Alex Pattis

10 Key Factors for HealthTech and MedTech founders to consider in today's M&A market environment (Part 2) 6. Alignment with Value-Based Care (VBC) 🤝 Healthcare is shifting from fee-for-service to VBC. Companies that enable this transition (e.g., remote patient monitoring, population health, chronic disease management) are strategically valuable to payers and providers. Founder Focus: Frame your solution in terms of how it reduces costs and improves patient outcomes, directly supporting a VBC model. 7. Scalable Processes and Management Team Depth 👥 Buyers assess "key person risk." Over-reliance on the founder for key client relationships or daily operations raises concerns about post-acquisition sustainability. Founder Focus: Build a strong second-tier management team and document repeatable Standard Operating Procedures (SOPs). Prove the company can run and scale without the founders' constant involvement. 8. Interoperability and Data Monetization Strategy 🔗 The ability to seamlessly integrate with Electronic Health Records (EHRs) and other systems (interoperability) is crucial. Companies with clean, actionable data that can be ethically leveraged (monetization) command higher multiples. Founder Focus: Prioritise API development and integration capabilities. Demonstrate a clear, compliant strategy for how your data creates additional value. 9. Customer Concentration and Acquisition Costs (CAC) 🎯 High customer concentration (revenue dependent on one or two clients) signals a major risk to a buyer. Low Customer Acquisition Costs (CACs) are a key profitability driver. Founder Focus: Diversify your customer base to reduce concentration risk. Optimize your sales and marketing process to prove an efficient, scalable, and low CAC model. 10. Understanding Alternative Deal Structures 💰 To bridge valuation gaps between buyers and sellers, alternative structures are becoming common. These include earn-outs (additional payments based on future performance) and royalty/licensing agreements. Founder Focus: Be prepared to negotiate a portion of your deal value into an earn-out structure, especially if a buyer is cautious about future revenue projections. This shows confidence in your team and product's future performance. To discuss how Nelson Advisors can help your HealthTech or MedTech company, please email lloyd@nelsonadvisors.co.uk

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The Signal Every Investor Should Pay Attention To When leading Silicon Valley investors like Vijay Pande (formerly of a16z Bio + Health) and Zack Werner launch a new firm—VZVC—focused exclusively on AI in healthcare, it’s not a coincidence. It’s a signal. A signal that elite capital is doubling down on healthcare AI in 2025, that the market sees real scalability at the intersection of automation, intelligence, and patient impact, and that the next generation of value creation in healthcare will come from AI-enabled efficiency and insight. Mission 3A HealthTech sits precisely at this intersection — where technical innovation meets real-world execution. We believe there is no better investment opportunity than healthcare AI. The sector combines long-term demand stability with massive efficiency gaps — and AI is finally capable of bridging them. As investors chase the next wave, we’re already ahead of it: identifying, validating and investing in these cutting edge companies. We are partnering with surgeons and health systems, and commercializing solutions that drive measurable impact. #HealthcareAI #VentureCapital #Mission3A #DigitalHealth #AI #MedTech #Startups #HealthcareAI #DigitalHealth #MedTech #Mission3A #VentureCapital #AIHealthTech #HealthTechInvesting #ArtificialIntelligence #StartupFunding #FutureOfHealthcare Tempus AI insitro Freenome Stryker PathAI Apple Butterfly Network, Inc. Lyten Medtronic Orthofix Treace Medical Concepts, Inc. Forma.ai Smith+Nephew Vizai Engineering OWKIN Kevin Cordell Trey M. Matt Hostetler Greg Berlet Patrick Fisher https://lnkd.in/eSmCCf_E

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The business models that built digital health over the last decade won't look the same in the AI era. We’re moving from paying for access to software to paying for measurable outcomes powered by software. That shift could fundamentally change how digital health companies build, sell, and create value. I shared a few thoughts on this transition in my latest interview with LSI. 🎥 Watch the full discussion: https://lnkd.in/dfAsVCww Thank you to The Mullings Group, Ido Hadari and Caty Pearl for driving this important conversation. #DigitalHealth #AIinHealthcare #HealthTech #LSI #HealthTechVC Ran Goshen, Ofir Hazut, Saar liraz

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At Bread and Butter Ventures, we're in our 7th year of investing in digital health. I've been hearing a lot of feedback lately from both funds and founders alike that VC funding for tech-enabled care delivery is fewer and far between these days. I'm super bullish on tech-enabled care as a component of a digital health portfolio because I believe that true, lasting innovation will be driven by bottoms-up early stage innovation responding to top-down industry pain points, and that to innovate we must have distribution through the incumbent plumbing of the healthcare system - and that includes care at the center. Yes, the margins are lower than pure software, but the distribution network of healthcare is very different than pure B2B. We're super interested right now in: ✅ Applications of AI to in infrastructure and operations of health care systems, provider networks, health plans to reduce manual work and enable everyone to operate at their best and highest use ✅ Applications of AI to clinical decision support and ultimately care delivery ✅ Solutions that address population health and help with access to care in both rural and urban settings (both from a care & cost perpspective), cardiometabolic health, women's health (still wildly uninvested opportunities to serve half the population), eldercare ✅ Insurtech, fintech and the payments layer of healthcare We would love to connect with more co-investors at all stages (pre-seed, seed, later stage) who are actively investing in digital health and specifically at tech-enabled care solutions to drive the next generation of healthcare innovation. Please DM us or tag a firm/investor here!

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Great to have J. Thelander Consulting's private company compensation data featured in Halle Tecco, MPH, MBA and Carly Newhouse's latest article. CMOs are a hot job right now!

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