Jean-Paul (J.P.) Sanday

The (Healthcare) Ground Beneath Our Feet… This year it is likely that over $10 billion will be invested in the digital health sector – a robust amount, no doubt, but inconsequential when compared to the amount of capital tied up in healthcare real estate assets, which is estimated to be $1.2 trillion by Jones Lang Lasalle. Of that amount, approximately $790 billion is in the hospital sector while the remaining $490 billion is in medical office assets. It is estimated that there are 48.6k facilities with 3.4 billion square feet of healthcare real estate, 42% of which are owned by REITs and another 33% held by other private investment vehicles. Much of the digital health investment is meant to make the physical healthcare infrastructure more productive: greater operating efficiencies, greater patient throughput, more relevant personalized care models with better outcomes. As the healthcare system is being pushed to be more distributed to lower cost sites of care, accelerated now by the rapid proliferation of automation and AI capabilities, the potential impact on healthcare infrastructure assets will be profound. Thoughts on what that might look like... https://lnkd.in/eTfAdUbS #digitalhealth Flare Capital Partners

113

6 Comments

One of my proudest moments as an investor occurred today as Alaffia Health announced its series A because it shows how the Aperture® Venture Capital vision of multi-level, multi-generational #impactinvesting is succeeding in the marketplace. Here’s the model in its most basic form : ✅As diverse fund managers with meaningful capital to allocate, we are changing the VC landscape every day just by doing our day jobs. ✅As Black/Brown investors with ~40 years experience collectively, Aperture GPs have access to talent /excellence that others do not, so our portfolio *organically* is more inclusive by race, gender and geography even while optimizing for financial outcomes (all about the alpha). ✅Our most successful portco’s are using financial #innovation to solve market problems that impact underrepresented demographics and underserved communities. Alaffia Health is a shining example of the impact portion of our overall fund thesis, and we couldn’t be prouder of TJ Ademiluyi and Adun Akanni, MPH, PMP - the dynamic brother-sister founder duo whose vision we have steadfastly supported on their journey. Congratulations to TJ and Adun from William Crowder and myself, as well as the whole Aperture team- Marjorie King Philip McKenzie Yves Louis-Jacques Tanvi Lal Michelle Dhansinghani Lisha Bell Katie Kelly Amy Chung Cindy Chong, CFA Brian Fernandes-Halloran Monroe France Jayden Pantel Darren Herman Evan Wladis Neal Triplett Thomas Scriven Peter Ammon Irina Bit-Babik Tim Milanich Rob Rahbari

37

18 Comments

Excited to announce Frist Cressey Ventures' investment in Qualified Health and privileged to partner w/ SignalFire, Healthier Capital, Town Hall Ventures and others!   Healthcare costs are increasing at a faster rate than ever before, with the US spending nearly twice as other wealthy countries and still ranking bottom in outcomes. It's a story you've all heard - - US healthcare is known for astronomical inefficiencies, waste, workforce supply constraints, fragmented access, appalling patient experiences, and driving patients and businesses into debt.   Yes these problems present opportunities. But opportunities are limited to the system's appetite for change, desire and incentive to try something new and the innovation available. At FCV we believe we've hit the trifecta with Generative AI. Generative AI has given us truly transformational tools in the toolkit and the healthcare ecosystem is demanding to absorb its benefits. This perfect collision of supply and demand means healthcare is poised for big change.   Generative AI is everywhere, it's buzzy, it dangles hope and opportunity. But many things need to be true for the Gen AI transformation in healthcare to take hold, such as but not limited to:   💡 Patient lives and data need to remain safe: We believe in a highly regulated and human life-touching sector such as healthcare we must ensure Gen AI can drive to unrivalled savings and improvements in the quality of care WHILE not putting patient lives or data at risk.   💡 Systems need to own their utilization of Gen AI: We believe systems will use some hybrid of external partners and homegrown solutions but importantly will want full control of data provisioning and utilization as well as the ability to solve an unlimited number of nuanced issues and not cookie cutter algorithms.   💡 Costs need to be looked at on an enterprise level: We believe the speed of innovation in Gen AI means costs will continue decreasing dramatically but at an enterprise level this will still not be a small detail. Systems will want the ability to understand costs and delegate as needed for the outcomes desired at the organizational level.   Enter Qualified.   We knew when we met Justin Norden, MD, MBA, MPhil and team we were standing in front of changemakers. These individuals have lived and breathed the true application and implementation of Generative AI far before we were asking ChatGPT to write our emails. In fact, if you’ve ever driven in a Waymo you’ve benefited from past products this team has built.   Qualified Health is on a mission to enforce governance in Gen AI, allow systems to rapidly build for their needs, monitor and make decisions for all GenAI (homegrown and external) and accelerate the value the sector can glean from these new technologies.   Huge shout out to William T., Tommaso Auerbach and Jamie Kuntz for their hard work!

240

14 Comments

If you enjoyed our first blog on the metrics that matter for Verticalized SaaS then don't miss on the Part II of the series where my colleagues Devraj Hom Roy and Matt Schaar discuss the strategic and operational choices to improve these operational indicators. https://lnkd.in/g5QkCrcH

15

1 Comment

The healthcare landscape is rapidly evolving, driven by advancements in technology and a deeper understanding of patient care. I had the pleasure of speaking with Ambar Bhattacharyya, Co-Managing Partner at Maverick Ventures, on the latest episode of The Full Ratchet. Ambar has partnered with numerous billion-dollar companies like hims & hers, Cityblock Health, Devoted Health, and ConcertAI. His unique journey from rural America to becoming a prominent figure in venture capital offers invaluable insights into the future of healthcare and technology. We discuss his investment strategy at Maverick Ventures, the megatrends shaping healthcare, the impact of AI on the industry, and the importance of integrated care. Ambar also shares his thoughts on the challenges and opportunities in healthcare investment, offering a comprehensive view of what lies ahead. Check out TFR Episode 438 to catch our conversation. You'll be glad you listened. Link to the full episode is in the comment section below.

117

8 Comments

A new era of deep tech has emerged. First time funds will raise “unheard of” amounts of capital to fuel next gen deep tech startups - producing outsized, superior returns for LP’s compared to the rest. Prudent investors will act on this data and shift investment strategy as LP’s or risk being left behind savvy wealth managers and CIO’s / FO’s who saw this trend begin 4 years ago.

100

8 Comments

Exciting news! We just sent out the inaugural newsletter for Future Frontier Capital, our pre-seed venture fund backing frontier tech startups. As I hit "send," I realized how launching FFC parallels the path of the founders we support. Starting FFC has required the same passion, perseverance, and self-belief that drive entrepreneurs. Just like a startup, getting a VC fund off the ground demands relentless hustle—building the brand, perfecting the pitch, and networking tirelessly. There are constant challenges that test your resolve and endless hours of unglamorous work behind the scenes. And perhaps most daunting - the self-doubt, wondering if you're crazy for attempting something so bold. Pushing through that negative self-talk requires unshakable faith in your mission. Raising this VC fund reminds me of starting our IP strategy and patent analytics firm two decades ago. It’s a powerful reminder of the perseverance, creativity, and resilience needed to turn an ambitious idea into reality. This experience makes us more empathetic partners, ready to support the founders we back. Our work is just beginning, and this inaugural newsletter underscores our commitment to supporting frontier tech startups every step of the way. #startups #VentureCapital #EmergingManagers #Entrepreneurship #InnovationMindSet

21

2 Comments

Thrilled to announce the launch of our inaugural edition of Beyond Benchmarks at Emergence Capital. This comprehensive report dives deep into the metrics and trends shaping the early-stage enterprise cloud market. A huge thank you to our VC partners and contributors for making this possible! Here's a sneak peek of our findings: --> 60% of companies have already integrated GenAI into their service offerings, with another 20% planning to do so this year. --> While most companies use OpenAI as their primary LLM, many are experimenting with multiple models. We’re seeing a trend toward intelligently routing GenAI inference requests based on cost, performance, and security. --> Companies that have implemented GenAI are showing promising results, with a 7% higher NDR compared to those that haven’t. Beyond Benchmarks goes further with more GenAI trends, insights on the current fundraising environment, and key performance metrics. Our goal is to provide founders and their teams with valuable benchmarks to help them make better-informed decisions. At Emergence Capital, we're committed to helping founders build iconic companies. Dive into the full report here: https://lnkd.in/g6bnvAZM

84

4 Comments

Next one up, Flagler Health! In an attempt to demystify some of the non-obvious elements we found when we first met the founders of our fastest growing portfolio companies at 186 Ventures, here is the third edition of the "idiosyncratic phenomenon". This highlight will be on Albert Katz, Leon Anijar, and Will Hu and their journey building Flagler Health to bring unprecedented AI enabled patient care to the world of musculoskeletal (MsK) providers. As the healthcare industry shifts to a value based care paradigm, there will be increased pressure on the entire industry to ensure patient outcomes improve, all the while helping providers generate more revenue / become more cost efficient. Since we co-led their March, 2024 seed round with Streamlined, the company has rolled out some of their newest remote therapeutic and chronic condition management features to many patients and providers alike, experiencing high revenue growth in such a short period of time. The company continues to face unmet customer demand as it continues to scale its expansion into 2025. https://lnkd.in/exesTcmC

51

1 Comment

🎃 Ready to carve out your path to Product-Market Fit?🎃 Join Companyon Ventures’ Behind the Curtain roundtable tomorrow (Oct 30) with Michael Ho, Firas Raouf, Eric Morgan, and Hersh Tapadia as they 'exorcise' the mysteries of PMF. Don’t ghost us—RSVP in the comments 👻 https://lnkd.in/emCJcn4w #emergingmanager #venturecapital #productmarketfit

46

2 Comments

How should founders mitigate 2024's economic headwinds? "Behave like you're owned by PE" shares Jonathan Heiliger, General Partner Vertex Ventures US. As the macro-environment gets tougher, founders have to shift their operating mindsets to that of proving value and watching each operating move. #venturecapital #founders #entrepreneurship

8

As investments in health tech ventures start to gain momentum, STAT looks at five VCs behind some of the biggest recent deals. 💡 Simon Chong, Co-founder, Georgian - As one of three co-founders of Georgian, Chong helped lead the recent $100 million Series F investment in chronic care company Glooko. Over seven years, Glooko has expanded its endocrinology business and the number of insulin and glucose monitoring devices its software connects to. 💡 Seyonne Kang, Partner, StepStone Group - Private markets investment firm StepStone led womens’ health clinic Maven’s $125 million Series F round — Maven has so far raised about $425 million in total. 💡 Bryan Roberts, Partner, Venrock - Roberts was responsible for Venrock’s investment in AI-powered clinical note taker Suki, which recently raised a $70 million Series D. “AI will drastically change every industry, including health care, and the funding interest in Suki and the larger health tech market is a signal of the massive scale of change that is underway,” said Roberts. 💡 Julie Yoo, General partner at Andreessen Horowitz Bio+ Health - VC firm Andreessen Horowitz led the recent $31 million seed round for Alchemy — a tech company setting up pharmacies within federally qualified health centers and safety-net clinics — which also included NBA star and investor Magic Johnson. Yoo is focused on companies changing “how we access, pay for, and experience healthcare.” 💡 Nancy G. Brown, General partner at Oak HC/FT - The investment firm led digestive care company Oshi Health’s recent $60 million Series C round. Brown sourced the deal. She's focused on companies driving structural change in various ways. Read more about these investors and what exactly they're looking for: https://trib.al/EgPWz68 #healthtech #investment #venturecapital

28

Technical founders can develop into great leaders by having a strong sense of urgency. As BCV partner Kevin Zhang explains, modern engineering teams are used to organized sprints, so technical founders should treat other parts of the business with a similar timeline of “as soon as possible.” After all, time kills all deals. Read more in our head start guide for founders.

12

Insightful breakdown from my great Partner Omri Amirav-Drory on the simple factors that really separate the top 1% of investors from the rest, and how more operators should become investors! https://lnkd.in/gEiZdT2h

16

3 Comments

Hot take on a lot of early-stage digital health companies out there: You're not a tech company. Most tech-enabled care companies I've seen over the past two years are only tech-enabled in the sense that they use telehealth as their delivery mechanism for care. There are exceptions to this, of course - companies who build computer vision and applied AI tools to better the doctor-patient experience, companies who build tooling around risk scoring and stratification to enable more personalized medicine, companies who build truly novel intakes to better route patients to the appropriate care, etc. These companies have real technology chops and, if they sell it right to the market, can get credit for this from investors. But if you're truly a telehealth provider, you need to realize now that the goal post has shifted dramatically from 2021 and you're going to be valued at maturity at something like 3x EBITDA. That's profit. Not revenue. Throw a revenue multiple out the window. That's not the world we live in if you're a virtual doctor's office. Think of how that impacts venture math. If you're raising a seed round at $15M post-money (or $12M pre-money), it means you'll have to generate something like $150-200M in annual EBITDA to be a fund returner for your seed investors. Maybe even more with dilution, since telehealth businesses are not traditionally capital efficient and will likely need to raise material additional capital to reach that scale. You need to be ridiculously profitable (probably on $800M-$1B in annual revenue since you're likely going to be a 40% gross margin business). Here's the good news: you can set yourself up well (and probably be a contrarian founder relative to your peers), by talking about EBITDA growth and how you can grow into a fund-returning outcome based on realistic mature market comps. This will stand out for the investors you're pitching, even at the early stage. This is how you can beat the malaise of the tech-enabled care market. Focus on the right metrics and the right type of growth. You don't have to have all the answers (no founder does), but you need to make sure the ship is headed in the right direction. A focus on profitability for "tech-enabled care" (*ahem* telehealth) businesses is a good first step.

26

3 Comments

In our latest episode on the Practical Nerds podcast, Patric and I talk about our earned learnings on how founders (and other VCs) should choose the right (Co)Investors for their startup (Construction-tech or otherwise). Which of these do you agree with ? What did we miss ?

22

2 Comments

Today, GTMfund’s is excited to announce to launch of Operator, its first incubated company. Max Altschuler (founder of GTMfund) teamed up with co-founder Adam M. (design engineer and 0-1 builder) and co-founder Mark Kosoglow (Outreach employee #1 and former SVP of Global Sales) to create Operator.ai alongside an insanely talented team Pleasant Middelhof, Jeremy Jonas, Carl Gunderson. We've entered a period called “The Great Ignore”. Spam and irrelevant, poorly-automated outbound campaigns are running rampant.   Operator gives you an easy-to-use Growth Engineer that allows you to build and enrich lists with accurate data, and run experiments and queries using AI to generate highly targeted outreach.    Check out their website to get updates, early access, and see how they are taking the world back to 2 touches meant to attract buyers into conversations that convert, instead of 20 touches meant to make sure you hit your activity number: https://www.operator.ai/

31

1 Comment

🔋 #TodayinVC - All of the biggest deal announcements in venture capital - July 31th, 2024. Sourced from Litquidity's Exec Sum. 💰 Fundraising Announcements: - Fertility tracking app Flo Health Inc. raised a $200M Series C at a $1B+ valuation led by General Atlantic (TC) - Gradient AI, an AI solutions for insurance firms, raised a $56.1M Series C led by Centana Growth Partners (BW) - Type One Energy Group, a startup building a fusion reactor, raised a $53.5M seed extension led by Breakthrough Energy (TC) - Rhombus, a cloud-based physical security company, raised a $45M Series C led by NightDragon (PRN) - Faye, a travel insurance startup, raised a $31M Series B led by Portage (TC) - Axiad, an identity-first enabler of the zero-trust enterprise, raised a $25M round from Invictus Growth Partners (FN) - Perchwell, a modern data and workflow platform for residential real estate, raised a $25M Series B led by Lux Capital (FN) - Credo AI, an AI governance SaaS, raised $21M from CrimsoNox Capital, Mozilla Ventures, and FPV Ventures (BW) - intelmatix, an AI startup for MENA businesses, raised a $20M Series A led by Shorooq Partners (TC) - Lineaje Inc, a software supply chain security management platform, raised a $20M Series A led by Prosperity7 Ventures, Neotribe Ventures, and Hitachi Ventures (BW) - Carbon accounting software startup Tset raised a $13.9M Series A from Carbon Removal Partners, Brose Ventures, and Ingenics (EU) - Monto, an AI connector for ERP systems, raised a $9M seed round led by Scale Venture Partners (FN) - Powder, a startup providing AI agents for precise document analysis, raised a $5M seed round from Litquidity, YC, General Catalyst, and others (FN) - FranShares, a platform for users to invest in franchises, raised a $4.2M seed round led by Chicago Ventures (TC) Congrats to all - what #startups do you have your eyes on? 👀 Follow Today in VC for daily #venturecapital news! 📆

5

2 Comments

This week Mikal Ventures brings you a 4-week breakdown of the US capital market with an emphasis on the Mikal verticals. Over the 4-week period ending April 15, just over 900 new companies were added, with 94,109 companies included in the US Health Tech, Med Tech, Fin Tech, AI Tech, and Ed Tech verticals. AI Tech again saw the greatest percentage of growth in new companies and transactions, weighing in at over double the vertical averages for the period. The US Fin Tech vertical again led the way in SEC Filings and news articles. Mikal Ventures publishes these stats on a rolling 4-week basis to provide a perspective on how the verticals and new startups move through time. We hope you find them informative and thought-provoking. VC Investors are always adjusting their "Play Book" with a variety of options for investing. Mikal Ventures is one of those alternatives, offering curated solutions to real world problems. Reach out if you have questions on how we can be of assistance and bookmark https://mikalventures.com/ for additional insights and information.

3

3 Comments