Eavesdropping online

Overheard: Experts share advice on investing in health tech amid the pandemic

Here's how the health tech investing industry has had to rethink investing amid a global pandemic. Photo by Dwight C. Andrews/Greater Houston Convention and Visitors Bureau

The coronavirus pandemic has upset countless industries, but if you zoom in on health tech you'll find a mix of opportunities and challenges for both health tech startups and investors.

On a virtual panel hosted by TMC Innovation and Ignite Healthcare Network, four female investors or founders discussed the health tech startup landscape. From advice for getting the attention of investors amid COVID-19 to inequities in health care and innovation, here's what the panel covered.

“I never thought I’d make an investment without meeting the founder face-to-face and visiting their site. The way I got comfortable with it was the opportunity was referred to me — it was a warm lead.”

— Karen Kerr, lead partner at Portfolia Rising America Fund. Kerr says those warm leads are more important now than ever, as is sharing a network.

“The first thing you need to do is understand our fund — or whatever fund you’re trying to go after — and pitch in a way that’s personal. You have to stand out from the beginning.”

— Kyra Doolan, managing director of Texas Halo Fund, says on reaching out to investors. She adds that she looks for a strong team, an innovative solution, a market need, and the terms of the deal. Meanwhile, red flags include if a startup says it has no competition, has unreasonable projections, is led by entrepreneurs who think they know everything, has an unwillingness to be upfront about COVID challenges, and doesn't have enough money in the bank.

“It’s important for companies to be upfront about the problems they’re facing — we all know these problems exist. Addressing that head-on with investors is a good way to go because having trust in a company you’re investing in is important.”

— Doolan continues on the importance of transparency between startup and investor.

“I’m looking for great entrepreneurs that are high integrity people. I’m looking to see that they really understand the industries they are in.”

— Kerr says on what she looks for in a founder. She adds that she tries to understand how they think and the advantages and disadvantages of their leadership are.

“You have to have the art of persuasion. You have this dream and vision — and there may not be anything there yet — but you need to be able to take people on this journey with you.”

— Damayanti Dipayana, CEO and co-founder of Manatee, a member of TMCx's 2020 cohort. She adds, representing the entrepreneur side of the table, that you really have to know yourself and your shortcomings.

“Any investor will look at it like if you can’t get the right people around and sell it to them, how are you going to uproot an industry.”

— Dipayana expands on the importance of growing your team and being persuasive.

“I think the pandemic has certainly shone a bright light on the inequities that exists, so solutions to these challenges are interesting things to think through.”

— Kerr says adding that the first investment from the Rising America Fund was into a fintech startup that serves underbanked communities.

“We’re seeing lower valuations maybe than we would have before this because the effects of this are going to go on for a long time, I would guess. Even when COVID starts to come down, the economic downturn is still going to exist.”

— Doolan says on where investment is at amid the pandemic.

“Ultimately if you want to have real bargaining power over your valuation, find other people who are interested.”

— Dipayana adds to the conversation about valuations. "If only one person interested, they are going to drive the valuation."

“Picking the right partners is such an important decision — don’t take that lightly just because they have money.”

—Chantell Preston, lead partner at Portfolio, co-founder and CEO of Facilities Management Group, and moderator of the event.

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Building Houston

 
 

Meet MIA — Houston Methodist's new voice technology assistant. Photo via Getty Images

Hey, MIA. Start surgery.

These are the words Houston doctors are learning to say in the operating rooms, thanks to a first-of-its-kind voice technology developed by the Houston Methodist's Center for Innovation in collaboration with Amazon Web Services. In the same way we use programs like Alexa or Siri to make our everyday tasks easier, the Methodist Intelligent Automation, or MIA, is allowing medical professionals to improve the way they interact both with technology and patients alike.

"There's been a push in the industry for a long time that people sitting behind computers and typing and staring at a computer screen is inadequate," says Houston Methodist Chief Innovation Officer Roberta Schwartz. "There's been a desire to return people back to each other rather than physicians and look at a screen and patients look at a doctor looking at a screen."

Currently in its pilot phase, MIA is working to do just that through two key functions that shift the way medical professionals work in what Schwartz calls the "era of electronic medical records."

The first is through operating room voice commands. Here medical professionals can run through a series or checklists and initiate important actions, such as starting timers or reviewing time of anesthesia, through voice instead of by typing or clicking, which can become cumbersome during lengthy and highly detailed surgeries. Information is displayed on a large 80-inch TV in the operating suite and following surgery all of the data captured is imported into the traditional EMR program. The technology has been prototyped in two Houston Methodist O.R. suites so far and the hub aims to trial it in a simulation surgery by the end of the year.

Additionally, the hub is developing ambient listening technology to be used in a clinical setting with the same goal. Houston Methodist and AWS have partnered with Dallas-based Pariveda to create specialized hardware that (after gaining patient permission) will listen into doctor-patient conversations, transcribe the interaction, and draft a note that is then coded and imported directly into the EMR.

"For EMR the feedback is that it's clunky, it's click-heavy, it's very task oriented," says Josh Sol, who leads digital and clinical innovation for Houston Methodist. "Our goal with the Center for Innovation and this technology hub is to really transform that terminology and bring back this collaboration and the patient-physician relationship by removing the computer but still capturing all the pertinent information."

The ambient listening technology is further off and is currently in user acceptance testing with clinicians.

"They've had some great feedback, whether it's changing how the note is created, changing the look and feel of the application itself," Sol adds. "All feedback is good feedback at this point. So we've taken it in, we prioritize the work, and we continue to improve the application."

And the hub doesn't plan to stop there. Schwartz and Sol agree that the next step for this type of medical technology will be patient facing. They envision that in the near future appointment or surgery prep can be done through Alexa push notifications and medication reminders or follow up assessments could be done via voice applications.

"It's all going to be of tremendous value and it's coming," Schwartz says. "We may be taking the first baby steps, but each one of these voice technologies for our patients is out there on the horizon."

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