(6 Total References)
At the StartUp Health Festival, panelists ...
At the StartUp Health Festival, panelists Ruchita Sinha of GE Ventures, Casey Silver of Arsenal Venture Partners, Matt Karls of Cambia Health Solutions, and Asif Khan of Caremerge, join host Jay Sullivan of DLA Piper to discuss the capital raising process and the challenges and benefits of bringing in diverse investors to create a billion dollar business.
[1:27] Katya Hancock: The panel is going to be moderated by Jay Sullivan, a partner at DLA Piper, one of our great event sponsors.
, if you want to come on up.
hand it over to Jay
, to kick off the panel.
[2:00] Jay Sullivan
: Excellent, thank you very much.
[2:06] Jay: We're thrilled to be here from DLA Piper, I'm a Partner in our corporate group, we do a lot of work with healthcare companies and investors of various shapes and sizes.
great pleasure to have this panel here today and to be part of the StartUp Health Festival here at J.P. Morgan week, in San Francisco.
: The thesis for this discussion is, thinking back several months, we were trying to decide what we wanted to talk about.
Before I even knew the tagline for the conference, it aligned
very well, it's "Where moonshots begin and transformation happens."
: It's all about bringing together a great set of partners to build incredible digital healthcare companies.
We believe, ideally and otherwise, that if you have a great, strong emerging
digital health company, and you combine blue chip financial investors along with creative and bold strategic partners and investors, then really great things can happen.
: It's not just, to echo Steve and Unity.
: For the investors and partners, I'd love to hear what brought you to StartUp Health
, and then we'll get into details with Caremerge
There's just one other thought.
When we were speaking a couple of months back about the panel, I know you spoke about this virality.
: One concept that really took hold with me was that every one of us in this room are tethered to devices non stop, and we all have very busy lives.
I think that's something that's going to come up again and again, is the team is key.
: I like the dynamic here that each of the investors that are now backing you want to be first to the table, and each other own story how they were, but I imagine there were
others in the hunt.
It was a successful company when you were in the capital-raising process.
One, how did you manage that process, and what really let these folks rise to the top?
: I think the key thing was these organizations that came in the round.
It was oversubscribed round.
It was a small amount, but it was an oversubscribed round, and these companies
that came in, they understand the problem.
: Insurance, GE Healthcare, Department of Defense
, and we also have Ziegler, LinkAge, and Formation Capital, which are really focused on senior care.
They're not here, but all
these guys, all these companies, they really experienced it every single day, and they could understand what we're trying to do, and what we're trying to figure out.
: I think those were some of the reasons why we gravitated towards each other, all of us, and it kind of worked out really amazingly at the end.
: That's great.
: Asif was very, very focused and saying, "I'd love to talk further, but we're really right on the edge of getting something done, so just please leave me alone, and let's move
: It was a very polite…It was actually the right answer from the lawyer's point of view.
"Get your deal done, and then talk later."
: With that in mind, it's still a challenging process, even with a very amicable group of investors and people who want to back you.
: I'm sure you had a preconceived notion of how this would happen once the investment was done, and you would start to build your network collectively, but have there been any
: Thank you.
: What was the time to close?
What's the relative timing between each investment?
Was it a short period of months, weeks, days?
: How about that allocation division?
Was that a hot company like Caremerge and a lot of investor interest that can
be a challenge I think for everyone to balance?
[25:02] Ruchita: Oh, it got ugly.
: Yeah. [laughs] Well, you've moved past it and everyone's up here today, because you're all in, but I'm sure there may be others who may have a different opinion.
: But I had a question for Arsenal
: So we sit here in San Francisco during J.P. Morgan week at Startup Health Festival.
: Asif, for you, picking up on Ruchita's comment.
: What is the earliest that any of you will back a company?
: I'm sure that everything has gone incredibly smoothly and swimmingly from the very first day you launched the company.
But just in case it hasn't, were there any significant
pivots you've had to manage through within the business or as you go forward?
: Then also from the investor perspective, both within Caremerge
and beyond, I'd love to hear whether that sort of fundamental pivot is something you expect in an investment
I think in any investor group you may have, you may come to the table with different expectations or horizons for investment I think.
Everyone in this room
likely understands that the sales cycle for healthcare is often more challenging than a lot of other sectors that investors back in tech sector or otherwise.
: I expect that everyone on this panel came to this investment and this business with that understanding, but how do you manage the different expectations amongst the group?
: For the investors, I think one of the great opportunities and benefits of having a partnership like this here is that there are channels that can be opened up through
the investor base into the payer systems.
Is that something you're seeing more of?
: Are you seeing generally a greater number of companies looking to find partnerships like these amongst financial and strategic backers?
Is the opening up of the customer
: How many investors do you think you've come across in the process of your fundraising?
: In terms of meetings or discussions you've had along the way.
: So, with that, we're going to wrap, and I would like to thank the panel, and StartUp Health
and, hopefully, you can track us all down a little bit afterwards if you'd
Spring Institute 2014
Jeremy Sullivan, DLA Piper LLP
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