Investment criteria
Investment Criteria
To align with our hypothesis and maximize returns, we evaluate potential investments against the following criteria:
Market Opportunity
Large and Growing TAM: The company should address a substantial Total Addressable Market (TAM) with a clear growth trajectory.
Urgent Need: The product or service must solve a critical problem in healthcare delivery or innovation, creating strong demand.
Sector Alignment: Focus on areas such as AI-driven healthcare tools, next-generation therapeutics, and patient-centric platforms.
Product and Innovation
Differentiated Solution: A defensible product offering that significantly outperforms existing solutions in terms of cost, outcomes, or efficiency.
Scalability: The product or service must be designed for growth, with potential for expansion across markets, geographies, or adjacent segments.
Regulatory Readiness: The solution should either comply with current healthcare regulations or have a clear path to achieving compliance.
Team and Leadership
Domain Expertise: Founders and key team members must demonstrate deep knowledge of healthcare and the specific challenges they are addressing.
Execution Capability: A proven track record of delivering results, supported by operational excellence and adaptability.
Visionary Leadership: A compelling vision for transforming healthcare, backed by strong communication and leadership skills.
Business Model and Traction
Sustainable Revenue Model: Clear pathways to monetization with evidence of early revenue or a strong plan to achieve it.
Customer Validation: Proof of demand through pilot programs, partnerships, or adoption by healthcare systems, payers, or patients.
Path to Profitability: A realistic plan for achieving profitability or strong unit economics, even at an early stage.
Competitive Edge
Proprietary Advantage: Whether through patents, unique data sets, or technological barriers, the company must demonstrate a clear moat.
Network Effects: Solutions that become more valuable as adoption increases, such as data platforms or patient/provider networks.
First-Mover Advantage: Evidence that the company is positioned to capture and maintain market share in an emerging sector.
Alignment with Firm Expertise
Healthcare Focus: The opportunity should align with our firm’s expertise in healthcare delivery, pharmaceuticals, and technology.
Value-Add Potential: The company should be open to and benefit from our strategic guidance, network, and operational support.
Exit Potential
Acquisition Landscape: Strong likelihood of interest from strategic acquirers such as large payers, pharma companies, or tech giants.
IPO Viability: A credible path to becoming a standalone public company in the long term.
Return Multiples: Potential for 10x returns on early-stage investments, supported by realistic market and revenue projections.
This framework ensures a rigorous, data-driven approach to identifying startups with the potential to redefine healthcare delivery and drive exceptional returns.
Download our investment thesis here.