Preparing for a fund raise

Congrats on your upcoming fund raise!

This is an exciting time as you prepare your pitch to investors. Do you know what the VC firm Bessemer Venture Partners says about demonstrating value?

“We encourage portfolio companies to invest early in measuring clinical and financial ROI…clear proof of these metrics requires time and dollars invested, but will pay future dividends.” (link)

 

Another firm, GSR Ventures, reported that their survey of digital health investors revealed:

“ROI was deemed ‘important’ or ‘very important’ to the success of digital health companies by more than 94% of investor respondents.” (link) 

 

Perhaps more striking is that only 79% of respondents said the same when asked about clinical evidence and trials, suggesting that for the investors in this survey, ROI was more important than clinical evidence!

Clearly, demonstrating value is important to investors, but there are a few things to keep in mind. In the Bessemer Venture Partners article, the authors say:

“[ROI]…require[s] a clear articulation of why such value should be attributed to your product or service…”

 

Other sources have similar advice:

“[The value prop] should be explicitly tied to available, credible evidence…” – Deloitte and AdvaMed’s Framework for Comprehensive Assessment of Medical Technologies

 

So, how can we best prepare?

You will need to convince investors with credible and compelling evidence of financial ROI, and you will also need to address value more generally, including the impact of potential barriers to acceptance and adoption in real-world practice.

In addition to the articles and resources available on this site, below are a few options for what might help get you started:

 

Finally, we offer a free introductory call to talk about your unique situation. You can request a call by clicking the button below. Whatever you do, we may be able to help, even if it is just to point you toward other resources that you need! 

 

Below is a free readiness assessment where you’ll get a custom score and some suggested next steps: