Everyone was talking about breaking down silos of data, making apps that really work, and reducing waste to save money.
The investor panel at CONVERGE explained which entrepreneurs working on those problems are most likely to get funded.
Steve Krein of Startup Health said the ability to listen and process feedback can make the difference between a success and a failure.
“One thing I always look for in an entreprenur is ‘Are they coachable? Have they created a team that is coachable?” he said.”
“We’re customers too. Entrepreneurs needs to understand what investors are looking for and what they’re strategies are.” #convergeconf
’ Gary Kurtzman, MD (@GKurtzman) July 10, 2012
Ted Driscoll of Claremont Creek Ventures said the composition of team is just as important.
“It always worries me when I get three biology PHDs pitch me,” he said. “You’ve got to have a complimentary team.”
Driscoll said his team also looks hard at intellectual property and market advantages.
“There needs to be a wall built around what you’re doing so people can’t just rip you off,” he said.
Different models and philosophies for how to support and invest #convergeconf but not clear what the endpoints should be.
’ Albert Shar (@alshar) July 10, 2012
There was a bit of a clash of philosophies at the investor panel at CONVERGE. Driscoll reports to long-term investors who want a regular return on their investments and has to take a dispassionate view of all the entrepreneurs he meets.
“I wish I worked for a charity so that I could invest based on clinical impact alone, but I don’t,” he said. “I see so many great ideas but no business model.”
Driscoll said Claremont Creek does about 5 health deals and five other deals per year.
Krein does not have the same ROI pressure that Driscoll does and his worldview reflects that.
“We have an opportunity here to bridge the very strict rules of making a few bets to making lots of them,” he said. “It’s not about which one, it’s about how do we get more companies ready for a meeting with Gary or Ted.
“We can’t turn these people away, we need to make sure we can get these ideas into the right place.”
Krein said that Startup Health talks to the big health insurance companies every day to figure out what they need to solve their problems. StartupHealth is tracking 1,200 companies in the health and wellness space, which gives them a great opportunity to play match maker. “Eighteen months ago a pharma company or a big insurance plan would say, ‘If we pilot something and it works, the startup won’t be big enough or sustainable enough to work at my compnay.’ That’s not true any more.
“Big companies are more interested in working with smaller and earlier companies to lower utilization costs or solve other problems.”
Dr. Gary Kurtzman of Safeguard Scientific moderated the panel and said that everyone’s business models need to change, including venture capitalists. “There is going to be an evolution in our business models too; how capital providers do business,” he said. “The venture community has not provided great returns.”
’ Brian S. McGowan PhD (@BrianSMcGowan) July 10, 2012
[Image from StartUpHealth twitter feed]