innovation risks been ironed out enough so that a product’s technical risks are all that remain before landing a customer?
  • Super angel: Have the technical risks been ironed out so that pilots and initial customers are showing success?
  • Series A institutional: Have the product/market fit risks been ironed out so that it’s clear that scalable sales are the next barrier?
  • Series B and further: Have the initial sales risks been removed so that further scale and support are now the next barrier?

As you go through the VDLC you’ll see it’s mostly a matter of understanding your risks and ironing out the key ones at each stage. You should seek out investors at each stage that clearly understand the de-risk’ing process and could potentially work together as either a syndicate or a strategically integrated value chain. When you interview investors, see how many of them have worked together in the past in either a vertical integrated manner or even as a loosely affiliated approach. The more you lay out your process, the more you understand your risks and help investors understand how you’re de-risked, the easier time you’ll have in the capital raise process.

The post Digital health startups should de-risk using strategically integrated investors appeared first on The Healthcare IT Guy & Digital Health Nexus.

digital health / shutterstock

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
ShahidShah March 10, 2015
Share this Article
Facebook Twitter Copy Link Print
Share
Previous Article Celebrating Partnerships in Cancer
Next Article Hospital Ranking Disagreement Isn’t the Only Such Problem

Stay Connected

1.5k Followers Like
4.5k Followers Follow
2.8k Followers Pin
136k Subscribers Subscribe

Latest News

medical bills
Who is Responsible for Paying the Medical Bills After an Injury?
News June 1, 2023
sports injury rehabilitation
Getting Back in the Game: Sports Injuries Rehabilitation Tips
Health May 31, 2023
brush your day
How Many Times A Day Should You Brush Your Teeth?
Dental health May 29, 2023
Chiropractic Laser Therapy: A Beacon of Hope for Chronic Pain Sufferers
Chiropractic Laser Therapy: A Beacon of Hope for Chronic Pain Sufferers
Therapies May 29, 2023

You Might also Like

medical answering service
Technology

How Medical Answering Services Can Improve Patient Care

May 25, 2023
pet health apps
News

9 Best Apps for Pet Owners Trying to Keep their Animals Healthy

May 22, 2023
Biotechnology
Technology

What Are The Benefits of Biotechnology?

May 17, 2023
CRM for pharmaceutical
Technology

The Top Benefits of CRM Tools for Pharmaceutical Brands

May 11, 2023
//

We influence million of users and is the most authentic source of information on healthcare business and technology news.

Quick Links

  • About
  • Contact
  • Privacy
Subscribe

Subscribe to our newsletter to get our newest articles instantly!

Follow US

© 2008-2023 HealthWorks Collective. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?