1. Don Ross
HealthTech Capital
January 15, 2013
dross@HealthTechCapital.com

2. Transforming Healthcare
Improve
Quality
Leverage
Reduce
Information
Demand
Technology
Value-based Engage
Incentives Consumers
dross@HealthTechCapital.com

3. Big Themes
Behavior
Telemedicine Quantified Self
Change
Big Data Interoperability Aging in Place
dross@HealthTechCapital.com

4. Health Data Tsumani
New Health Data Sources
Drug Research Social Media Patient Records Gene Sequencing
Test Results Claims Home Monitoring Mobile apps
dross@HealthTechCapital.com

5. Actionable Data
• 11 million use mobile enabled glucose
monitors
• Actionable information
• Continuous monitoring?
dross@HealthTechCapital.com

6. Blockbuster Potential
Drug?
• 47.5% - 5% weight loss (1 year)
mHealth?
• 36% - 5% weight loss (3 months)
Omada Health?
• Average weight loss = 6.4% (16 weeks)
• NIH Diabetes Prevention Program
dross@HealthTechCapital.com

7. HealthTech Opportunity
Improve Health
Control Costs
dross@HealthTechCapital.com

8. Building a Business?
Alignment of incentives
dross@HealthTechCapital.com

9. Continuum of Care
Acute Chronic @ Home Wellness
Terminal Acute Chronic At Risk Healthy
dross@HealthTechCapital.com

10. HealthTech = Market Risk
Consumers
Patients
Alternate User Adoption Risk
Care Users? Many?
Why Use? Often?
MDs Acquire? Cost?
Hospitals Business Model Risk
Who Pays? Why?
Prove Value?
Sustainable Barriers?
dross@HealthTechCapital.com

11. Hitting the Pay Wall
• 1 of 3 Americans – online for health
information
• Of which, 1 in 4 hit “pay wall”
2% paid
83% sought free alternate
13% gave up
Source: Pew Health Online 2013
dross@HealthTechCapital.com

12. Venture: Market vs. Product Risk?
VALUATION
TECH
HEALTHTECH ?
$1B
LIFE SCIENCE
Market
$ 100 M > $50 M
Payment
> $15 M
$ 10 M FDA
> $5 M
Trials
>$1M
Product
> $25K
1M
Seed Series A Series B Series C Series D Series E
dross@HealthTechCapital.com

13. HealthTech: New Investment Space
• High Market Risk
– Healthcare Ecosystem Expertise
• Complex Pain points and Workflows
• Regulatory, Multiple Stakeholders
– Unproven Market
• Revenue Model, User Adoption
• Low Technology Risk
– Quick Prototyping and Launch
– Capital Efficient: Few VC rounds
dross@HealthTechCapital.com

14. HealthTech Capital Ecosystem
Healthcare Technology
Consumer
dross@HealthTechCapital.com

15. HealthTech Capital Members
Investors
Service Venture
Physicians Industry

16. Collaborative Ecosystem
Seed $
Mentoring Validation
HealthTech Startup
Strategic Partner
dross@HealthTechCapital.com

17. HealthTech Examples
dross@HealthTechCapital.com

18. Thank you
Don Ross
HealthTech Capital
650.465.3173
dross@healthtechcapital.com
dross@HealthTechCapital.com