Reducing staffing pressures tops healthtech investment criteria — LSX panel

From left to right: Rachel Ford Hutman (Ford Hutman Media/ moderator), Rana Lonnen (dRx Capital, Novartis), Michael Niddam (Kamet Ventures), Steve Tolle (HLM Venture Partners) , Assaf Barnea (Sanara Ventures)

Reducing staffing pressures is the top investment criterion in healthtech innovations, speakers of ‘The fight for healthtech investment opportunities post pandemic’ panel at LSX World Congress 2022 stated.

The panelists unanimously agreed that healthcare should see technologies that will address staffing issues, a huge problem globally and a huge opportunity for digital technologies which will be able to come in and address the issue in the most productive way. Diagnostics and remote monitoring will eventually become gold standards too, the panelists added.

For Christoph Kausch, managing partner of Pan-European healthtech capital investor MTIP, other key trends health technologies need to address are the corrective and preventative care, the decentralised care, personalization as well as value based care models. “Having technologies driven by digital solutions that address these points is a clear market beat,” he said adding the importance of collecting evidence and using specific verticals, such as AI to analyse and understand data.

Kausch and co-panelist Steve Tolle, general partner at Massachusetts-based venture capital company HLM Venture Partners, concurred that there are opportunities in the digital mental and behavioural health. They described it as a huge market which has seen demand rising since some years ago and is doubling each year still.

The panel continued discussing what an investor seeks in a healthtech company today. Astonishingly, the speakers revealed that the majority of companies reaching out to investors have not done any due diligence.

Asked what advise he has for companies seeking investment during this time, Tolle said: “Being able to really demonstrate driving outcomes or driving cost savings is going to be critically important always.”

Kausch added: “In terms of preparing for a company to seek investment, I really would like to see medical evidence, to see that the business model is building the fundamentals of economics – things like initial market protection, and then obviously from a company’s perspective.”

Rana Lonnen, managing director at dRx Capital, a fund backed by Novartis, concurred adding that the market is “very crowed” and investors want to quickly understand what companies are trying to address.

Speaker Assaf Barnea, chief executive of healthcare investment platform Sanara Ventures, further pointed to the importance of embracing and giving a chance to new disciplines/technologies that are now converging such as gaming for health and cyber. “We [investors] should be there in order to make these technologies work and disrupt the marketplace,” he said.

Overall, there is a rising concern about investment into new and emerging players in the healthtech space – not only given how crowded the market is with new players but also the current turbulences on the stock market.

Date published: May 11, 2022

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