Devices & Diagnostics

What not to say to a VC when pitching your digital health sensor

If you sound like everyone else pitching a digital health sensor to a venture capitalist, you may be sabotaging your chances of getting funded. Avoid these 5 cliches.

By on January 09, 2013

Most venture capitalists have actually heard it all, but there are a few phrases that send up warning signals.
Michael Yang of Comcast Ventures said that he watches for herd thinking in pitches from entrepreneurs selling fitness sensors. If he hears any of these 5 ideas about product and distribution, he starts to question the overall strength of the idea. Yang spoke at the Fitness Tech Summit at the Consumer Electronic Show in Last Vegas Tuesday.
If any of these talking points sound familiar, replace them.

  1. “Our technology is the best on the market.” Don’t brag on your science unless you can back it up. “We have been extremely disappointed with the level of efficacy data, studies and white papers to substantiate the science behind these products. Consumers are going to rely on what our products say they are doing so we don’t want to get it wrong.”
    Yang said companies should do more ruthless rigorous research and be willing to expose it.
  2. “We’ll start at $100+ and bring down the price as we scale.” Yang said everyone is taking this approach and that this strategy shows that an entrepreneur ha snot have thought out pricing well enough.
  3. “The wrist is the best place on the body for this project.” Yang described this as the battleground for the wrist. Everyone picks that spot for a sensor, so consider a different spot or a device that clips onto clothing.
  4. “You can find us in retail stores and online.” If this is your plan, you better have an SEO expert on your staff. “This is great but its table stakes at this point,” he said.
    “Think through other forms of distribution to propel your sales.”
  5. “We’re targeting corporate wellness next.”
    Many startups are realizing that big companies are focusing on wellness and all their employees are potential customers.

    6. “Do you really think one of those corporate employees is going to tell their employees to wear those products?” he asked. “Also, the infrastructure needed on your part is very different for that kind of relationship than one selling through CVS or Target.”

    [Image of woman covering her mouth by bigstockphoto]