SeamlessMD Podcast – Episode 25 – How to Raise Series A Funding for a Health Tech Startup

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Video:

In this episode of the SeamlessMD Podcast, Dr. Joshua Liu, Co-founder & CEO of SeamlessMD shares how to raise Series A funding for a health-tech startup using SeamlessMD as an example. See the full show notes below for details.

Guest(s): Dr. Joshua Liu (@joshuapliu), Co-founder & CEO at SeamlessMD

Episode 25 – Show notes:

[0:50] Why healthcare technology is different than other software regarding investor expectations for clinical evidence, study design reliability & validity, and integrations;

[4:47] Dr. Liu explains the semantics of a Series-A and how the priorities for a company at Series A stage includes growing the sales & marketing team following a proven, repeatable sales process and further developing product;

[7:51] Why integrations are more complicated in healthcare technology compared to other technologies due to single-platform Electronic Health Record (EHR) companies that are similar to operating systems for the hospital and are highly selective over integrations;

[10:38] How SeamlessMD hit important milestones prior to raising Series-A funding, including:

15+ clinical studies by academic hospitals with good results in improving patient outcomes such as length of stay, readmissions, ER visits, costs;

• Demonstrated strong business model & post-pilot revenue expansion;

• Validated EHR integrations with companies such as Epic & Cerner;

[13:44] How Dr. Liu leverages Series-A funds to meet the increased demand for digital patient engagement in the market, by specifically growing product leadership through deeper integrations and an expanding library of use cases and health system partners;

[16:37] Why it is important to choose strategic investment partners, such as investors whose motivations are aligned with the values of the company and who can provide moral support;

[24:25] Dr. Liu recounts a memorable piece of advice on customer-centricity he received from an investor; “listen to customers first, followed by domain experts, then investors”, implying that investors are fantastic for leveraging past experience, but are removed from the business and therefore can sometimes lack specific context;

[26:50] How SeamlessMD investors share common traits including:

1) They care a lot about the mission impact of the company;

2) They are long-term thinkers and understand the myriad barriers facing healthcare technology companies; and

3) They have patience;

[28:35] How Dr. Liu found strong investors and venture capital firms via well-developed relationships overtime;

[32:29] How investing is a numbers game that requires resilience, and why it is important to maintain long-term relationships with long-term players;

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