Insights From LSI Europe ‘23: What Are Europe's Emerging VC Leaders Betting On?
The medtech market is an ever-changing landscape shaped by innovations, investments, and challenges. Industry leaders gathered at the LSI Europe '23 medtech conference to share their perspectives on current trends and future directions. The panel included experts from Philips Ventures, Nina Capital, Speedinvest, and Asabys Partners, providing a comprehensive view of the medtech investment landscape. Here’s a quick look into their insights.
Investment Focus and Strategies
Investment strategies in the medtech market are diverse, reflecting the varied nature of the industry itself. Beatriz Volckaert Almansa from Philips Ventures described their broad investment scope:
“We are mainly investing in medtech and digital health solutions in early stages across the globe and companies that are on strategy for our business units. We invest from consumer health-oriented products to connected care, patient diagnosis, enterprise informatics, and image-guided therapy.”
Austin Sawyer of Nina Capital echoed the importance of a diverse portfolio, highlighting their focus on early-stage health tech companies: “We invest in health tech in general, so in our portfolio, you'll see combinations of software and hardware and also more digital plays centered around data and computation.”
Defensibility and Unique Workflows in Digital Health
With the digital health sector booming, the ability to stand out through unique workflows and defensibility is critical. Sawyer emphasized the importance of understanding complex workflows in hospital systems:
“One of the things we looked at was how to approach urgent communication. We made a bet in that space because we were blown away by the founders' knowledge of how that information had to be digested through the hospital system. At first, you look at the pitch deck and think this is just another communication play, but when you dive deeper, you really see their vast knowledge of the space.”
Estelle Botbol from Speedinvest stressed the value of strategic data partnerships: “Having a company that sits on a goldmine of data that is partnering with a hospital from the start is something that we find exciting.”
Regional Differences in Medtech Innovations
Regional variations significantly impact the types of innovations and investment opportunities available in the medtech market. Maite Malet of Asabys Partners noted the differences between the US and Europe: “In the US, we are seeing a lot more efficiency tools for lowering costs, while in Europe, we see more solutions within the diagnosis and treatment space.”
Botbol added insights on regional specializations: “I’m looking mostly at France, the Netherlands, and Spain. France has been innovating a lot regarding hospital solutions, the Netherlands is quite famous for its biotech ecosystem, and Spain has seen significant advancements in life sciences tools.”
Challenges in Implementing Digital Health Solutions
Implementing digital health solutions in hospitals comes with its own set of challenges, including clinician adoption and IT integration. Botbol highlighted the issue of caregiver burnout: “There’s this issue of caregiver burnout. The population is aging, but the number of clinicians and caregivers getting admitted hasn’t changed much. AI solutions that can alleviate the administrative task burden by automating tasks like patient onboarding and discharge are super interesting.”
Sawyer pointed out the challenges with IT departments: “There’s almost more of a challenge convincing and educating the IT department and physicians. They don’t necessarily want point solutions.”
Supporting Portfolio Companies Amid Market Challenges
Venture capital firms are crucial in helping portfolio companies navigate market challenges, from extending cash runways to leveraging strategic networks. Malet discussed their proactive approach: “We’ve been pushing our portfolio companies to rethink their business models and extend their cash as much as possible.”
Sawyer added the importance of realistic expectations: “Keeping tabs on realistic sales cycles is very important, especially at the pre-seed stage. If you do that correctly and educate them, you can make their runways last longer and get the revenues that will help them in the next round.”
Digital Therapeutics: Opportunities and Challenges
Digital therapeutics hold significant promise but face hurdles in reimbursement and clinician adoption. Botbol explained the need for product stickiness and clinician engagement: “Founders need to focus on making the product sticky enough for patients and ensuring clinician adoption.”
Malet emphasized the need for education and smooth implementation: “The main issue now is being reimbursed and paid by the German health insurance. The practitioners are still the big bottleneck, not prescribing it enough. When it comes to implementing these new technologies, it all feeds back to the education component.”
Conclusion
The recording of the full discussion is viewable in LSI’s resource hub at the link below:
The panel discussions showcase the dynamic and complex nature of the medtech market. From diverse investment strategies and regional differences to implementation challenges and support for portfolio companies, these discussions highlighted the complexity and opportunities within the industry. As medical device investors and industry leaders continue to traverse this evolving landscape, collaboration and adaptability will be essential to driving future innovations and ensuring sustained success in the healthcare sector.
The full program for LSI Europe ‘24 is now live. Learn more about upcoming LSI events on our website and get in touch to present or attend today.
Read more data-driven insights
