The Resurgence of HealthCare IT and Emerging Tech Real Estate
This past month T3 Advisors attended the CEO Day at this year’s Health Innovation Summit in San Francisco. The event was hosted by key sponsors Rock Health, Physic Ventures, FutureMed, Unilever and several others.
Jennifer Aaker, a current Professor at Stanford Graduate School of Business and recent author of The Dragon Fly Effect, kicked off the day discussing how companies cultivate admiration through brands. We thought this was an invaluable discussion as we are continuously working with our clients on how to use their real estate to create a brand and culture for the company which ultimately enables them to recruit and retain the top talent.
One of the key panel discussions was around the funding mechanisms for digital health startups. The panel included the following people:
Rowan Chapman Partner at Mohr Davidow Ventures
Anne DeGheest Co-Founder & Managing Director, HealthTech Capital
Zina Moukheiber Contributing Editor, Forbes (moderator)
Jennifer Shieh Science and Technology Policy Fellow at the National Institutes of Health
Halle Tecco Co-Founder & CEO, Rock Health
Anne initiated the discussion by pointing out that “mobile health is going to change the world.” Her opinions were slightly different as to the venture climate given HealthTech’s continued commitment to early stage healthcare where as Rowan and Mohr Davidnow are slowly pulling away from early stage deals. The one common theme was that they all recalled entrepreneurs getting hung up on at the sound of “healthcare IT.” The tides have certainly turned as this seems like a logical route for many investors who have been skittish to invest in medical device companies due to FDA and reimbursement hurdles.
There were three components that the panel is looking for in their next healthcare IT start up:
- Healthcare expertise and knowledge around navigating the FDA and reimbursement issues.
- Technical background whether it be social, ecommerce, mobile, etc.
- How does your product engage the customer?
It was obvious that the panel was very bullish on the future of the healthcare sector. It has also been backed up by the funding activity in 2011. According to Mercom Capital’s recent Healthcare IT Report “Almost half a billion dollars came into the sector through venture capital investment compared to $211 million in 2010.”
The last panel of the afternoon was around the notion of Moneyball for Medicine and the health business model. The panel included the following:
Linda Avey Founder of 23andMe, Curious
Dave Chase Co-Founder & CEO, Avado (Moderator)
Ron Gutman Founder & CEO, HealthTap
Jennifer Wong Founder & CEO, Alt 12 Apps
Dave went into great lengths about how our ecosystem has historically had companies that are great providers of technology but have they really thought about using technology to their competitive advantage. He discussed that although most innovation in healthcare is around ways to maximize reimbursement codes or government incentives, the companies that are more likely to get funded are those that introduce truly disruptive innovation to care delivery. The panel included many business models in which technology has played a pivotal role. Linda Avery and her team at 23andMe have revolutionized genetic testing from the ease of your own home. HealthTap has created an interactive health network that is dedicated to improving the health of people around the world.
Has your healthcare IT company recently been funded? Are you looking for an environment to recruit and retain the best talent? T3 Advisors can help enable your company to think strategically around your next real estate move. Check out our Silicon Valley Emerging Tech and Life Science Handbooks!
Winning Real Estate and Facilities Strategies for Life Science and Emerging Tech Companies
