6 key aspects to attract investors in health projects
Strategies for raising capital! If you have to present your health project to potential investors, highlight these 6 points.
If you are involved in the world of healthcare entrepreneurship and you are looking for capital for your project, it is crucial to take into account aspects such as the added value of the technological solution, the medical need it addresses or its financing needs in order to attract the interest of investors and also to demonstrate its solidity and potential.
These were some of the critical points that Georgina Sorrosal, Innovation and Entrepreneurship Area Director at the Col·legi de Metges de Barcelona, wanted to highlight during the virtual meeting of the TECSAM Network’s 21st Breakfast&Learn, held together with Daniel Oliver, director of Capital Cell, and aimed at learning about strategies for attracting investment for startups or health projects.
Next, you will find the 6 key elements to consider in order to attract investors and make your proposal attractive:
1. Identify the unsolved medical need
First, a specific problem that has not yet been effectively addressed must be identified. This will capture the interest of both investors and the target audience.
2. Present an innovative technological solution
Explain in detail the project, solution or technology you are proposing and highlight the real value it brings to the healthcare sector. The key is to highlight how your proposal can make a difference.
3. Know the market and the competence
Conduct a comprehensive analysis of the target market and understand your competitors. This demonstrates an understanding of the business environment and also the ability to stand out in a competitive market.
4. Build a diverse and competitive team
Make sure you have a team composed of individuals with both technological and business profiles. Likewise, it is important that the team can evolve according to the business moment and the funding obtained, and grow as the project progresses. Finally, Georgina Sorrosal stressed the importance of using methods to attract and retain talent (incentive plan) from the beginning to create a sense of belonging and commitment among the members.
The speaker also highlighted some key profiles that a growing spin-off should include, such as: entrepreneur/CEO, principal investigator, mentor/accelerator, technical profile, business profile, scientific advisory board (SAB) and other finance, legal or regulatory profiles (the latter can be outsourced).
5. Define a development plan and the regulatory standards that apply
Establish a clear product development plan, along with a deep understanding of the regulations and standards that apply in the health sector.
6. Determine the funding needs for each stage
Financing needs depend on the specific objectives set by the project at each stage of its development. Being clear about this information will provide transparency and confidence to potential investors about how you will use the capital.
In this sense, both speakers discussed the financing options at each stage of development. In the initial phase (pre-seed and seed), they talked about Family, Friends and Fools (FFF), Shareholders Agreement (SHA), crowdfunding, venture capital (VC) and business angels (investment forums are a good place to meet them).
The session also emphasised the importance that research projects must exhaust all possible sources of funding before becoming a spin-off, in order to ensure a more mature development of the project before its introduction to the market.
Daniel Oliver also pointed out the importance of directing efforts as researchers in the field of health towards attracting funds from small investors rather than from large investment funds. This is due to the greater facilities and opportunities that the former tend to offer.
Did you miss the session or do you want to watch it again? All the keys to fundraising in the following video: