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StartUp Health NOW Podcast

Scaling Your Health Tech Business to $100 Million, Featuring Sofia Guerra of Bessemer Venture Partners

Jul 21, 2023
41:56

Podcast summary created with Snipd AI

Quick takeaways

  • Scaling a healthcare business to $100 million or beyond takes time and a solid understanding of the industry, with healthcare companies taking longer than traditional software businesses to reach this milestone.
  • Gross margins play a crucial role in the success of a healthcare business, with top performers in tech-enabled services reaching gross margins of 65% or higher.

Deep dives

Scaling a Healthcare Business to $100 Million

Scaling a healthcare business to $100 million or beyond takes time, patience, and a solid understanding of the industry. According to the benchmarks report by Bessemer Venture Partners, it takes healthcare companies three to four years longer than traditional cloud software businesses to reach $100 million in revenue. This is because the healthcare system requires more time and nuance due to its impact on people's lives and health. Scaling a healthcare business requires a repeatable and scalable model, focusing on gross profit rather than just revenue. Tech-enabled services businesses in healthcare have the advantage of a larger addressable market, enabling them to scale efficiently with higher growth rates. However, it is important to balance growth with efficiency and make the right investments that unlock revenue over time. Capital intensity is higher in tech-enabled services, but once scale is achieved, healthcare businesses can become more capital efficient and unlock next-level growth.

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