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[email protected] Don Ross HealthTech Capital January 15, 2013
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Page 1: Don Ross-Health 2.0 01.15.2013

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Don RossHealthTech Capital

January 15, 2013

Page 2: Don Ross-Health 2.0 01.15.2013

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Transforming HealthcareImprove Quality

Leverage Information Technology

Engage Consumers

Value-based Incentives

Reduce Demand

Page 3: Don Ross-Health 2.0 01.15.2013

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Big Themes

Behavior Change Telemedicine Quantified Self

Big Data Interoperability Aging in Place

Page 4: Don Ross-Health 2.0 01.15.2013

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Health Data Tsumani

Drug Research

Test Results

New Health Data Sources

Social Media

Claims

Patient Records Gene Sequencing

Home Monitoring Mobile apps

Page 5: Don Ross-Health 2.0 01.15.2013

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Actionable Data• 11 million use mobile enabled glucose

monitors• Actionable information • Continuous monitoring?

Page 6: Don Ross-Health 2.0 01.15.2013

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Blockbuster Potential

Drug?• 47.5% - 5% weight loss (1 year)

mHealth?• 36% - 5% weight loss (3 months)

Omada Health?• Average weight loss = 6.4% (16 weeks)• NIH Diabetes Prevention Program

Page 7: Don Ross-Health 2.0 01.15.2013

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HealthTech Opportunity

Improve Health

Control Costs

Page 8: Don Ross-Health 2.0 01.15.2013

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Building a Business?

Alignment of incentives

Page 9: Don Ross-Health 2.0 01.15.2013

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Continuum of Care

Chronic @ Home WellnessAcute

Terminal Acute Chronic At Risk Healthy

Page 10: Don Ross-Health 2.0 01.15.2013

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HealthTech = Market Risk

Hospitals

Patients

Consumers

MDs

AlternateCare

User Adoption RiskUsers? Many?Why Use? Often? Acquire? Cost?

Business Model RiskWho Pays? Why? Prove Value?Sustainable Barriers?

Page 11: Don Ross-Health 2.0 01.15.2013

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Hitting the Pay Wall• 1 of 3 Americans – online for health

information• Of which, 1 in 4 hit “pay wall”

2% paid83% sought free alternate13% gave up

Source: Pew Health Online 2013

Page 12: Don Ross-Health 2.0 01.15.2013

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HEALTHTECH ?

Market

FDA

Trials

Payment

Product

Venture: Market vs. Product Risk?

> $25K

> $ 1 M

> $5 M

> $15 M

> $50 M

Seed Series A Series B Series C Series D Series E

1 M

VALUATION

$ 10 M

$ 100 M

$ 1 BLIFE SCIENCE

TECH

Page 13: Don Ross-Health 2.0 01.15.2013

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HealthTech: New Investment Space

• High Market Risk– Healthcare Ecosystem Expertise

• Complex Pain points and Workflows• Regulatory, Multiple Stakeholders

– Unproven Market• Revenue Model, User Adoption

• Low Technology Risk– Quick Prototyping and Launch– Capital Efficient: Few VC rounds

Page 14: Don Ross-Health 2.0 01.15.2013

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HealthTech Capital Ecosystem

Technology

Consumer

Healthcare

Page 15: Don Ross-Health 2.0 01.15.2013

HealthTech Capital Members

Investors

Industry

Service

Physicians

Venture

Page 16: Don Ross-Health 2.0 01.15.2013

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Collaborative Ecosystem

HealthTech StartupSeed $

Mentoring Validation

Strategic Partner

Page 17: Don Ross-Health 2.0 01.15.2013

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HealthTech Examples

Page 18: Don Ross-Health 2.0 01.15.2013

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Thank you

Don RossHealthTech Capital

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