problem statement & Hypothesis
Problem Statement
The healthcare industry is plagued by inefficiencies, rising costs, and uneven access to quality care. Despite accounting for nearly 18% of the U.S. GDP and growing globally, the sector continues to struggle with:
Fragmented Delivery Systems: Care delivery is often siloed, leading to poor coordination, miscommunication, and delayed treatment, especially in complex cases.
Administrative Burdens: Providers spend an average of 16 hours per week on administrative tasks, detracting from patient care and contributing to burnout.
Rising Costs with Suboptimal Outcomes: Healthcare expenditures are growing faster than GDP in most countries, yet patient outcomes, particularly in the U.S., lag behind those in peer nations.
Inequitable Access: Millions still face barriers to essential healthcare due to geographic, financial, or systemic constraints, exacerbating health disparities.
Underutilized Technology: Despite significant advances in AI, data analytics, and remote care tools, adoption remains limited due to legacy systems, resistance to change, and regulatory hurdles.
Why Now?
The convergence of technological advances, regulatory support, and consumer demand creates an unprecedented opportunity to address these systemic issues. Startups leveraging emerging technologies to optimize workflows, improve patient engagement, and reduce costs are uniquely positioned to solve these long-standing challenges and redefine healthcare delivery for the better. This persistent gap between what healthcare is and what it could be forms the foundation of our investment focus.
Hypothesis
We hypothesize that startups leveraging emerging technologies—such as artificial intelligence, advanced analytics, and digital platforms—to address inefficiencies in healthcare delivery, reduce costs, and improve patient outcomes will achieve outsized growth and market leadership.
Specifically, we believe that companies operating in the following areas will drive transformative impact and generate significant value:
AI-Driven Clinical Tools: Enhancing diagnostics, treatment personalization, and operational workflows for providers and payers.
Next-Generation Therapeutics: Innovating in drug delivery, biologics, and precision medicine to tackle chronic and rare diseases.
Patient-Centric Platforms: Empowering consumers through tools for self-management, remote monitoring, and seamless access to care.
This hypothesis rests on the premise that shifting industry dynamics—driven by regulatory reforms, increasing demand for efficiency, and a growing emphasis on value-based care—create fertile ground for disruption. Startups meeting these demands with scalable, tech-enabled solutions will achieve product-market fit faster and sustain competitive advantages, making them ideal investment targets for our firm.
Download our investment thesis here.