In fundraising, founder The biggest challenge is not selling any product or strategy. Rather, it is often addressing and correcting the investor’s bias.
The competition is not your market competitor or incumbent. Often, it’s the investor’s set of operating heuristics, many of which are quickly influenced by market conditions.
In healthcare, especially in a macro environment like the one we’re in, it’s an opportunity to identify and take control of the narrative. When markets start to decline, most companies focus on hanging on and surviving. In times like these, health tech companies are taking advantage of the frenzy to get on top of the crowded field and show the market why they are the betting horse.
Capture the macro view again
When the market looks like it’s going down, it’s an opportunity for founders to control the narrative and reshape how investors view market conditions based on in-depth analysis of the sector.
Compared to other industries, healthcare often remains resilient during economic downturns. When everything is going well, it’s easy to forget and appreciate the dynamism of the healthcare market as a whole. But a quick look at the Bureau of Labor Statistics shows that employment in the sector has been growing during the last recession.
If entrepreneurs and investors treat every interaction as a one-shot game, we’ll all eventually lose trust.
While work may not be the universal barometer for all healthcare activities, the need for real solutions to real pain points in healthcare remains constant. If you’re in services, position your business around this workforce need. If you are developing solutions for software, operations and RCM, take advantage of the growing gap between technology demand and adoption.
In this environment, funds look to cyclical markets to invest. This is your chance to capture this pool of capital.
Get the cereal
In a market full of “digital health” startups and “infrastructure solutions,” it’s important to differentiate yourself.
Go beyond generic labels that don’t pique the interest of healthcare investors, and instead describe your company’s growth from seed to IPO in three actions, even if you’re an early stage company:
