Mohamad Abdallah

Considering a career in startups or VC? Starting today, I'm available for 1:1 calls on @Intro to help startup founders and aspiring VCs think through the path ahead. As the founder + managing director of Red Sea Ventures, we invested early in companies like Allbirds (IPO), Sweetgreen (IPO), Nest (acq. Google), Casetext (acq. Thompson Reuters), and Prose to name a few. What topics can we cover? ✔️ Finding product-market fit ✔️ The different paths to funding ✔️ Determining how much you need to raise ✔️ Building a VC firm ✔️ Careers in VC ✔️ Celebrity partnerships Honored to be alongside world-class Experts like Chris DeWolfe (co-founder of MySpace (sold for $675M), Scott Saunders (founder of Happy Money, valued $1B+) & Geraldine Martin-Coppola (former President of Goop). I’ll be donating 100% of the proceeds to Seeds of Peace

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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.

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Integrating multiple organizations after a merger is a complex affair. On the blog, ECG Management Consultants’ Asif Shah Mohammed and Sean Hartzell share 10 tips for making it work. #ECGMC #marketconsolidation #healthcaremergers https://lnkd.in/dwzjHFBZ

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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

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Dawn Media Group OpEd: In my piece 'Strategic Reset of Pakistan's Healthcare,' I propose that the recent $7B IMF agreement presents a historic opportunity to transform our healthcare system and restore public confidence. The timing is ideal: inflation has cooled to 4.9%, foreign reserves have strengthened to $16.4B, and pilot programs in digital health are already demonstrating 15-20% cost savings. These conditions create a unique window for meaningful healthcare reform. https://lnkd.in/dBzfeiRa Government of Pakistan Ahsan Iqbal Chaudhary Shandana Gulzar Khan Tariq Malik Shaza Khawaja Embassy of Pakistan Riyadh, KSA Pakistan Republic Ali Sarfraz Hussain Kashif NazirMiftah Ismail Verified Pakistan Startup Pakistan Sustainable Development Policy Institute (SDPI)UNDP Pakistan UNICEF Pakistan UNDPUNICEF Ministry of Federal Education and Professional Training Ministry of IT and Telecom Pakistan Ministry of Foreign Affairs, Government of Pakistan Ministry of Planning Development and Special Initiatives Ministry of National Health Services, Regulations and Coordination Public Private Partnership Authority

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We founded Oak HC/FT to invest in diversified market opportunities and built a team that would get to know those subject areas broadly and deeply. To succeed in #healthcare specifically, we have a few key focuses: 1. High-quality patient care is our number one priority. We're looking to build companies that provide better access and services at a lower cost. 2. We look for opportunities to streamline processes. We want to build administrative efficiency to reduce waste and free up resources that can positively impact patients. 3. Talent is everything. It's a key ingredient in scaling, which requires human capital and a great deal of support that we're eager to provide. Want to hear more? I dove deeper into these insights with RJ Lumba on the GrowthCap Growth Investor podcast. Listen to our full conversation here: https://lnkd.in/eiCbqDSU

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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!

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A new flood of fresh funds is reshaping the venture capital landscape! 🚀 Recent highlights include TVM Capital Healthcare’s $250M Afiyah Fund LP, SVC's $30M investment into General Atlantic’s private equity fund, Golden Gate Ventures' $100M MENA-focused fund launch, and Investcorp's $570M fund closure. These announcements signal a broader trend of escalating financial commitments within the industry. MEA funds are heating up! 🌡️ Our data reveals a 74% YoY increase in the number of MEA-based funds being financed as of May 20th, 2024. Since Q4’23, there has been a notable surge in regional funds securing capital, with international investors also establishing localized funds. Stay informed with the latest trends in VC activity: https://lnkd.in/dP6ZkmCd By MAGNiTT Repost by : Salem Bagami Chief Executive Officer Digital Transformation Company & Managing Director 2080 Ventures Email: [email protected] Website: www.2080.ventures #VC #Funds #Investing

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I recently spoke with an executive from one of the largest healthcare companies in the country.   When I asked them what are the highest priority problems they're concentrating on right now, unsurprisingly, 1️⃣ controlling costs around GLP1s came up first. But surprisingly, 2️⃣ the intersection of health and climate change came up second! It is clear that more healthcare leaders are beginning to think about (and respond to!) the deep interdependence of human and environmental health.   🗣 While my climate friends have long emphasized that "climate is a horizontal," and "there's no such thing as a climate company; all companies will have to adapt to climate change", I'm energized to hear more of these conversations beginning in healthcare.   😷 We already know that wildfires and air pollution are driving increases in respiratory and chronic illnesses, that heat waves and natural disasters are putting more lives at risk, and that rising temperatures and shifting rainfall patterns are enabling the spread of infectious diseases.   As we invest in downstream solutions that support patients suffering from respiratory diseases, cardiovascular diseases, anxiety, depression, and general gaps in gaps in health equity, we're also thinking about holistic, upstream factors, like the effects of climate change.   ⚕ 🤝 🌎 How should we evolve our traditional notions of preventive health to address these emerging challenges? ⚕ 🤝 🌎 How can health-first organizations play their part when it comes to the climate crisis? ⚕ 🤝 🌎 What are the innovative ideas you've seen around climate, sustainability, and human health?  💡 This is both a personal area of interest and something I'm hoping we get to explore more at Inflect! If this is something you've also been reflecting on and learning about, always happy to connect and trade notes!

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Nearly half (if not more) of YC's F24 healthcare startups are building AI agent tools for doctors. Using agents to answer phones, write notes, prescreen patient intakes, etc. Sounds great right? Well, not exactly. That's because what YC and other investors are getting wrong about this generation of physicians versus those of the past (who did nothing to stop consolidation or electronic health records), is that they aren't just going to sit around and wait for someone else to build something for them anymore. They're builders who want to solve their own problems, and they're willing and eager to learn. Just look at telemedicine adoption data vs AI to explain what I mean: - Prior to COVID telemedicine was a <19% - During COVID it grew to > 90% - Post COVID it went back down to <40% But AI? - In Jan 24 it was 38% - Latest survey in Oct shows it >68% - By this time next year it should be near 100% This is the fastest adoption of any tech in healthcare in history, and it's only the beginning. Every day, new models, new features, and new tools are created for non-developers to build software using AI. What makes people believe that doctors can't or won't figure out how to use zero shot/few shot prompting in environments like cursor or claude just like everyone else? So if your bet is that AI doctors will make the same purchase decisions as their non-AI counterparts of the past, you're most likely making the wrong bet. This generation of doctor are builders. #HealthcareOnLinkedIn #AIagentsForDoctors

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The blog post delves into the realm of healthcare entrepreneurship, exploring the intricacies of exit strategies for innovators within the healthcare industry. Authored by Hamza Asumah, MD, MBA, the narrative navigates through the indispensable considerations and decisions that healthcare entrepreneurs encounter as they contemplate exiting their ventures. With a keen focus on maximizing financial returns, sustaining business impact, and aligning strategic objectives with personal goals, the blog offers a comprehensive assessment of various exit strategies available to healthcare entrepreneurs. From mergers and acquisitions (M&A) to initial public offerings (IPO) and selling to larger healthcare entities, the discourse articulates key considerations, market dynamics, regulatory compliance, and preparatory steps crucial for a successful transition. With an emphasis on proactive preparation, strategic decision-making, and professional guidance, the blog equips healthcare entrepreneurs with valuable insights to navigate the complex landscape of exits in the healthcare sector. https://lnkd.in/gEjYq8tK

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Interesting report from PitchBook on first quarter Digital Health VC activity. - $1.1 billion in funding. Key late-stage deals were led by Transcarent ($126M) and Rightway ($108.8M). - The top investment categories were general & primary care ($213.4M) and health benefits navigation ($140.7M). Challenges & Trends: Valuations: Less than 20% of startups reported a priced round in the last 18 months, with an increase in extension/bridge rounds. Digital Therapeutics: Facing significant challenges due to elusive reimbursement and cautious investors. Better Therapeutics is winding down operations, and Akili is being taken private for $34M, a sharp decline from its peak valuation of nearly $450M. Telehealth: Setbacks include the shutdown of Optum's virtual care and Walmart's telehealth services. The pandemic saw over $15B in VC funding since 2020, but some platforms struggled with unsustainable business models and strategic missteps (e.g., Teladoc's costly Livongo acquisition and Amwell's delisting from Nasdaq). Looking Ahead: While digital therapeutics and telehealth face hurdles, there's potential in: Platforms integrating various treatments for conditions like diabetes, metabolic health, and mental health. Specialty telemedicine, B2B platforms, and hybrid-care models, which offer a promising investment outlook. Despite current challenges, strategic investments and a focus on sustainable models can drive the next wave of innovation in digital health. As a former digital health founder, I encourage founders in this space to keep going...there is light at the end of the tunnel! If you are a digital health founder with impressive traction based in Virginia, feel free to reach out! #digitalhealth #venturecapital #virginiaipc #virginiainvests

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Here is the data behind how early employees can be exploited by venture-scale startups. The chance of a startup having a great exit is small. The chance of a startup's founders having a life-changing exit is smaller. The chance of a startup's earliest employees having a life-changing exit far far smaller. To my friends and colleagues: please don't put up with an abusive work environments because of some extremely unlikely future outcome. Peter lists examples of good reasons to take the risk of working for a startup.

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💡Benchmarks in the investment industry serve as a standard for measuring the performance of securities, mutual funds, or investment managers. They provide a reference point for analyzing allocation, risk, and return of a portfolio, enabling investors to make informed decisions. Thanks Peter Walker for keeping us all informed!! Can’t wait for this!! Follow and get on the waitlist for this one! #benchmarks #fundraising #Capitalraise #founders #womenshealth #femhealth #medtech #wellness

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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 December 9, just under 590 new companies were added, resulting in 101,195 companies included in the US Health Tech, Med Tech, Fin Tech, AI Tech, and Ed Tech verticals. We continue to see a slowdown in overall activity in all verticals. US AI Tech again saw the greatest percentage growth in new companies at 12%, vs. the vertical average of 6% for the period. AI Tech also led the group in transactions and news articles. US Med Tech led in SEC Filings. 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.

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So great to speak to Mohammed Islam on The Mo Show podcast last week! Watch the full episode here!

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🚀 𝐔𝐧𝐥𝐨𝐜𝐤 𝐒𝐭𝐚𝐫𝐭𝐮𝐩 𝐒𝐮𝐜𝐜𝐞𝐬𝐬 𝐰𝐢𝐭𝐡 𝐔𝐫𝐢 𝐋𝐞𝐯𝐢𝐧𝐞’𝐬 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬! 🚀 Uri Levine, co-founder of Waze and Moovit, shares invaluable lessons in his book “𝘍𝘢𝘭𝘭 𝘪𝘯 𝘓𝘰𝘷𝘦 𝘸𝘪𝘵𝘩 𝘵𝘩𝘦 𝘗𝘳𝘰𝘣𝘭𝘦𝘮, 𝘕𝘰𝘵 𝘵𝘩𝘦 𝘚𝘰𝘭𝘶𝘵𝘪𝘰𝘯.” Key takeaways include the importance of passionately embracing the problem you’re solving, the necessity of customer retention as a marker of product-market fit, and the strategic use of pitch deck slides. He also emphasises the significance of hiring and firing correctly and observing user behaviour to refine your product. These principles can transform your startup journey, ensuring resilience and growth. 🌟 #StartupSuccess #Entrepreneurship #ProductMarketFit #Innovation

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I’m optimistic about the potential of generative AI to reduce provider burnout and improve provider-patient interactions. However, that optimism is tempered by the data that indicates the technology is not quite ready yet. Bright Ventures is interested in digital health founders who understand the realities of provider-patient interactions, and the role technology can play in strengthening clinical outcomes. Which founders and teams are getting this right? Tag them in the comments below.

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Last but not least at Becker's Healthcare CEO/CFO conference - terrific panel led by my ECG Management Consultants colleague Steve McMillen, including Andrew Chang from UChicago Medicine, Patrick Cockey from Jefferson Health, and Maura Buxton from CVS Health. Topic: The Digital Patient Experience. Fascinating discussion in which the panelists agreed on many things, but productively disagreed on some topics. These are my favorite panel discussions, where constructive disagreement fosters truly engaging dialogue. Some of my takeaways (not attributed to any individual member of the panel): (1) The term "digital front door" can imply that we want everyone to begin their journey with us on a device or through an app; we really should be talking about making every channel accessible and seamless. (2) Improving patient experience is necessary but not sufficient; any solution should also simplify provider workflow. (3) We have a lot to learn from our existing patients and consumers, but also much to learn from those who choose NOT to engage with us digitally. #patientexperience #leadership #healthcare

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