Health Care Venture Capital Basics

Knowing health care venture capital basics can maximize your chances for funding success

Gone are the days when health care venture capital was relatively easy to procure. In today's tight economic market, health care venture capital firms are demanding, and expect quick returns on their investments.

This article will provide you with an overview of healthcare venture capital basics, so you know who to approach for health care finance funding and the best way to go about doing so. When seeking out healthcare venture capital, consider the following suggestions:

1. Know who the players are in the healthcare venture capital field.

2. Look for angles that are currently appealing to health venture capital firms.

3. Target VC firms that award funding in areas related to your business plan.

 

Compile a list of healthcare venture capital firms to help narrow your focus

If your company needs VC from a healthcare firm, you can increase your chances at receiving funding by knowing where to target your efforts. Compiling a list of groups that specialize in providing venture capital for healthcare is a great place to start.
Try: Canon Communications' Medicaldevicelink website includes an extensive list of venture capital firms active in the medical device field. VentureDeal allows you to search for venture capital firms by amount, location, industry focus and even funding history. They are offering a 14-day free trial.

Look for current angles appealing to healthcare venture capital firms

Venture Capital firms are not unlike other industries in that they are influenced by current trends. Knowing what the trends are in the healthcare industry, and which trends are appealing to venture capitalists in healthcare, will allow you to adjust your business plan and increase your chances for being awarded funding.
Try: Capital Broadcasting's Local Tech Wire website includes an article on the venture capital outlook that quotes several VC partner opinions. Regarding healthcare VC, one partner is of the opinion that personalized medicine based on genetic advances could be an area VC funders will be considering. The San Francisco Chronicle's online article, published by Hearst, discusses the venture capital outlook for the coming year. The article corroborates the idea that personalized medicine is an up and coming trend and may be a bright spot on an otherwise bleak outlook for venture capitalists and those seeking funding.

Target health venture capital firms whose aim is to fund businesses like yours

Every healthcare venture capital firm focuses on a specific area of the health care industry. In addition, the range of funding amounts can vary drastically from firm to firm. Make sure your business plan is aligned with the goals and funding amounts of the venture capital sources you approach.
Try: Versant Venture Management invests primarily in early stage companies that focus on medical devices, life sciences, health care services and health care IT. Health Capital Investors funds doctors, medical practices, nursing homes, hospitals, home health care companies and rehab clinics with funding needs between $100,000 and $100 million.

 

• Do your homework when it comes to the bottom line financial figures of your healthcare venture capital business plan. It is essential you be confident that your plan can deliver what it promises and that your facts and figures can back this up. Remember that investment firms are looking for quick returns on investment and they will pour over your financials to assure themselves your idea is worth the investment risk.

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