5 tips for healthcare startups fundraising in a down market

News Summary

  • More often, it is the investor’s set of operating heuristics, many of which are quickly influenced by market conditions.Fundraising in healthcare, especially in a macro environment like the one we’re in, is an opportunity to differentiate and take control of the narrative.
  • While employment may not be a comprehensive barometer for all healthcare activity, the demand for real solutions to real pain points in healthcare will continue to be inelastic.
  • If you’re in services, frame your business around this labor demand; if you’re developing solutions for software, operations and RCM, leverage this growing gap between the need and the adoption of technology.In this environment, funds will be looking for acyclical markets to invest in.
  • When everything is going well, it’s easy to forget and even easier to underappreciate the acyclicality of the healthcare market as a whole.
  • But a quick look at data from the Bureau of Labor shows that employment in the sector continued to grow during the last recession, a testament to how robust the sector is.
  • Instead, it is often unwinding and re-aligning the investor’s biases.The competition is not your market competitor or incumbent.
In fundraising, a founders greatest challenge is not selling any particular product or strategy. Instead, it is often unwinding and realigning the investors biases.The competition is not your mark [+2214 chars]