Veteran VC Says Beware of Health IT Bubble: Not Enough ‘Actual Business Plans’
Timothy Hay from the Wall Street Journal wrote a great article after he interviewed me.
Ms. DeGheest has invested extensively in medical devices and in health-related information technology, and she said she learned in the ‘90s to read the signs of an economic bubble. She sees some of those signs today, telling Venture Capital Dispatch of a potential “Series B crunch” as a number of health entrepreneurs without solid business plans try to raise money from investors.
Anne DeGheest | 04 February 2014
HealthTech and Digital Health investment doubled in 2013 to over $2 Billion. However, over 73% went to seed and series A investments, with still a flat amount of deals funded by venture capitalists at the series B and C stages. Are we going to see a growing funding crunch for all these young companies or will we see increasing VC investments?
With new digital health accelerators opening doors weekly across the country, are we running the risk of another Dot Com like “Bubble”, when too many companies got started with poorly defined business models and an over exuberance of early seed capital that led to a terrible funding crash that killed most of them, including several very good ones?
Anne DeGheest | 02 February 2014
By Anne DeGheest
Please check my article on VentureBeat:
HealthTech Conference 2013 was bustling with energy with “an all-star lineup” of the leading minds in the healthcare industry. The sold-out event demystified the tectonic shifts in our healthcare system and identified specific actions that startup companies must take to be successful.
Big takeaway: The healthcare industry is being disrupted in a massive way, and 16% of GDP is being turned over, creating a tsunami of opportunities!
Overcoming challenges to build successful healthtech companies
The conference emphasized the need for collaboration between healthcare systems, payors, suppliers, entrepreneurs, and investors around emerging opportunities for healthcare innovations. Some of the key takeaways included:
Anne DeGheest | 23 November 2013