Steven Miyao

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

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Harnessing Proprietary Information for Strategic Healthcare Investments Healthcare investments offer a unique combination of financial returns and the potential for significant social impact. For family offices and discerning investors, navigating this complex landscape requires more than just capital—it demands strategic insights fueled by proprietary information. The Foundation of Strategic Investment: Proprietary Information In the investment world, knowledge is power. This is particularly true in the healthcare sector, where regulatory landscapes, technological advancements, and policy changes can drastically impact the viability and potential of investment opportunities. Access to proprietary information gives investors a critical edge, enabling them to: - Anticipate Market Movements: With insights into healthcare policies and emerging trends, investors can position their portfolios to capitalize on upcoming shifts in the market. - Enhance Due Diligence: Tailored underwriting and due diligence tools grounded in exclusive data can highlight risks and reveal hidden potentials in investment prospects. - Maximize Value Creation: By understanding the intricacies of the US healthcare economy, investors can devise strategies for long-term value creation, rather than short-term gains. Empowering Family Offices Family offices often seek investments that offer both competitive financial returns and the opportunity to create a positive legacy. By refining investment platforms to address the specific needs of these entities, such as instant diversification and upside capture, they can achieve their financial and legacy-driven goals. These platforms can provide: - Market Insights: Curated intelligence that focuses on the most promising healthcare segments. - Educational Resources: In-depth content to deepen the understanding of healthcare technology trends and investment strategies. Building Relationships and Trust Investing is not just about the numbers; it's also about people. To attract and retain high-potential family office prospects, investment platforms must foster empathy and engagement. This involves: - Offering Exclusive Rights: Providing access to follow-on deals and direct investment opportunities with board or advisory roles. - Understanding Emotions: Addressing fears of missing out on prime opportunities due to geographical limitations and dissatisfaction with average investment options. - Creating Community: Facilitating a network of like-minded investors focused on collaborative, high-impact healthcare investments. Harnessing proprietary information is critical for making strategic healthcare investments that offer significant financial returns and contribute to the betterment of society. If you like to learn more about strategic healthcare investments or discuss your specific investment goals and how proprietary information can be leveraged to achieve them? Please feel free to reach out or leave a comment below.

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Anne Wojcicki, CEO of 23andMe, has announced plans to take the genetic testing company private. This strategic move aims to provide more flexibility in navigating regulatory challenges and to accelerate growth opportunities. The decision follows a trend of health tech companies seeking private ownership to focus on long-term objectives. Wojcicki highlighted the importance of this shift to maintain the company's commitment to innovation and customer-centric services. Taking 23andMe private reflects a bold step towards enhancing its position in the rapidly evolving genomics industry. Read more about this exciting development here: https://lnkd.in/gdrC3a64 #genomics #IPO #privatisation #23andMe

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What happened in mental health last week? ⏺ Anise Health raised $3 million to deliver culturally-responsive mental health care for the Asian American community ⏺ Goldman Sachs acquired autism therapy provider Center for Social Dynamics, a care provider to over 4,700 clients across 20 locations. ⏺ Lyra Health CEO David Ebersman announced that he will be stepping back from his role to care for his mental health. Ebersman will take on a new role as Board Chairman. ⏺ Substance use disorder (SUD) treatment provider BrightView is closing nine facilities in Massachusetts and Arizona citing challenging operating environments. ⏺ California introduced a bill that would require mental health warning labels on social media sites. It would be the first U.S. state to do so if the bill is passed. ⏺ The Australian Medical Association issued a position statement warning that chronic underfunding and increasingly complex patient presentations are pushing the mental health system to a crisis point. ⏺ Ukrainian startup Healthy Mind raised $1 million to launch an AI platform for mental health in the workplace. ⏺ Indian mental health platform GoodLives raised $129,000 in a pre-seed round, offering AI-driven self-directed exercises alongside expert-led therapy sessions. ⏺ We (The Hemingway Report) launched our 2024 founder survey. Link in comments to contribute. (All links below) __ If you liked this and want insights on the mental health industry in your inbox every week, subscribe to The Hemingway Report newsletter and follow me Steve Duke 📩 #MentalHealth #BehavioralHealth

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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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📈 Demand for fertility services is rising -> 💼 PE recognizes this and wants in -> 🏜 but opportunities are scarce (https://lnkd.in/g6zXEVZh). Highly recommend anyone who wants a deeper understanding of what's going with fertility and fertility tech read Aya Spencer's *2024 State of fertility tech report* (https://lnkd.in/gVjK_UpX) - it's a great summary

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Abby Levy talks about venture's role in US healthcare and what we can expect to see as technology impacts the space on TFR. Check out the rest of the conversation with Abby & Alan Patricof of Primetime Partners on Episode 433.

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🔥 Excited to announce my Masterclass on Burnout in the Workplace! Healthcare AI and Technology Investor Summit (Live/Virtual) Endeavor Venture Fund & Venture Studio Venture Funds and Foley & Lardner LLP 1200+ Registered  📅 Date: July 17th, 4 - 9 pm ET 📍 Location: In-person (Boston) and Virtual  🔗 Sign up now:  https://lu.ma/f1mt0ziq Keynote Speaker: Peter Durlach, Microsoft Chief Strategy Officer, Healthcare and Life Sciences  Closing Remarks: Jim Rogers, Board of Directors Mayo Collaborative Services, Chief Business Development Officer and Senior Administrator for Generative AI, Mayo Clinic  Summit Chairman: Dr. D. Martin Alexander Gershon, MD, JD, MPH, Managing Partner, Endeavor Venture Fund & Venture Studio Venture Funds, White House CancerX Moonshot Advisor 5:10 - 6:10 p.m. Breakout Sessions - Join me to explore practical and actionable insights and strategies to effectively tackle burnout in healthcare and beyond. 🌟 Burnout has reached pandemic levels across industries, with healthcare being the hardest hit. We are past the tipping point , with 50% of all healthcare professionals experiencing burnout and 22% wanting to leave the field.  - Published in the Journal of General Internal Medicine. This problem impacts not only healthcare workers and patients but also threatens the fundamental sustainability of our hospital system. According to a BDO survey, 71% of hospital CFOs cite physician and nursing departure from the workforce and consequent shortages as a top financial threat to hospitals. Learn how to mitigate this crisis and ensure sustainable workforce management. #leadership #healthcare #wellness #ai #Innovation #burnout #leadershipdevelopment #endeavorfunds #mg100 #thinkers50 #bestadvice #jennyfernandez

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Some VC investors believe that brick and mortar - referring to a physical presence of some kind - should be avoided at all costs. Yet, the track record of clinic and hybrid care businesses in health care indicates otherwise. ==> One Medical (sold for $3.9 billion to Amazon), Oak Street (bought by CVS for $10.6 billion), Lifestance (IPO at $7.5 billion market cap), and PE-backed Premise Health (acquired by OMERS Private Equity for $1.1 billion) If a clinic is indicated as the optimal way to deliver care for that patient population, there are creative ways to build and operate them. Full article below with advice and strategies on how to build and operate hybrid clinics from my teammate Anarghya Vardhana from Maveron, Amir Dan Rubin from OneMedical Group, Steven Eidelman from Modern Animal and more!

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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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Last week in San Diego, CEOs and VCs in the aging & longevity space got together to share their insights on anti-aging medicine. Here's a summary. 𝟰 𝗺𝗮𝗶𝗻 𝘁𝗼𝗽𝗶𝗰𝘀 𝘄𝗲𝗿𝗲 𝗰𝗼𝘃𝗲𝗿𝗲𝗱 -Types of outcomes investors want to see. -Changes in academic funding landscape -Regulatory landscape -Ethical considerations 𝗞𝗲𝘆 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀 Longevity is not about living longer. It's about increasing the number of years in which you are at your best and improving recovery from disease. Think of the resilience children have.  Aging is epigenetic. Changes in methylation patterns alter gene expression. This is not about telomeres or gene mutations anymore. First therapies to market may be AAV gene therapies. These therapies can restore methylation patterns to baseline and will focus on shared genes associated with aging and chronic disease. The 4 disease categories associated with aging are called the 4 horsemen. They are heart disease, diabetes, neurodegeneration, and cancer. Therapies addressing the above conditions represent a multi-trillion dollar market, and investors are looking to de-risk by putting money into clinical assets. Capital markets are slowly recovering with increase in IPOs and slight lowering of interest rates. CPI is still up and labor market is still in oversupply. Advise cautious optimism using the mantra "survive till 25'" Pre-clinical companies will have difficulty raising capital in this space. First-time CEOs should expect major challenges. NIH is putting more money into risky "moonshot" projects that encourage biotech partnerships, have commercialization plans, and can demonstrate path to market in 3-5 years. Projects are expected to have reasonable endpoints and broad applications. No more decades-long studies, and a slow move away from precision medicine. To increase accessibility and reduce cost, a larger specialized labor force is needed that can scale and administer gene therapies globally. The convergence of engineering an biology principles will be important for building a capable future workforce. ------------ Big thank you to LaunchBio for all of the non-profit work they do in providing meaningful updates on therapeutic fields, as well as bringing investors and startups together. Special thank you to Melissa Schmidt of LaunchBio for inviting me to attend this series. #biotechnology, #biotech  #startup  

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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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Boston is home to some of the world’s most groundbreaking health institutions and research hubs, driving innovation in medicine and healthcare for decades. Each of these organizations plays a crucial role in advancing health tech and shaping the future of medical science: Harvard Medical School – Leading the way in health sciences, Harvard Medical School is training the next generation of medical innovators through cutting-edge research. Massachusetts General Hospital (MGH) – Known for pioneering research and impactful clinical trials across various health tech areas, MGH continues to set standards in medical excellence. Brigham and Women's Hospital Women’s Hospital – Focused on translational medicine, BWH deeply engages in clinical research that bridges lab discoveries to patient care. Broad Institute of MIT and Harvard – This powerhouse in genomics and bioinformatics is advancing personalized medicine by conducting large-scale research in genetics and disease. Dana-Farber Cancer Institute – A global leader in cancer research, Dana-Farber is at the forefront of developing innovative oncology treatments that save lives. Boston Children's Hospital – Known for groundbreaking advancements in pediatric care, Boston Children's Hospital is a beacon of hope for young patients and their families. These institutions form the backbone of Boston's vibrant health tech ecosystem, collectively making strides toward a healthier, more innovative future. 🌐✨ #BostonHealthTech #InnovationEcosystem #MedicalResearch #PersonalizedMedicine #HealthcareInnovation #Innolytics

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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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Forget about flashy revenue projections or $100B market size, it’s all about the go to market strategy. Early stage healthcare investors need to understand how a company navigates the 0 to 1 phase of the commercialization journey. Otherwise, 0% of a $100B market...is still worth zero dollars. Here are some questions we at The Healthcare Syndicate like to ask founders: (h/t to Omar M. Khateeb for the excellent video on early market adopters) 1️⃣ Capturing 1% of the market? Why not 15%? Capturing 15% of the market, not just 1%, is critical for crossing the chasm from early adopters to the mainstream. Investors should evaluate the founder's ambition to capture a significant part of the market, and ask how they plan to get from early adopters --> mass market. 2️⃣ How will you [the founder] lead sales? In the early stages, emotional appeal and vision drive sales to market innovators. A corporate sales hire might scale later, but a founder’s passion resonates best with first movers. 3️⃣ Are you leveraging your early adopters properly? Innovators are essential for early traction, but they’re not the best advocates for the mainstream market. Startups must nurture innovators into credible key opinion leaders (KOLs) to gain mass-market acceptance. For more insights, check out the full article here: https://lnkd.in/gyfzfxjv #healthcareinnovation #venturecapital #angelinvesting

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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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#Longevity Tech is on the rise ✌️ -Endeavor BioMedicines raised $135M at a $795M valuation in April 2024. -Humanaut Health secured an $8.7M Seed round, valued at $52M in May. -Superpower raised $4M, reaching a $24M valuation in May as well. These are just 3 of the 90+ #longevity startups highlighted in Dealroom.co's latest report (Link in the comments). In this newsletter, I dive into the Longevity Technology Market and the emerging trends shaping the future of health! 👉 https://lnkd.in/e3EZrAPH #Longevity #HealthTech #StartupFunding #Innovation

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As I wrote earlier, Venture Builder is an attractive new tool for early-stage investment in deeptech startups. Investments in the Venture Company Initiate, which specializes in healthcare, attracted $45 million, a vivid example. If you are considering investing in healthcare startups and would like to learn more about investing in Venture Builder, please email me.

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