Entries Written By Brad McCarty
We have a few mantras around AngelMD. One of those is “invest in what you know.” But recently we’ve also been focusing on the idea of “innovate where you are.” The theory is the same — you know more about the area in which you’re already working, so it makes sense to put your money or your work there.
Over the years, we’ve seen many instances where non-healthcare companies have used this same idea to break into the market. The latest of these comes from Lyft, an on-demand transportation company. Lyft is working toward building out a healthcare business unit that helps patients travel to non-emergency medical appointments. They company is focusing on its own wheelhouse, and then making key hires to help it transition into a new vertical.
Windpact is a great example of this idea. The company’s CEO is a former professional football player. He knew about the dangers of the sport, and he hired the right people to help build the solutions. Today Windpact is finding success outside of football, while still staying true to its roots, and even being recognized by the NFL.
The idea isn’t new, but it seems to come up more often these days. A few months ago, while we were at the Health:Further conference in Nashville, we heard these same suggestions. Dr. Suzanne Manzi, the Lead Investor for the AngelMD Syndicate for Neumentum, echoed the sentiment.
“I’ve seen promising companies, but sometimes they’re run by people who don’t have experience in the market that they’re trying to enter. They can have a great product, but the odds are stacked against them if they lack the background.”
That said, branching outside of your area of expertise isn’t forbidden territory. It’s a move that you have to handle in the right way. As Dr. Jack Lewin shared with us, it’s important to follow your passion, but it’s critical that what you’re following aligns with your experience. If that passion is too far removed, then find someone who can bridge the gap for your company. Otherwise you’ll be chasing problems that don’t exist.
Dr. Lewin’s example is HealthPals. Dr. Rajesh Dash started the company as little more than a lab with a single purpose. However, the market dictated that HealthPals could have a much larger impact than a single lab could provide. By partnering with the American College of Cardiology, HealthPals has been able to transform its business, while still holding true to its roots.
As the AngelMD network continues to grow, we see new companies join every day. There is nothing more motivating than watching a cardiologist, radiologist, or internist build a company that changes their field. Innovate in what you know, or connect with an expert in the AngelMD network. Are you next?
AngelMD is proud to announce its strategic alliance with The Rapacke Law Group. This alliance will help AngelMD members navigate the legal side of healthcare startups without the expense required to keep a lawyer on retainer. The Rapacke Law Group offers award-winning, price predictable legal counsel to AngelMD startups, physicians, and investors.
At AngelMD, we’re always excited when we find companies that can help to remove some of the heavy lifting required by startups, physicians, and investors on the network. The Rapacke Law Firm is offering a special set of benefits specifically to AngelMD members that will not only help them handle legal issues, but will also save them money in doing so.
- Free one-hour strategy session with an experienced attorney
- 20% off all legal services
- Free provisional patent application
- Up to $15k line of credit for one-year toward legal services
Patent, trademark, IP protection, business formation and M&A are areas of focus that every company and investor will encounter at some point on their journey. However, neither startups nor investors have the legal expertise to make sure that their interests are well protected. This strategic alliance with the Rapacke Law Group can help to cover these needs, while also offering legal counsel in many other areas.
For more information, or to get started, visit the AngelMD Service Partners page, and click on the Rapacke Law Group link.
We’re always proud to see the work of AngelMD companies turn into success. Windpact is a Virginia-based company with 13-year NFL veteran Shawn Springs at the helm. The company has recently been featured in the NFL’s Play Smart. Play Safe. initiative. Windpact’s Crash Cloud technology can be integrated into existing products to help make them safer. From sports, to automobiles, to military equipment, the Windpact team is making a hard-hitting world a safer place.
Over the past few years, the subject of value-based care has come to the forefront. Regardless of the complications surrounding accountable care organizations (ACOs), the Centers for Medicare and Medicaid Services believes strongly in value-based programs. Across the board, reports agree that a lack of education is directly correlated with lower patient satisfaction. Ikona is a New York-based company that provides research-backed solutions that have been clinically proven to decrease patient stress and increase patient satisfaction.
Ikona’s approach is backed by research. Via a randomized controlled study of over 120 patients, those who had a virtual reality experience prior to their surgeries went into the procedure feeling less stress, and emerged with greater satisfaction. The research was featured in the Annals of Surgery in June of 2017, and served as the foundation for building Ikona.
Ikona is presently working on an augmented reality application called Pill Planner. Pill Planner uses the patient’s smartphone camera and then overlays a guide on the screen showing the patient what pills need to be loaded into their pill box. This cuts down on the confusion that many patients feel when faced with, as in the case of transplants, a new regimen of medication that needs to be taken on time and consistently.
Ikona’s subscription model for its virtual reality content appears to be a strong offering. Its patient focus, can help calm pre-procedure nerves, it can assist in discharge planning, and even with pain management. The system is designed to scale to any size office, from a single provider all the way to a large healthcare conglomerate.
Stop by Ikona’s AngelMD profile, and make sure to follow the company to get updates as it moves forward. Not an AngelMD member yet? Don’t miss out. Sign up today to help shape the future of healthcare.
Each quarter, AngelMD Premium members receive a full report that details what’s been happening in the world of private healthcare investment. This preview of the AngelMD Private Healthcare Investment Report is being provided to all members.
The State of Healthcare Funding
Our Q3 report comes from AngelMD’s individual evaluation of over 500 SEC Form D filings. We have eliminated filings that were not directly involved with healthcare, filings from large, public companies, and filings related to private equity buyouts.
The overall number of investments dropped from Q2 to Q3. However, the total amount of money raised grew significantly, and individual investment sizes averaged over 50 percent higher than in the previous quarter. Leaders in the segment were bio/pharma, medical device, and healthcare IT.
The top targeted specialties by amount raised gives some interesting insight into Q3’s market shift. While Oncology is always a top performer, it was eclipsed in Q3 by General Medicine, Genetics, Immunotherapy, and others. Both General Medicine and Genetics look to finish the year ahead of Oncology for total amount of money raised, while Cardiology and Vascular Surgery both enjoy solid investment numbers for the year to date.
The Rise of Bio/Pharma
After a down segment in Q2, Bio/Pharma startups had a strong showing in Q3. Focuses ran the gamut from pain management to pathology, with drug discovery and biotechnology leading the charge. Across all Bio/Pharma startups, nearly $2 billion was raised, while the median investment size increased by $900,000.