Paul Gompers

Imagine swallowing the competition whole. That's what many players in tech do via roll-up strategies, gobbling up smaller firms to deliver richer solutions and amass greater market share. Where else are roll-up strategies common? // HEALTHCARE Picture being a patient at a medical practice that’s been part of a roll-up in Healthcare Services. It's an industry ripe for roll-ups due to its fragmented nature and potential for greater efficiency. // CONSUMER SERVICES Or let's say you needed your HVAC serviced, and notice your local repairman is now part of a bigger Consumer Services entity? Centralized management and scale economy turn these localized businesses into roll-up targets. // FINANCIAL SERVICES Think about your insurance agent or wealth management advisor. They're working in complex, highly regulated environments. In the Financial Services sector, roll-ups offer an effective way to consolidate expertise, streamline operations, and enhance customer offerings. // MANUFACTURING Now, imagine driving past factories under a new name — the result of Manufacturing and Industrial Services roll-ups. Bulk purchasing reduces costs, enhances production capabilities, and expands geographical footprints. // REAL ESTATE Lastly, envision your real estate brokerage firm. The industry sees roll-ups as a strategic move to increase market penetration, enhance service offerings, and hike up portfolio value. Roll-ups play a huge role in most industries, rather like a snowball rolling downhill, gaining momentum, and size. Are you seeing roll-ups in your sector or considering M&A?

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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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Today's post is about our commitment at Bread and Butter Ventures to investing in women's health within our healthcare vertical, which is a big focus of our fund. Our mission in healthtech broadly is to invest in technology that democratizes access to quality care for all. A report this year from Deloitte shared that investment in women’s health rose by 5% between 2022 and 2023 - heading in the right direction, however, women's health represented just 2% of the $41.2 billion in venture funding that went to health companies in 2023, according to Deloitte’s analysis. There is such tremendous opportunity to innovate and invest for half the world's population. This an economic imperative. Spotlighting today 5 outstanding healthcare startups innovation in women's health who are very proud to have in our portfolio: ⭐ Gabbi: is building a comprehensive breast cancer risk assessment and early detection platform, combining cutting-edge technology with personalized care. As a woman's virtual breast specialist, Gabbi ensures every woman knows her risk and has access to early detection via telehealth. https://www.gabbi.com/. Shoutout Kaitlin Christine ⭐ Chiyo: is a personalized & integrative food-as-medicine platform that helps the next generation of mothers looking for guidance as they navigate the acute transitions of fertility, pregnancy and post-partum. https://wearechiyo.com/. Shoutout Irene Liu ⭐ Delfina: is creating an AI-powered pregnancy care platform to solve the global maternal health crisis. Delfina lowers rates of adverse outcomes, hospitalizations, and NICU stays to deliver substantial savings for health plans and risk-sharing providers. https://www.delfina.com/. Shoutout Senan Ebrahim, MD, PhD Priyanka Vaidya Ali Ebrahim ⭐ Nest Collaborative is the first to create a nationwide network of lactation consultants, available to mom 24/7 through virtual consultations. We were also the first to offer mom a no-cost, insurance-paid experience - which means when she has a problem we can connect her with a consultant within hours and we take care of all the payment and paperwork on the back end. We are, in all ways, her BFF - Breast Feeding Friend. https://lnkd.in/gKCVYvtF. Shoutout Judith Nowlin ⭐ Myya: provides breast cancer survivors completely customizable, fully insurance billable post-mastectomy prosthetics with a state-of-the-art fitting experience online and in-person. https://myya.com/ Jasmine Jones #womenshealth #digitalhealth #venturecapital #startups

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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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"Digital health is no longer the future; it is the present, reshaping our healthcare landscape in real-time." Excited to be part of the UCSF Digital Health Hub Foundation's Quarterfinalist Party! As a past board member, I'm honored to celebrate the outstanding quarterfinalists. As we reflect on the state of digital health in 2024, it's evident that the COVID-19 pandemic has fundamentally transformed healthcare delivery. The rapid adoption of telemedicine during the crisis has become a permanent fixture, with over 60% of physicians continuing to utilize this technology. The sprint towards smarter healthcare, catalyzed by necessity, has shattered preconceptions about digital-first health experiences. Virtual care is no longer a stopgap but an integral part of a seamless, anytime, anywhere health ecosystem. 🌍 We're witnessing the rise of B2B2C models in remote consultations, with companies like Teladoc Health and Amwell partnering with insurance providers to integrate their services into health plans. Public sector collaborations, like eConsult Health 's partnership with the NHS in the #UK, underscore the potential for remote consultations to enhance efficiency and accessibility at a national level. The digital health landscape is evolving rapidly, with advancements in remote consultations, mental health support, at-home diagnostics, and patient monitoring. AI and generative AI transform care delivery, making it more efficient, personalized, and patient-centric. 🤖 Yet, challenges remain. While venture capital funding for digital health has stabilized after the pandemic boom, it remains below its 2021 peak. Sectors like digital therapeutics face reimbursement hurdles, and we've seen major players like Walmart and Optum close telehealth businesses. Looking ahead, we anticipate further consolidation in digital health, driven by acquisitions to create broader ecosystems encompass telemedicine, mental health, and other specialized services. As healthcare leaders, we must leverage these digital advancements to improve access, enhance patient outcomes, and drive efficiency in our healthcare systems. The future of healthcare is digital, and the time to embrace this transformation is now. Congratulations to all the finalists! 🎉 Looking forward to the grand finale at #HLTH2024 in #LasVegas! 🙌 By the way, the pink drink that we were holding was delicious—and nonalcoholic! The Digital Health Hub Foundation - Digital Health Awards #HealthcareInnovation #DigitalHealth #UCSFHealthHub #Networking #HealthTech #Entrepreneurship #LasVegasFinale Walter Greenleaf, PhD Daniel Kraft, MD Unity Stoakes StartUp Health University of California, San Francisco UCSF Innovation Ventures American Association for Precision Medicine (AAPM) WISE World Investors & Entrepreneurs Society #AAPMhealth #aapm_health

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The healthcare landscape is rapidly evolving, driven by advancements in technology and a deeper understanding of patient care. I had the pleasure of speaking with Ambar Bhattacharyya, Co-Managing Partner at Maverick Ventures, on the latest episode of The Full Ratchet. Ambar has partnered with numerous billion-dollar companies like hims & hers, Cityblock Health, Devoted Health, and ConcertAI. His unique journey from rural America to becoming a prominent figure in venture capital offers invaluable insights into the future of healthcare and technology. We discuss his investment strategy at Maverick Ventures, the megatrends shaping healthcare, the impact of AI on the industry, and the importance of integrated care. Ambar also shares his thoughts on the challenges and opportunities in healthcare investment, offering a comprehensive view of what lies ahead. Check out TFR Episode 438 to catch our conversation. You'll be glad you listened. Link to the full episode is in the comment section below.

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According to the latest report from Rock Health, digital health funding in Q1 2024 totaled $2.7B across 133 deals, with an average deal size of $20.6M. It doesn’t break out device-related investments, but most medtech founders I meet these days are being forced to chase tiny rounds made up of endless little checks, consuming valuable energy and slowing their progress. The benign neglect of this next generation of diagnostic and therapeutic devices is counterproductive and surprising. Given the crowded virtual care market, for example, I’d expect more such companies would be exploring medtech partnerships, investments or acquisitions that'd enable them to back integrate into delivering sharper, and more differentiated, care and treatment. This is exactly what Maverix Medical is doing from the other direction: Reshaping the entire spectrum of lung cancer care by integrating more advanced + effective approaches to screening and diagnosis, treatment and therapeutics, and even palliative care…And putting it all to work through an innovative provider network. One notable investor exception is Y Combinator partner Surbhi Sarna who’s been backing great teams like Selera Medical (YC W24) doing foundational work on ambitious medical devices. Without more support from investors like her, we’re going to increasingly find ourselves stuck with the incremental portfolio improvements from the incumbents, and that’s just not nearly enough.

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As physicians, we are committed to improving patient care through clinical excellence. However, there's an often-overlooked avenue where our expertise can significantly impact healthcare innovation: serving as medical advisors for startups. Here are a few reasons why I believe we should engage with the entrepreneurial community 👇 1️⃣ Driving Innovation Forward: Startups are at the forefront of medical technology and services. By contributing our clinical expertise, we can guide these companies to develop solutions that are not only innovative but also practical and patient-centered. 2️⃣ Broadening Impact: While our primary influence is within the confines of our practices or hospitals, working with startups allows us to extend our impact globally. Technologies we help develop could benefit patients worldwide, many of whom could never visit us in person. 3️⃣ Learning and Growth: Engaging with startups exposes us to the latest technologies and business strategies, enriching our understanding beyond the medical field. This cross-disciplinary knowledge can enhance our own practices and the way we approach patient care. 4️⃣ Professional Networking: Collaborating with entrepreneurs and other tech innovators can open new doors. These connections can lead to other advisory roles, speaking opportunities, and even advancements in our own careers. 5️⃣ Financial Opportunities: Often, advising roles come with financial compensation, including equity options. These can provide significant financial benefits, particularly if the startup succeeds. 6️⃣ I urge my fellow clinicians to consider stepping into the role of a medical advisor. Our insights are invaluable, and our participation can be the key differentiator in the success of health-focused innovations. ---- Join our vibrant community of 2,000+ healthtech experts and thought leaders. Comment below or DM me, and I’ll provide you with an invitation to our fast-growing network. 📩

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When is the right time for startups to consider going public? In this clip, Yassaman Salas, Partner, Global head of Medical Device at Goldman Sachs, explores the appropriate stage for companies to consider an IPO. She highlights how this decision should shape strategic planning early on and emphasizes the importance of revenue predictability in demonstrating readiness for an IPO. This discussion from #LSIEurope23, ‘Behind the Buyout: Navigating Strategic Partnerships & M&As From Both Sides of the Table’, gives a behind-the-scenes look at M&As and partnerships, explores strategies from both buyer and seller viewpoints, and shares real-world experiences to demystify the complexities of M&As. The full video recording of this panel featuring Ken Nelson, Nate Harrington, Kevin Rocco, Yassaman Salas, and Biren Mehta is available on our website and YouTube channel. Want to see more content like this? Registration and applications to present are open for LSI Europe ‘24 this September 16th - 20th at the Penha Longa Resort, in Portugal. Secure your spot today to ensure you get the best rate and secure a hotel room onsite.

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🌍 How is healthcare linked to climate change? Global warming is one of the most pressing existential issues of our time, and every industry, particularly healthcare, must play a critical role in addressing it. The global healthcare sector is responsible for 4.4% of worldwide net emissions, the equivalent of two gigatons of carbon dioxide each year. In the United States alone, the healthcare sector accounts for 8.5% of the country’s greenhouse gas emissions. Despite this dire challenge, innovative healthcare solutions hold robust potential to make a substantial, green impact. At Caresyntax, we are committed to sustainability and reducing the healthcare sector's carbon footprint. By optimizing hospital operations, our AI-driven solutions can lead to significant environmental benefits. For example, if Caresyntax were installed in all operating rooms worldwide, it could save 14 million tons of GHG emissions annually, equivalent to the emissions of the entire Air France fleet. Caresyntax’s data-driven platform not only enhances patient care but also contributes to a substantial reduction in energy usage and waste production. It's time for the healthcare industry to lead by example and drive positive change for both patient care and the planet. You can read more about healthcare greenhouse gas emissions here: https://lnkd.in/g9nEXtPs #AI #Sustainability #HealthcareInnovation #Caresyntax #GreenHealthcare

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It was wonderful to be in conversation with Madison Mills of Yahoo Finance at their annual Invest conference earlier this week. We covered everything from the venture outlook for 2025, impact of elections on women's health investing and innovation, and more. Full clip and summary below 👇 https://lnkd.in/gS67sc2Y

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What is the shift to preventive and specialized healthcare services❓ Studies show that preventive health measures could save the U.S. healthcare system up to $3.7 billion annually by avoiding the need for costly treatments later on. Moreover, chronic diseases currently account for up to 90% of healthcare expenditures, yet many of these are preventable with earlier interventions. As healthcare leaders, we have a responsibility to build systems that address issues before they become crises. Investments in preventive and specialized care are steps toward a future where healthcare is proactive, not reactive. At Caresyntax, we’re committed to using #Data to advance preventive care. By integrating AI solutions, our data-driven platform provides insights into patient risks, helping reduce post-surgical complications and offering preventive solutions. 🌟 It’s exciting to see the industry recognizing the value of long-term health and wellness. By investing in these areas, we’re not only tackling today’s challenges but also building a foundation for a healthier, more resilient future. #FutureOfHealth #PreventiveCare #HealthcareInvestment #DigitalHealthInnovation

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One of the most important concepts we introduced in our recent Healthcare AI roadmap is the notion of “Modality—Business Model—Market fit.” This concept describes how the delivery method and business model of AI in healthcare directly shape its potential to create value. There are many possible combinations of modalities and business models in healthcare. AI can be delivered as software, copilots, agents, services, diagnostics, or therapeutics, supported by business models ranging from usage-based and volumetric pricing to performance-based and shared savings arrangements. Nailing selection of modality and business model is essential for AI companies seeking large market opportunities and profitable operations. As we describe in an example with computer vision-based diabetic retinopathy screening, modality and business model selection can drive a difference in TAM by upwards of 25x, and has serious implications for overall margin structures. Read more here 👉 https://lnkd.in/eK7rjpJz

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I’ve had the chance to go deep with a number of digital health alum, healthcare mentors and #corporate innovation partners over the past few days. A few themes to share:   1. Digital will change healthcare. Period. How is hard. But it will happen and the best are continuing to push ahead. 2. What keeps companies in the S&P 500 for 50 years or more? Partnerships and innovation. This is why large systems must practice the hard art of both partnership and partnership towards innovation. For startups, partnership reps may be more important than brand. 3. There is a difference between needs and behaviors that startups need to understand, especially in Healthcare where incentives, process, practices are complex. Finding who pays early is not only essential but existential. 4. Don’t optimize for valuation, optimize for value. Over the long-run, this is what will matter. In Healthcare, today value will have to tie to ROI. Pharma, providers, payors are under pressure. Your solution needs to be must-have and drive ROI.   MC Healthcare was launched over 5 years ago to accelerate industry/startup intelligence and collaboration and commercial partnerships for digital health startups and industry (payors, providers, pharma). Calling startups to apply. Want to be a partner to find and work with the best? DM me directly.

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Great insights shared by Dr. Christopher Haley at Startup Genome on the vital connection between a region's assets and the appropriate accelerator stage. This article underscores how aligning these elements leads to remarkable outcomes in ecosystem development. A great read for all of my friends in ecosystem development. From my personal experience I'll add that misalignment, however, can have long-lasting effects. When startup programs or organizations backed by private or public funds falter, the recovery period for regions can extend from 3 to 8 years. This delay significantly impacts founders seeking mentorship, knowledge, and funding opportunities. #EcosystemDevelopment #StartupGenome #AcceleratorPrograms #FounderSupport

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Incredibly excited to share our updated Healthcare AI thesis. This is not a market map – in 4,000 words, we dive deeply into the research, products, business models, and market entry points that are reimagining healthcare with AI. More specifically, we cover: • Translating AI research into real-world products • Mapping modalities (software, copilots, agents, services, diagnostics, therapeutics) to problems in healthcare • Designing AI business models that unlock billion-dollar markets • Closing current gaps in healthcare AI infrastructure • Distinguishing AI platforms from point solutions Let us know what you think ⤵️

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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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We are getting closer to a new era in healthcare: a biological renaissance that I'm calling the age of MMMs, or Massive Multimodal Models. As they continue to evolve, MMMs will become incredibly adept at working with the different modalities of healthcare data at scale - pathology slides, radiology scans, molecular files, unstructured text, lab results, structured results, ultrasounds, electrocardiograms, and etc. In a new blog post, I share my thoughts on the ingredients necessary to make MMMs effective so that we can apply them to transform the healthcare landscape. https://lnkd.in/g_kvk9fG

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