ORLANDO—During HIMSS24 Views from the Top session, “Digital health startups: Harnessing innovation to disrupt and improve care delivery,” experts relayed that strength in an executive team (not necessarily a product) and solutions that solve providers’ pain points are top of mind.
“There are a series of attributes we tend to weigh pretty heavily–the strength and relevance of the executive team is first and foremost,” said Michael Greeley, cofounder and general partner at Flare Capital Partners.
Still, Greeley said what is complicated now is the digital health financing and funding environment, which is historically bad, particularly following 2021’s enormous influx of capital into the sector.
“We’re now in this really awkward phase. We probably created way too many companies. Many of them have narrow offerings and are struggling to get traction in the market,” he said.
Still, investors look for companies that can scale quickly and take credit for cost reduction in the near term. …