Devices & Diagnostics, Health IT, Startups

What should be a healthcare startup’s prize for good work? [Hint: It’s not necessarily money]

If you were to ask most early-stage companies what they’d consider to be a decent […]

If you were to ask most early-stage companies what they’d consider to be a decent prize from a group of investors for a well pitched device or service, they’d probably say money. But at an entrepreneur forum at Penn Medicine, the rewards were as varied as the groups offering them. Venture capitalists, angel investors, accelerators and incubators each offered a different take on what a reward should look like.

Philadelphia has been working to build a better entrepreneur ecosystem to grow companies and stimulate job growth. As part of that trend, institutions are looking for ways to get more investors involved.

Here are some of the prizes offered at the forum and a review of the advantages of each one.

Pitching to a more specialized audience: Angel investor network Robin Hood Ventures picked EasyCopay, a service to streamline pharmacy co-payments. Its CEO Fred Hawkins will pitch at its next partner meeting.

Advantages: It’s not easy to get an audience with angel groups. They receive loads of queries and whittle them down to a select few who are lucky enough to get in the door. But with this prize, not only do you get an audience with several investors, you have an influential champion as well.

Advisory services: SR One, GSK’s venture capital arm, picked CytoVas, a life science company specializing in advanced tests for cardiovascular disease. Safeguard Scientifics (NYSE: SFE) picked Take Command Health, a mobile health platform to help guide users’ health insurance options.

Advantages:  This offers a taste of what you might get as a portfolio company, which is really useful for an early- or growth-stage company. It could help you make up your mind what working with a venture investor would be like without actually having to give up any control of your business. It offers a chance to glean insights from their investment approach and priorities. It could also provide some useful tools and veteran insights to strengthen your business, not to mention a deeper dive on the market realities your business is facing. Most of all, it establishes some valuable connections that will help when your business is more mature.

Introductions: First Round Capital picked AirCare, a DreamIt Health alum led by George Zeng. It developed a mobile health platform to offer better post-acute care and reduce readmissions. First Round also chose Dosed, a diabetes management app developed by its founder Daniel Fine. In addition to introductions, the venture firm is also giving the healthcare startups feedback, and business strategy development advice.

Advantages: The amount of influence and resources a national venture firm has access to are considerable. Having a chance to get your business in front of the right person could make all the difference. Getting feedback from them not only gives you insight into their investment culture but it could also lead to a shift in your business model that could make a vital difference in its future.

Accelerated consideration: The Digital Health Accelerator at the Science Center added telepsychology startup 1DocWay led by CEO and co-founder Samir Malik to the list of companies it’s considering for its program, which includes free space, consulting services and $50,000.

Advantages: Who doesn’t like to jump to the head of the line? And an accelerator offers certain advantages including that funding that startups like so much. In this case, it even comes without the equity investment.

Free space: Venturef0rth offered three months of free space in its shared workspace to Bansen Labs. It produced a way to integrate some prototypes of gaming devices for physically disabled gamers.

Advantages: You can put a price on free space in a city so it’s obviously a huge advantage for most lean startups who are trying to keep costs down. It also gives you an address beyond your apartment or university’s facilities and makes you better positioned to exchange insights with other entrepreneurs and potential mentors and opens the way for potential collaboration.

[Photo credit: Five gold stars from BigStock Photo]

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