In a series of articles to promote INVEST 2025 in Chicago May 20-21, we are highlighting investment insights and perspectives. At the centerpiece of this boutique event for traditional and strategic healthcare investors, startups and collaboration partners such as hospitals and payers, is a pitch competition for health tech, medtech and biotech companies. In response to emailed questions, Kate Liebelt, Executive-In-Residence with the accelerator Springboard Enterprises, shared her insights on healthcare investment and how Springboard assesses startups.
What criteria do you use to select startups?
First and foremost, we assess the individual as someone who can benefit from our incredible network of advisers and become a contributor to our network. Springboard has been built on the shoulders of executives who understand the power of having a solid network. Other criteria we look at include:
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- Strong founder and team: We look for a passionate, capable team that combines technical expertise with industry knowledge.
- Market potential: We look for companies addressing significant unmet needs in a sector, with a clear understanding of their target market and path to scale.
- Differentiation: The startup should have a unique solution or technology, ideally with defensible IP, that sets them apart from competitors.
- Regulatory and clinical pathways: In healthcare, especially medtech and biotech, a clear regulatory strategy is critical. We assess their ability to navigate FDA approval or equivalent processes.
- Traction and validation: Early validation through partnerships, pilots, or initial sales helps demonstrate that their solution is market-ready. Our accelerator is designed to help companies scale, so we accept companies that are at late seed through Series B stages.
When early stage startups pitch, what are some of the mistakes they tend to make?
Every applicant we interview brings a high degree of passion and enthusiasm for their idea and the team and company they are building. We cannot overstate the importance of great storytelling – focus on telling your story as a founder, and the story of the problem you are trying to solve for. Other areas where we often spend quite a bit of time coaching startups include:
- Unclear business model: Presenting an unclear path to profitability or failing to adequately consider reimbursement challenges in healthcare.
- Lack of focus: Trying to solve too many problems at once instead of honing in on a specific pain point.
- Underestimating regulatory hurdles: Especially in health tech and medtech, failing to understand the time and resources needed for regulatory approval.
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What areas of health tech, medtech, and/or biotech are especially interesting to you?
Right now we are tremendously excited about digital health and women’s health and are so impressed with the amount of women-led companies emerging in these spaces. Our digital health and women’s health cohorts have gained the attention of quite a few founders, advisers, and corporate partners. We also are staying true to our core of supporting medical device, pharmaceutical and biotechnology companies.
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What are some startups that you think are doing particularly interesting things that you haven’t seen at other companies?
We are seeing incredible innovation from our founders who bring a wealth of expertise and experience from provider settings, technology corporations and academic research settings. All our companies have a female founder / co-founder and their perspectives on the complex health needs of women coupled with the unique responsibilities women hold in society, manifest in truly innovative solutions:
- Point-of-care diagnostics: Our founders are so creative when it comes to thinking about products and services that align seamlessly into a woman’s life.
- Caregiver Innovations: Services and products supporting caregivers managing care for chronically ill loved ones
What areas of healthcare are you shifting away from investing in and what areas are emerging interests?
We’re cautious about sectors where regulatory pathways are too uncertain, or the reimbursement landscape is unclear, such as some traditional diagnostic technologies. We are increasingly interested in mental health, especially innovations targeting underserved populations, and integrated healthcare platforms that connect care across specialties and service lines.
What emerging trends, if any, are you seeing with investors?
- Impact investment: There’s an increasing focus on investing in companies that not only deliver strong financial returns but also have a positive social or health impact.
- Value-based care: Investors are interested in startups that support the transition to value-based care models, improving outcomes while reducing costs.
What kind of advice do you give startups when developing pilots with a hospital partner?
- Clear objectives: Define the metrics of success for the pilot early on. Align with the hospital on these KPIs [Key Performance Indicators] and ensure the solution addresses their specific needs.
- Operational considerations: Understand the hospital’s IT infrastructure and workflow to ensure smooth integration. Simplicity is key.
- Build relationships: Developing champions within the hospital system — whether clinicians or administrators — is crucial for long-term success.
What are some of the things tech companies need to consider when deciding which hospitals to partner with?
- Alignment on innovation: Partner with hospitals that have a history of adopting new technologies or are part of innovation hubs.
- Demographic fit: Ensure the hospital’s patient population aligns with the problem you’re trying to solve.
- Support for scaling: Select partners that have the ability to scale a successful pilot across multiple departments or hospitals.
Even when pilots go well, what kind of problems can arise when a client decides to move ahead with implementation?
- Integration challenges: Even with a successful pilot, integrating into the hospital’s full ecosystem, including EHRs, can be more complex than anticipated.
- Budget constraints: Hospitals may have difficulty securing budget for full implementation, even if the pilot proves beneficial.
- Operational disruption: Large-scale implementation can disrupt hospital operations, which may create reluctance to proceed.
Do you think most healthcare startups understand the processes hospitals/payers use to implement new tech?
Most healthcare startups underestimate the length and complexity of hospital procurement and payer adoption processes. From legal reviews to ROI assessments, these processes can slow down adoption.
Where do you think tech companies/providers have improved in the implementation phase? How could they improve further?
- Improved collaboration: There’s more willingness among tech companies to work closely with hospitals to ensure smoother integration and to provide ongoing support post-pilot.
- Further improvements: Startups could improve by offering more flexible pricing models or integration solutions that don’t require heavy IT involvement.
What is some advice you would give to startups?
- Know your market: Startups need to demonstrate a deep understanding of the healthcare ecosystem, including regulatory, reimbursement, and provider/payer dynamics.
- Build strong relationships: Partnerships with key opinion leaders, clinicians, and patients are critical in building credibility and securing pilots or clinical trials.
And again, focus on your ability to tell a powerful story!
By focusing on deep understanding, alignment with the right partners, and continuous learning, healthcare startups can improve their chances of success in a complex ecosystem.
Photo: champpixs, Getty Images