Whole lotta money… gotta go somewhere… digital health anyone?
Thanks to the Federal Reserve and other policies we have a ‘whole lotta money’ that’s ‘gotta go somewhere’.
Digital health is getting a share and having a ‘funding moment’ to the tune of a $20B run rate in 2020. Distance monitoring, telehealth, care management, advanced analytics and others are all accelerating in the Age of COVID.
The number of large deals and number of exits (IPO and SPAC) are on record pace in this space. Publicly traded digital health darlings like Teledoc (TDOC) and Livongo (LVGO) have gathered a lot of headlines and now each other.
Are you capturing the number and type of deals that will make your portfolio successful?
The last time the pace was similar for funding pre-public healthcare was in the Roaring 90’s. We were part of a team who received about 50 deals a week that survived initial screening. We found a systematic approach to analysis and value-based decisions that increased our likelihood of successful outcome.
Most individuals or groups who invest in digital health plays have a developed a model or set of criteria and process for decision making. But are they sufficient to meet your needs at the speed we are moving?
The process for sorting and screening a large number of opportunities can be accelerated with enhanced predictability and outsourcing based on risk and reward. Identifying the business risk, which in healthcare may be different than other markets, is a key success factor.
For example, everyone now has a COVID-19 claim. Some are valid. Some require additional development. Some, while technically valid may lack market understanding, dooming their likelihood of success. There is a lot of noise.
Evaluation of Data Strategy is key to reduce risk, optimize reward, and accelerate deals
Data strategy is increasingly important yet still often overlooked by health tech companies and the investors that evaluate them. Types, sources and uses and the state of movement and interoperability are often not understood in the context of market growth, business viability and sustainability.
Whole lotta money… gotta go somewhere, right? Rather than accepting a high risk of not successfully reaching your portfolio goals, work with Green Room Technologies to develop a rapid decision support that enhances your chances for understanding and reaching your goals.
Bob Teague, MD – Chief Technology Officer, Green Room Technologies – Oct 6, 2020
Learn about Green Room’s health tech investor services here!