Latest / StartUp Health NOW Podcast / New VC Funds Put Women’s Health Moonshot Front and Center

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New VC Funds Put Women’s Health Moonshot Front and Center · StartUp Health NOW Podcast

• 0:00
  [on-hold music] And even if you're not the person in the company that managed the financial models, you need to know how to explain it if you're the one that's pitching.
• 0:19
  So if I ask, you know, what ARR, what your LTV is, what your CAC is, you, whoever's giving the presentation, no matter what your role is, you need to be able to answer those questions.
• 0:29
  [upbeat music] Welcome to Startup Health Now, the podcast where we talk with the entrepreneurs building the future of health and discuss the health moonshots they're working to achieve. I'm your host, Logan Plaster.
• 0:47
  In today's venture capital world, the vast majority of decisions are made by men. By one recent estimate, 87% of partners at digital health venture funds were men.
• 0:59
  This imbalance has resulted in an overall lack of investment in women's health innovations and in female founders. That's shifting, thanks in part to investors like Maria Velasaris, our guest on this week's episode.
• 1:12
  Maria was a successful entrepreneur and business development maven before she became a managing partner at SteelSky Ventures.
• 1:19
  SteelSky is a VC firm with a laser focus on women's health and a desire to see women-run startups get the funding they deserve.
• 1:27
  Today's conversation has been pulled from an expert office hour held by Startup Health and attended by entrepreneurs from the Startup Health portfolio.
• 1:35
  So in addition to Maria's insights on investment trends, how, how to pitch, how COVID has changed the game, you'll get to hear real-life questions from founders who are working in the trenches.
• 1:46
  The session was moderated by Katia Hancock, Startup Health's Investor Network Director. So with that, I'll hand it over to Katia. Enjoy.
• 1:53
  [upbeat music] Well, thank you for the, for the intro, and, um, very excited to see everyone today and to welcome Maria Velasaris from SteelSky Ventures.
• 2:11
  Um, Maria is, um, an awesome investor, um, with a, a managing partner, a managing founder of SteelSky, which is a really unique, um, kind of modern take on, on investing, and we'll let Maria talk about kind of how she sees the world.
• 2:30
  Um, but you know, they're really very, very well aligned with our women's health moonshot.
• 2:36
  Um, SteelSky is exclusively focused in women's health, um, opportunities, and we can talk about that, um, as well as, you know, she's got a great background as both an operator and an investor, so has a lot of insights to share across fundraising in general, not just around women's health.
• 2:56
  Um, so as always, please put your questions in the chat. Um, and Maria, why don't you kick off and give a little background on yourself.
• 3:03
  Um, you have a lot of different experiences that kind of lend themselves to your unique perspective in investing.
• 3:10
  Um, so if you can talk about your background personally and then a little bit about SteelSky, um, and your focus to kick us off. Okay, sounds good. Thank you so much, Katia, and it's nice to meet everyone today.
• 3:22
  Thank you for your time. So, um, my story starts, um, as an entrepreneur. So much like, uh, a lot of you, I'm a, a serial entrepreneur. Started my first business in undergrad.
• 3:34
  Um, it was an online shipping and storage company that I started with a friend from Duke, and we just expanded, um, you know, to our school, seven schools, 50 schools, and then became the largest in the nation.
• 3:45
  And, you know, U-Haul ended up acquiring that company. And so that was my first foray in entrepreneurship. Like, we knocked it out of the park. Um, it was great. It was easy to raise money.
• 3:54
  And so I just thought, you know, this is, this is what entrepreneurship is. But, uh, what I did realize is that there were a lot of gaps I had to fill still.
• 4:03
  And so I looked at the next trajectory of, like, the next 15 to 18 years of my career at just going through and picking up the necessary skills so that I would understand everything I would have to learn to run a business.
• 4:14
  So my first stop was at Booz Allen Hamilton, where I was a technology consultant, then went to NYU to learn finance, got a finance degree, then went to a CPG company like Kraft Foods so I could learn how to take a product idea and turn it into a real product and negotiate it into the shelves of Walmart and Target.
• 4:32
  Then I looked to see how I could understand how to create strong brands, so I joined a branding agency, checked the box there, went to have a global experience, so I did some consulting at Samsung in South Korea and Philips in Amsterdam so I could understand how to work cross-culturally.
• 4:47
  And then I came, you know, back here. I started another venture, you know, outsourcing hair and makeup artists, um, to, uh, companies.
• 4:56
  So a lot of companies didn't have that talent, and there were online retailers like Amazon that needed this talent.
• 5:02
  They didn't wanna have it on staff, so I would just outsource to, um, businesses, hotels, and things like that.
• 5:08
  And so after that, I started working with a, um, a doctor actually, who was looking to build a multi-location clinic.
• 5:16
  And so I came on as head of product development and marketing and used basically all of the skills I had learned along the way to help him grow and scale his business, and now he's the largest dermatology clinic chain, um, in the Northeast.
• 5:30
  So that's really my superpower, is helping businesses scale and grow, um, and branding them and creating the necessary infrastructure so that they can do that sustainably.
• 5:40
  Um, and so how I got into investing, which leads me to SteelSky, is that when I was working at the dermatology clinic, I was kind of, you know, one of the only business people, [laughs] um, uh, on the team at first.
• 5:53
  And so I was-- And also because of my tech background and my product development background, I was the gatekeeper of the types of softwares, applications that we use, appointment booking tools, and retail products as well.
• 6:06
  So I was getting pitched twice a week from vendors and startups, um, to be able to sell in our locations.Are at that time over 50 locations.
• 6:15
  Um, and so in doing that, I saw some really interesting startups that I wanted to s- to learn how to invest in.
• 6:20
  So I joined a group called Pipeline Angels, uh, which is a group of women investors who invest in female-led companies, and I started investing.
• 6:28
  So for the last three years, I have been investing, leading angel syndicates full time, and I really loved being on that side of the table and also being able to influence and help a lot of companies using the expertise and the knowledge I had built over the last years of being an entrepreneur and also, uh, working within corporate, um, settings.
• 6:47
  So, um, what I did is I just started, you know, investing. I- I had invested in about seven companies, and five of them were in women's healthcare, and I was like, "This is strange."
• 6:57
  These companies have amazing teams, really bright female-led companies. They had huge market potential that was basically untapped, and the deals were fairly priced because literally no one was investing in these women.
• 7:12
  So what I found was women's healthcare was an underfunded segment with underfunded entrepreneurs, so two-thirds of the founders in the space were female.
• 7:21
  And so y- as we know, the statistics, women were receiving less than 3% of venture funding, and so even less so for these stigmatized hu- women's health, um, companies and innovations.
• 7:33
  So that just seemed like a really interesting gap in the market that I thought I could fill, so I started Steel Sky Ventures to invest in these companies.
• 7:42
  So we invest in companies that create access, care, and out- better outcomes for women's health. Um, so we invest across the spectrum. We invest, um, in several different verticals.
• 7:53
  Right now, some of our investing themes are in, you know, fertility. Uh, we're looking at maternal mental health. We're looking at incontinence.
• 8:03
  We're looking at menopause, which is going to be a billion women experiencing in the next five years, and we don't have great products and solutions.
• 8:10
  So those are some, um, of the women's health verticals that we're looking at. But at the end of the day, we're investing in digital technologies.
• 8:16
  So we were investing in remote patient monitoring, telemedicine, D2CE pharmacy before it was cool.
• 8:24
  You know, post-COVID, all of these things are all the rage, but we were investing in them since three years ago when people, you know, were, were...
• 8:31
  You know, they weren't as bullish on telemedicine and all of these types of platforms as they are now.
• 8:36
  So we're excited about where our investments have gone and w- the trajectory we see in women's health tech going forward. Awesome. Uh, great, great way to kick us off.
• 8:49
  Um, you know, uh, obviously, women's health, um, as you were saying, is, is under-invested in, um, and, and there's a real lack of financing for, for female founders in general, um, which is contrasted with this boom year that we're experiencing for digital health as a broad sector.
• 9:10
  Um, so, you know, we always say that the tide rises all the boats, but it does feel unfair, um, you know, for, for the folks that are not getting funding.
• 9:19
  Um, how do you see the rise of, of platforms, um, and, and kind of these larger deals as an opportunity perhaps for, for women's health companies?
• 9:30
  Um, you know, what, what kind of strategies can they glean from, from these successes? Well, I think, number one, some of these larger successes are actually women's health companies that were started by men.
• 9:44
  So you can tell just how, um, you know, unfair, I guess, the capitalization is, is the biggest women's health companies are Roman and Hims, and then they stuck in a Rory and a Her at the end.
• 9:56
  But they're the largest ones because they're able to get capital at scale, um, and scale very quickly.
• 10:03
  So, um, but what we can see from, for women's healthcare in the future is some of these larger platforms are going to wanna have some specified niche areas that can plug into their larger platforms.
• 10:16
  So women's healthcare companies, you know, while they're starting out, they may think, you know, they don't need a, you know, $100 million ex- ex...
• 10:23
  You know, a billion-dollar exit, especially, you know, if you're getting in early to these companies.
• 10:28
  And so most of the companies we're investing in are a Series A or late seed, which are, you know, 10 million to 15 million, and it isn't out of the realm of possibility that these companies would be acquired for 100 or $150 million.
• 10:40
  So we don't need to create billion-dollar companies and have billion-dollar exits to get great returns.
• 10:45
  And so we think that some of these larger platforms are very well capitalized, will have the cash and w- not wanna have to reinvent the wheel themselves, and they'll start acquiring some of these companies.
• 10:56
  And what we've seen right now in women's health is it's new and nascent, so there's a lot of innovation, but a lot of these, uh, founders are approaching and...
• 11:06
  Approaching issues that are pretty niche within women's healthcare.
• 11:09
  And so eventually, there's going to need to be a roll-up because individually, they're not, you know, $100 million companies, but their value will be when they join together and create platforms, as you said, Katya, and that's sellable to, you know, CPG companies or, you know, Medtronics because they wanna b- buy platforms, um, that can create more value.
• 11:31
  Mm-hmm. That's a great point.
• 11:34
  Um, Stephanie from Lactation Lab, um, if, if you wouldn't mind coming off mute, and since we have a, a smaller group today, it'd be great for you to ask your question yourself and, and quickly just tell Maria what you do because I think, um, there will be some, you know, understanding there and then for context for your question.
• 11:54
  Oh, hi there. Um, so I'm a physician turned entrepreneur, and I started Lactation Lab, which tests breast milk. And, um, we've expanded to do some telehealth, you know, because it's the cool thing to do. [laughs] And...
• 12:08
  But I wanted to see what a- what advice you have for-You know, I think you just kind of hit the nail on the head.
• 12:15
  Like, I don't think that I'm gonna have a billion-dollar company, but I've found myself, like, when I'm pitching, especially to a room full of men, when they're like, "Well, I don't get the issue of, like, nutrition, diet, how it affects breast milk.
• 12:28
  I don't get this. I don't get the problem." And/or I'm told the market isn't big enough.
• 12:33
  And I was curious what advice do you have for, exactly like you said, like, uh, like, you know, I have a very niche product, a very niche, you know, market. But like, again, how do you...
• 12:43
  how does someone in my stage then get funding and get in front of these, you know, folks? Well, I think having the right valuation is key.
• 12:50
  Um, because if they can figure out- if you can tell them that they can generate a 10X return, they're not gonna snub their nose at you, you know?
• 12:57
  So you need to tell them why you don't need a billion-dollar exit or why they can get a great return. Um, but, but you also need to think if VC is the right funding for you.
• 13:06
  If you think your product is very niche, it's not gonna be attractive to VCs. So, 'cause we have to return a certain amount, um, to our investors.
• 13:14
  So you might look for other forms of investment or go down, you know, maybe angels, and they can get you to where you need to get.
• 13:22
  Because angels, a lot of times, are investing with a passion, um, because it's their own money.
• 13:26
  And I've, you know, started as an angel investor, and I still angel invest because sometimes I just wanna see these companies in the world, and I wanna give them a shot.
• 13:33
  But for my fund, I wouldn't be able to do that because I have to be res- fiscally responsible to grow our investors' money. So als- so first of all, think about if VC money is the right money for you.
• 13:45
  If so, what kind of VC money?
• 13:47
  And then third is, you know, maybe there are some strategic partnerships that you can have with hospital systems or things like that, and you can talk about how this opportunity can become big.
• 13:56
  You, you may not see it yourself. You may only see, you know, one or two channels. But if you maybe talk to some other people in this space and look to see, you know, how can this opportunity seem bigger?
• 14:06
  Because what you're doing is really important. I could see healthcare systems using it. I could see, you know, different countries using it.
• 14:12
  So why don't you just try to broaden your total addressable market and think about everyone who could use it, who it could provide value for, and then you can increase your market size, and then you can increase the revenue potential, and then you'll be more interesting to investors.
• 14:27
  Thank you, Maria. And, and I agree. I've... I think, Stephanie, the addressable market, um, for Lactation Lab is, is huge. I think it's a massive and very exciting opportunity.
• 14:37
  Um, Richard Hanbury from Sana, why don't you come off, off mute and tell Maria what, what you guys are, are working on, um, and ask your question. Um, yeah, sure. So,
• 14:49
  um, we have a neuromodulation device that uses audiovisual, um, neuromodulation. Originally, um, I did it to solve my own pain problem post spinal cord injury.
• 15:00
  Um, and, but it turns out that nearly all chronic pain is a combination of, um, pain, anxiety, sleep issues, depression, um, and fibromyalgia. Um, you're adding in PTSD.
• 15:14
  Um, we've had really difficult funding times because, um, typically, you know, uh, uh, a, a VC will ring up their doctor buddy and go, you know, "What do you think of this area?"
• 15:26
  And fibromyalgia is 10 million people diagnosed, um, 85% women, and a typical male doctor goes, "Yeah, well, it's not really a thing. It's diagnosis of exclusion."
• 15:37
  And they get all the reasons why not, and we get shown the door even before, um, we, we, we have an ability to demonstrate. And then the flip side of that is if we...
• 15:49
  o- once we do get the funding, we've got no competition because no com- competition's being funded. So my question is around, you know, how...
• 15:56
  And, and, and the other challenge I've had is that, the, the, the people who focus on, um, uh, women's health,
• 16:04
  I mean, if you look around the, look around this call, um, they wanna fund, um, women CEOs and not necessarily top teams that have, um, you know, an equal balance, which is, which is what our, ours does.
• 16:18
  So I would love any advice you have on, you know, how we approach the area because we're having, we're having trouble getting funded when we're dealing with a problem that is massive, and we have a really good solution.
• 16:29
  Well, we're equal opportunity. If you're coming with a good solution that can help improve women's healthcare, we don't care who you are.
• 16:35
  So that's not the same for all com- women's health, you know, funders, but just know that, uh, people want to create space. They have a passion, and they want to improve this space.
• 16:46
  And so I would, you know, still try to go to them, and don't count, discount us all. But, um, number two, I would say, is your product reimbursable? Um, not yet. And that's the sort of...
• 16:59
  That, that, that's the sort of... That would be part two of my question. So- Mm-hmm... um, we know... So when we approached Anthem, um, we were part of, um, the Anthem Scale, um, challenge.
• 17:10
  So w- we've had in-depth discussions, and we say, "Okay, here is our problem. This is the one we wanna solve. We can solve all these other ones, but this is the one we wanna do first."
• 17:19
  And they go, "Yeah, we wanna do lower back pain first. Um, w- we'll do fibromyalgia fifth or sixth down the line." And, um, a- a- and so
• 17:30
  going for that reimbursement pathway, we know it's not top of people's agendas, um, 'cause we've had that same feedback from other people. So we wanted to start going direct while we're doing that process.
• 17:44
  And then from the VC point of view is, "Oh, you're going direct to consumer. We don't wanna know," even if your medium term is reimbursement.
• 17:51
  So that was my second part of the question is like, how do you, how do you solve that problem? Because, I mean, um, in our space in neuromodulation, Cala Health managed to do that.
• 18:02
  They managed to charge direct, direct whilst they were going for reimbursement, and I'm having real trouble selling that story of like, "Yeah, th- this is where we start, and this is where we end."How d- how- what advice have you got on how, how people could pitch that to, to VCs like you?
• 18:20
  Well, I don't know how you're currently pitching it, but you might wanna work on how you're telling your story and how you're talking about the opportunity.
• 18:27
  Because, you know, at the end of the day, we want a huge opportunity, and there's certain VCs... And you could be pitching the wrong VCs. There's certain VCs like me, who I don't wanna wait 10 years.
• 18:37
  I don't wanna sit through your FDA approvals, and I'm an early-stage fund, so I don't have the money to finance all of these clinical trials and things.
• 18:43
  So you have to make sure, even if you're going to a healthcare VC, it needs to be one that has the appetite for what you're selling. Um, so that wouldn't be the case for us.
• 18:50
  We don't invest in any companies that aren't FDA-approved or just need a, you know, a quick 510[k].
• 18:55
  So we can do those, but for anything that includes all of the studies, like, we just don't have the capacity, and that's not in our fund model. Um, so those are some things to think about when you're going.
• 19:06
  And it's not always that they just don't like your idea. Sometimes it just doesn't fit in their investment thesis or framework. It doesn't mean you don't have a good idea.
• 19:14
  And so you're gonna have to just keep pounding the pavement till you find someone who does resonate, who's the right kind of VC, um, that would invest.
• 19:22
  So what I would say is if you've seen somebody be successful at it, go look at their cap table and see who's invested in them and see who's on it, because that will give you an indication of somebody who understands your business model, what you need to do, and they may have the patience and the experience to usher you through that process.
• 19:37
  Dorothy, I know you have to jump in five minutes, but you had a question you wanted to jump in and quick, quickly share, uh, what you're doing at Oritel with, with Maria and see if you can get a quick answer.
• 19:47
  You need to come off mute, though. Um, I... Hi, Maria. S- um, really appreciate your presentation. Um, we have a very simple test that tests for endometriosis that uses saliva. Oh.
• 19:58
  And we have this little reader that you can pick up on your iPhone. Mm-hmm. Um, and we're in a very early stage. We're doing a 200, uh, patient retrospective study.
• 20:08
  But we wanted to understand, um, in our phase of development, which is pre-regulatory, when i- when is a good time to approach a, a venture capital company?
• 20:19
  Uh, we're funded right now by our partners in Norway, but down the line, we're gonna need several million dollars to get through the regulatory process. Yeah. So I would, um, say, I mean, if you could go to...
• 20:35
  I guess we can't go to conferences now, but I think it's good to get in front of people and, and not ask to pitch them, just share what you're working on.
• 20:43
  So I really appreciate that because they know we're so busy, um, in looking at a lot of different innovations. But you can just reach out and say, "Hey, I know you invest in something like this. We're very early."
• 20:53
  'Cause I think it's also important that you, that you've done your research and you understand what the VC invests in and at what stage.
• 21:01
  Because if I'm getting, you know, something that's an idea on a napkin, and they know I invest in series A, it's just not a, it's not a match. But if you...
• 21:08
  If they acknowledge it and say, "I know I'm very early, but I just wanted to know if you had five minutes to give me some feedback or thoughts, or do you know anybody who invests pre-seed, very early stage, who may be interested in the technology," that's something that I can respond to.
• 21:22
  And, um, especially for us, like, we always wanna be helpful where we can, especially anybody in, uh, you know, investing or their time in creating solutions for women's healthcare.
• 21:31
  We will try to put you with an angel group. Um, you can get free, free office hours from Golden Seeds or, or one of our other angel groups that could give you direct feedback.
• 21:40
  Um, and so I think that, um, maybe reaching out to a couple people. But what you have is something that's really, uh, top of mind for all women's health VCs, so that's something we're looking at.
• 21:50
  So that's something that we would wanna start tracking now, 'cause I... What is the name of your company? Oritel Diagnostics. Yeah. So, uh, it- that's really interesting.
• 21:58
  And so we would put you on the radar now and try to help you get, you know, resources, and then kinda track you as you continue through the process. Yeah. Well, maybe we should get in touch sometime.
• 22:11
  Um, I'm gonna have to apologize because we're also working with the dairy industry, and I'm in touch with some farmers in New Zealand, and they have to talk to me in three minutes. [laughs] No problem. Well, good luck.
• 22:24
  Okay. [laughs] Thanks, Dorothy. Bye. We'll, we'll make sure you, you two connect. Okay. All right. Take care. Bye-bye. Okay. Bye. Good luck. Bye. Thank you. Dor- Dorothy has a diverse, uh, set of meetings in her day.
• 22:37
  [laughs] Guess so. [laughs] Yes. Um, Missy Lavender, uh, why don't you come off mute and introduce yourself and ask your question? Hey, Maria. Thank you so much for being here today. I, um,
• 22:49
  literally got caught in a rainstorm on my way home, so I look like a drowned rat, so I apologize for that.
• 22:54
  Um, so we're in p- women's pelvic health, so when you were talking about incontinence, I was, um, giving you snaps on that. And I see that you're investing in Joylux, which, uh, is a company I know and love.
• 23:05
  So we're early stage. We're too early for you, but we're developing a digital therapeutic for... Right now, we're working on overactive bladder. It's our first indication, so speaking of big addressable markets. Mm-hmm.
• 23:14
  But I'm just curious, um, how you're looking at the digital therapeutic space. They don't necessarily have to, but most of the prescribed ones obviously are FDA-approved.
• 23:23
  So just curious if you're looking at those and what you, what your thoughts are going forward. Yeah, I mean, I'm- I like companies, I mean, for us, that are kind of like B to, B to C.
• 23:38
  You know, kind of like Colette's product, Joylux, which is in- Mm-hmm... easy to get, you know, in the market. We can sell it direct to consumer, or we can sell a pro version.
• 23:46
  So I really like that, um, kind of business model that she has, and it's- Mm-hmm... you know, done really well. I'm very bullish on the space, as are a lot of other people and as are corporate strategics.
• 23:56
  So I have a monthly meeting with, um, you know, all of the CPG companies, the med device companies, you know, a- and all those types of companies.
• 24:06
  So I know what they're looking for, and what you're building is very high on the list. So- Mm-hmm... um, it's something top of mind because the market is so big, and there's not a lot of great solutions.
• 24:15
  And people are needing- Mm-hmm... a lot of solutions and demanding solutions. And so these big companies need to fill these gaps in their portfolio. Mm-hmm. So whatever you're building- Mm-hmm...
• 24:26
  you know, has a high opportunity and chance to be something that could be acquired as they try to fill gaps in their portfolios. Mm-hmm. Great. Thank you.
• 24:34
  When you and I spoke, we talked a little bit about, um-COVID and just our experiences, you know, operating during COVID and how it's changed your investment thesis. Um, Dr.
• 24:45
  Alexandra Greenhill, if you wanna come off mute, you have a question along these lines. Uh, why don't you intro- introduce yourself, um, and, and ask your question. Hi, Maria.
• 24:56
  Uh, I am a, a physician, and we're working on a care collaboration platform that spans women's health as well as other conditions, and hopefully helps also with the caregiver burden because women right now are getting taxed with all of the child, elder care, and healthcare needs of the entire family.
• 25:13
  Um, the question that I had was more around, uh, you know, as the world has shifted, you know, we interacted with VCs at conferences.
• 25:20
  We, we all looked at the same speakers together and sort of created a worldview that was similar based on these inputs. So where should I look at now? Like, where are you looking now?
• 25:32
  Where can we get some of our joint understanding of how the world is changing so we can continue to evolve from that basis of, um, an, a shared knowledge?
• 25:43
  Lots of conferences have gone online, and then Startup Health, [laughs] um, is a good place to be. There's a, a ton of women's health conferences, women's health innovation conferences, um, and pitch competitions.
• 25:55
  I think you should, you know, enter those, and then it gives you an opportunity also to be able to interact and sometimes attend these conferences for free, 'cause sometimes they can be rather expensive.
• 26:05
  So there's a lot of content online, and there's a lot of conferences that... So I think all of those conferences still exist.
• 26:13
  It's harder to interact, but a lot of them have, you know, one-on-one rooms where you can, you know, connect that way as well. Um, but I think I would look on LinkedIn a lot. So if...
• 26:24
  I don't know how active you are on LinkedIn, but that's where I find a lot of conferences, especially if you're following different women's health influencers.
• 26:31
  Um, that can be a way for you to see what panels they're speaking on. Um, a- and I've, I've seen a lot of that post-COVID mo- more than, than I [laughs] uh, have a s- appetite to watch or be a part of.
• 26:44
  I'm a part of a lot of them, too. So if you follow me, you'll definitely hear a, a lot of conferences and panels that you could get some content from. Great. Thank you.
• 26:54
  And, and along those lines, Maria, how has the pandemic changed your strategy, if at all, or the way that you operate? Yeah.
• 27:04
  Well, one of our strategies before, we were looking at some medical devices and some different kind of software optimizations, you know, for women's healthcare.
• 27:13
  But anything now you have to sell within a hospital, we're kind of putting that on pause because it's just so hard right now. People just can't get into hospitals.
• 27:22
  And if, if the business model included going to sell in a hospital, we're not looking at those kind of companies anymore.
• 27:29
  We're just going all in on our digital platforms, our telemedicine platforms, our remote monitoring, um, and anything that, um, can keep people out of the hospital.
• 27:38
  So JoyLux we mentioned, um, is a at home incontinence tool.
• 27:43
  So when COVID happened and they outlawed all the, uh, elective surgeries for women, a lot of doctors were prescribing that tool for pr- for relief and also therapy.
• 27:55
  So we're trying to find other opportunities, um, that people can use post-COVID. But most of the things that we had been investing in, you know, have just accelerated, and we're continuing down that path.
• 28:07
  Um, but more excited about the opportunities and opportunities to scale these much more quickly than we had anticipated. We're also- What about- Go ahead. We're also looking in- No, go ahead...
• 28:19
  for all of you that are entrepreneurs, don't forget the Medicaid market.
• 28:24
  So that's something that's very top of mind for insurers and also, um, you know, investors, uh, especially investors that are looking to create impact.
• 28:34
  That's a huge market opportunity, and it may be a little difficult, but we like our companies to think about crafting a holistic strategy that includes, um, all types of, um, payer communities.
• 28:48
  Um, you know, we had a, a VC on one of these sessions a couple of weeks ago who was, um, more of a, like from more of a traditional old school firm.
• 28:59
  Um, and great guy, but he has more of a traditional mindset and talked about, he's not sure he's gonna be comfortable making investments, um, in companies that he doesn't spend any face time with, you know, even if that face time is with a mask, uh, or from six feet away.
• 29:14
  Um, now we know that's not the- that's not everybody's mindset.
• 29:18
  Um, curious where you land there and, and if, you know, how you've been investing in terms of even the sequencing and logistics, um, has changed during COVID, if you, if you feel like it's been harder or easier.
• 29:31
  I think that's always helpful for, um, entrepreneurs to hear multiple investors' perspectives on that. Yeah.
• 29:38
  So we've invested in three companies in the last couple of months, and I've never met any of them ever, and it's not a problem to me, um, because I have kind of a new school way of thinking.
• 29:50
  And, uh, we talk to entrepreneurs everywhere. So we're actually investing in the US and Israel specifically. So I don't expect Israeli entrepreneurs to be flying over to see me in New York. So, um...
• 30:01
  and I, and I-- we can't do that now. So I think people are gonna have to start to adapt. And, you know, you have to think about if a VC isn't willing to meet you where you are, are they the right VC for you?
• 30:12
  M- maybe you wanna be with a more, you know, cutting edge new VC, and maybe that's just an indicator of the types of ideas that you're gonna have and see if you're aligned.
• 30:20
  'Cause if, if you wanna be aligned with your VC because you're gonna be with them for a long time, and if so, this is just an indicator of how that would be working with that type of VC.
• 30:29
  Not to say that's bad, but, you know, some people like that.
• 30:33
  I mean, we're, you know, fundraising for our fund, and some people, you know, will invest in our fund without a handshake, and I'm not flying to Michigan, you know, to shake your hand.
• 30:42
  So, uh, I won't be able to, to pick up that check. But there's a c- a lot of other people who have invested in us. We've raised, you know, over $20 million, and I have never seen any of these people.
• 30:52
  They've just, you know, seen me in this square box. Um, I don't really see a difference. I think if you're spending time, time is time. If you have a great idea, it shouldn't matter where you are.
• 31:01
  And, and even pre-COVID, we didn't require an in-person meeting.Mm-hmm. Yeah, I think that's awesome. You know, you know, uh, we've, we've discussed that we have the same mindset there.
• 31:13
  We have companies in 26 countries, so we certainly haven't visited 26 countries to, uh, make those relationships work. Um, but, you know, I think it's a good...
• 31:24
  It's, it's just a good thing to, to keep in mind when you're fundraising is, is it's okay to ask those questions directly too. You know, have you... Would you write a check without meeting someone in person?
• 31:35
  Have you done that in the past? Um, and, and be really upfront when screening investors, you know, so that you're not wasting time. Um, let's see. Jill Angelo from Geneve.
• 31:47
  Um, why don't you come off mute and introduce yourself? Geneve... If you're familiar with Geneve, Maria is in the menopause space, so, uh- Yeah... have you guys met, met, met, met before?
• 31:57
  I think I met you at Boston at, uh, the Women's Health Innovation. Yeah, yeah, when we were still meeting in person. Um- Yeah. [laughs]... thank you, Maria, for, uh, joining us today. Um, love what you're doing.
• 32:10
  Um, so yeah, I'm, I'm Jill Angelo from Geneve, and, uh, we focus specifically on providing a platform of care for women in menopause across telemedicine, um, products like supplements, and then free education.
• 32:23
  And as you, um, are focused, I love, I love the notion that you're really looking at women's health from a remote, um, care perspective.
• 32:32
  Because, you know, we're seeing women put off mammograms, and Pap exams, and colonoscopies, and the sorts of things that have required an in-office visit.
• 32:43
  And, you know, two years down the road, what are the downstream impacts that are going to come as a result of preventative care really being put off?
• 32:51
  Um, so as you look at the companies that you're investing in, um, what kind of KPIs or what kind of, like, progress do you wanna see, um, in terms of remote care or engagement with patients?
• 33:04
  Um, what, what's kind of your bar, and, and where do you like to see, uh, real growth and mastery in terms of, um, connecting with women? Well, I think that it depends on the business model. Um,
• 33:17
  if your business model is, you know, connecting remotely, we like to see, you know, what your year, month-over-month growth is.
• 33:24
  Um, especially during COVID, if you haven't, you know, generated, you know, great year, month-over-month growth, then I'm gonna question, uh, if you are targeting the right market.
• 33:34
  You know, how you're y- how you're going about it, if your strategy's working, if you have something that's of interest to people. Because the right strategy, I've seen amazing growth.
• 33:44
  S- companies that launched during COVID that are at one million ARR in, in six months. So it can be done, and so the... I've seen it, you know, accelerate.
• 33:54
  So if you're not accelerating, you might wanna go back to your playbook and kind of see where you're falling down. There's no magic number, because everybody's, you know, at a different stage. But you...
• 34:03
  I would say, you know, some of the great companies are doing 30% month-over-month growth in this timeframe. Some of the even better companies are doing 100% growth that have telemedicine access, um, in this timeframe.
• 34:18
  But, uh, I think it also can just help inform you if your strategy's working or not. Because you know there's more people out there who are now open to using these different forms of accessing care.
• 34:28
  So I would just kind of think about your strategy of doing that if you, if you're not seeing accelerated growth. So you're, you're seeing lots of, um, pitches, Maria, and evaluating a lot of opportunities.
• 34:40
  A lot of folks on this call are fundraising. Um, so would love to dig in on, on, you know, some of your insights. Um, you know, what are some...
• 34:50
  What's, what are some of the common mistakes you see entrepreneurs make during, um, fundraising? What are some pitfalls that you recommend folks avoid?
• 35:00
  So number one is to make sure you're reaching out to the right VC for you at the right time. Um, that is just number one. [laughs] If it's a late-stage investor, do not go to them if you're a seed.
• 35:14
  Uh, it, it just already starts off the relationship, meaning that you don't do your research or that you have poor judgment. So when I get an email like that, it's, it...
• 35:23
  and you don't acknowledge it, then, you know, that's already getting off on the wrong foot. Number two is to know your unit economics. That's really important.
• 35:31
  And even if you're not the person in the company that manage the financial models, you need to know how to explain it if you're the one that's pitching.
• 35:39
  So if I ask, you know, what ARR, what your LTV is, what your CAC is, you, whoever's giving the presentation, no matter what your role is, you need to be able to answer those questions.
• 35:49
  Um, and I think that's one thing, especially a lot of female entrepreneurs need to make sure that they're getting better at. Because I see that as the, uh, as one of the kind of weaknesses, um, that I see.
• 36:02
  They'll leave it to the CFO. And just, you know, traditionally, women have, a lot of times, defer to men when it come, when it, it comes to finance, or, or accounting, or things like that. But just know your numbers.
• 36:14
  Um, and number three is make sure your market size is big enough. Because what we're looking for are companies that we can invest in that are gonna grow and have an exit so we can get our money back or make more money.
• 36:28
  So think about that with your presentation in mind. A lot of times people come with these great stories, these good narratives, but it doesn't really get to how I'm gonna make money.
• 36:39
  Um, I wanna sell all the information in the world, because I want everyone to have access to information. But, okay, how are you monetizing the information?
• 36:45
  What's the business model that's gonna drive value, monetary value, other than just impact?
• 36:50
  And there's some funds or firms that are interested in just creating impact, how many people can you help, but most VC funds are looking for return. So think about that in mind when you're telling your story.
• 37:01
  And it's important to put passion and enthusiasm, but also make sure you're focusing on your business model and how you're gonna generate, um, returns and, and an exit.
• 37:11
  Thank youUm, those are, those are some awesome ones. Um, and, you know,
• 37:19
  th- g- given that you have been an, an active angel investor and member of multiple angel networks, um, just curious what you can share around entrepreneurs, um, who are trying to find more angels to pitch to.
• 37:35
  Um, we have a number of resources where we track investors, um, including angels, that are available to our companies. But also, you know, the angel market is, uh, angel community is very siloed, a lot more so than VCs.
• 37:51
  Um, any advice for entrepreneurs on finding, um, angels, maybe some resources that they wouldn't be aware of, um, and, you know, just pitching them in general and kind of navigating that realm?
• 38:03
  So the Angel Capital Association is something that should be on everyone's list. It's the biggest, you know, organization of, of angel investors, and they have weekly pitch sessions. The...
• 38:15
  And o- one of the benefits of being very siloed is that you get people that are actually interested in what you're pitching.
• 38:22
  So I tune in to their, you know, monthly women's health one, um, and then, oh, uh, our digital health one. So they're very, very siloed. And I would say that you should look within your region too.
• 38:34
  So a lot of angel groups are regionally focused, and they wanna invest in companies in the Pacific Northwest, or they wanna invest in companies in the South, or they wanna invest in companies with a woman founder, or they wanna invest in companies that are doing environmental sustainability.
• 38:50
  So because they're so siloed, it should almost... w- if you, you know, when you find them, it should really be an opportunity for you to be pitching in front of people that are interested in what you're creating.
• 39:03
  And so I would maybe go to the Angel Capital Association and then look and see, um, what those are.
• 39:08
  And then there's a lot of groups that may be listed on there that are members of the Angel Capital Association, and you can go on there and look them up.
• 39:15
  And then you can say, "Oh, okay, Pipeline only invests with female founders. Oh, with a social responsibility platform. Golden Seeds invests in all people, but if you're a consumer, you need 1 million ARR." So it's...
• 39:29
  I would just go and try to look for those lists of who is in the Angel Capital Association, 'cause that should be a pretty robust list. Awesome.
• 39:40
  Um, and as Jen put in the chat, um, you can always use StartUp Health IQ, um, our database tracking investors as a, as a jumping-off point to build those target lists. Um, think most of you have that, that link by now.
• 39:56
  Um, so any big, um, as we're kind of rounding up towards the top of, of the hour, Maria, um, any big predictions that you have, um, for, for 2021?
• 40:07
  Where do you see women's health going, um, if you had to kind of look into your magic eight ball?
• 40:13
  Um, what do you think the big, the big advancements and breakthroughs, um, where are they g- going to be for, for women's health?
• 40:23
  I think, um, the biggest breakthroughs are going to have to be in where Jill's creating, like that segment. Everyone's looking for something in that segment.
• 40:32
  If you can break through and you can get that market, you will win. Because we... In women's healthcare, we have the opportunity to create new market segments with no market winner.
• 40:41
  So if you get in the head of the curve, you can win. And so we think that's a really awesome opportunity, and we can also kind of help fund those be- up the pipeline.
• 40:51
  Um, and so we're really excited about th- the creation of new categories and the, and the ability to create, you know, billion-dollar companies.
• 40:59
  Because once we can do this, once this first wave of women's health entrepreneurs can get up the funnel and to have IPOs and billion-dollar exits or, you know, couple hundred million dollar exits, then the amount of money that's going into them will flow, hopefully, um, more readily.
• 41:19
  Awesome. Yeah, I... It's, uh...
• 41:22
  A lot of folks on this call have, have been at it for a long time, either with their current business or previous businesses in this space, and I think, um, a lot of us can relate to, you know, being, being early- Yeah...
• 41:35
  in this space. And, and it's, it's really...
• 41:38
  You know, our co-founders, Steve and Unity, before StartUp Health, they had a company called Organized Wisdom, which was a digital doctor's office, um, you know, before social media.
• 41:48
  This is, like, you know, 15 years ago. So just so, so early and, and we've seen it time and again. Um, you know, it's hard to be early when you know you have a big idea, you're at- attacking a big opportunity.
• 42:03
  Um, but, but, you know, we like to look, invest in com- companies with founders that have kind of the tenacity to stick through it. Um, and so
• 42:12
  I know that, that it feels early to some of the founders in, in the space that you're tracking, but the opportunity is, is long overdue. Um- Yes. For sure. Uh- And now is the time that you're in it. There should...
• 42:23
  There's gonna be headwinds, so don't give up now because- Exactly...
• 42:26
  because we're making this happen, and there's more women, you know, VCs out there who understand the problems that you're solving, and we're, you know, getting our funds so that we can, you know, continue to deploy capital and help you scale.
• 42:39
  Yeah. Um, Logan, from our, from our team, why don't you come off mute and ask Maria your question? Sure. Thanks. Uh, great to, great to hear your wisdom, Maria.
• 42:49
  Uh, since you're investing globally, you talked about Israel, um, I'm wondering what opportunities you're seeing in terms of kind of cross-pollination, uh, globally. Sometimes we get in these silos.
• 43:01
  We think this is the only way to do health, and they're doing it some, a completely different way in Scandinavia or in, uh, Asia. Uh, and there's so much to learn when we, uh, start thinking that way.
• 43:15
  So are you seeing anything, uh, globally that you see as particularly interesting opportunities?So, in Israel, they're like the IVF capital of the world, and as we know, IVF has such poor success rates in the US, under 30%, and be- that's because we have to pay for it ourselves.
• 43:32
  Um, in Israel and other countries, the government pays for IVF.
• 43:36
  So, they don't wanna have to pay for multiple cycles, so they wanna figure out a way to improve the process so women don't have to continue to keep doing these cycles. And so, that's one thing.
• 43:45
  So, that's why they're really innovating and they're... A lot of the med tech over there is government funded, so all of the seed stage companies start out with $800 to a million dollars of venture capital.
• 43:54
  So, I see them able to, you know, get much farther, uh, because they're well capitalized very early on. But what they don't have over there is the ability to mass commercialize.
• 44:04
  So, everybody's, no matter where you are, you're trying to get over here, or you're trying to get to China, but that's much more challenging in healthcare.
• 44:11
  But a lot of companies over there, if they have a med device or a product, they're trying to get it to the US. And so, um, that's what we've seen there.
• 44:19
  But, uh, I, I think that bec- a lot of it is driven by the geopolitical, um, situation in these countries, of how they're innovating, and I think we could bring some of that over here, um, as well.
• 44:31
  Uh, and we're looking to help them do that. Awesome. Yeah, that's, that's long been part of our thesis too, is, is cross-pollinating learnings from other markets and, and helping companies cross borders. Um, okay.
• 44:46
  So, I think, um, with that, Maria, we're gonna wrap up, and thank you so much for your time and your insights.
• 44:53
  Um, I think it's been a, a wonderful session with a lot of practical, um, points and feedback and guidance for our Health Transformers, which I think, um, I know will be very valuable to them, and, and other folks who, who read the, the piece that Logan and his team will put together on this.
• 45:11
  Um, so I just wanted to say thank you so much. [outro music] StartUp Health invests in Health Transformers from around the world who are committed to achieving audacious health moonshots.
• 45:27
  If you want to learn how you can join this community of entrepreneurs, or if you want to connect with one of our 330 companies, go to startuphealth.com. Thanks for listening to StartUp Health NOW.
• 45:38
  We'll be back next week. [outro music]