What did the pandemic do to healthtech investing? | Marissa Bertorelli (Principal at Polaris Partners)
Apr 29, 2024
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Marissa Bertorelli from Polaris Partners discusses the impact of the pandemic on healthtech investing, the surge in AI in healthcare, challenges for early-stage healthtech startups, pitching to specialized investors, the need for cofounders, and differences in healthtech and SaaS founder experiences.
Healthtech investments surged post-pandemic, emphasizing growth in biotech and digital therapeutics.
AI's rising influence in healthcare poses challenges and opportunities for startups in the industry.
Deep dives
Rise in Digital Health Investment
The podcast discusses the significant increase in investment in the digital health space, from $8 billion in 2019 to $30 billion in 2021. This rise highlights the growing interest and financial support for healthcare businesses, including biotech, pharmaceuticals, and digital therapeutics.
Role of AI in Healthcare
The episode explores the increasing role of artificial intelligence (AI) in healthcare and its impact on startups. AI applications are on the rise, significantly influencing how healthcare services are provided. The discussion delves into the risks and benefits associated with integrating AI into healthcare practices.
Challenges Faced by Healthcare Founders
The conversation touches on the challenges healthcare founders encounter, such as the need to demonstrate both financial and clinical return on investment (ROI) to establish viable businesses. Healthcare founders face a unique double challenge in proving the effectiveness of their products or services.
Trends and Shifts in Healthcare Investing
The episode highlights the changing landscape of healthcare investing, with a focus on the pandemic's impact on healthcare services. It also addresses the shift towards investing in AI companies, the importance of varied expertise in health tech startups, and the significance of vision and traction for founders in the healthcare industry.
Even in turbulent times, early-stage investing has held up in one particular area: Healthcare. In fact: Biotech, pharmaceutical, and digital therapeutic startups are receiving more capital now than before the pandemic, in 2018 - 2019.
In this week’s episode of The Data Minute, join Peter Walker (Head of Insights at Carta) as he sits down with Marissa Bertorelli (Principal, Polaris Partners) for an illuminating conversation around trends they're seeing in early-stage healthcare investing.
In a wide-ranging discussion, they discuss how the pandemic changed investing in the sector, the transformative potential of AI in healthcare, the hurdles of early-stage healthtech startups, whether founders are wasting their time pitching "generalist funds," and much more.
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Chapters: 00:00 Intro 01:29 Marissa’s background and Polaris Partners 03:16 The pandemic’s impact on healthtech 06:12 Early 2024 trends 07:23 AI and the hurdles of early-stage healthtech companies 11:16 Investor specialization 12:57 Do healthtech founders waste time pitching generalist funds? 14:57 Is a cofounder needed? 18:10 Exit strategies and vision 21:32 Differences in the early-stage healthtech and SaSS founder experience 24:26 The Angel Investor community 25:40 Academia and entrepreneurship 29:00 Can you found a healthtech company without being a scientist? 32:42 Robots in healthtech? 33:51 Final thoughts