Ty Danco - Creating Effective Business Partnerships to Accelerate Innovation

“Like X for Y”

HealthTech and IT

Ty Danco

ty.danco@techstars.com

802-922-2916

Investors Think in Categories

Need to provide a mental model to make

sense of any new startup

“Good artists copy—great artists steal.”

Models for HealthIT

Investors Think in Categories

Need to provide a mental model to make

sense of any new startup

“Good artists copy—great artists steal.”

Marketplaces

IT Equivalent: AirBnB; Uber

HIT Examples: ZocDoc; Careport Health

Services: Matchmaking; Scheduling; Billing

Business Model: Percentage of Sales

Key Factors: Vetting/”QC”; Access; Speed

Network

IT Equivalent: LinkedIn; Facebook

HIT Examples: Doximity; Figure1,

TheRounds

Services: Facilitating Connections

Business Model: Ads; LeadGen

Key Factors: Scale; Membership

Search/Discovery

IT Equivalent: Google; AppStore; Shazam

HIT Examples: MayoClinic; Dr. Koop;

Medivizor

Services: Answers/Diagnostics

Business Model: Targeted Ads; LeadGen

Key Factors: Accuracy; Speed

Recordkeeping/Storage

IT Equivalent: Mint

HIT Examples: EPIC (RIP: GoogleHealth,

MS HealthVault)

Services: Connecting to APIs; Data

Retrieval

Business Model: Subscription

Key Factors: Access; UI; Connectedness;

Cloud Computing

IT Equivalent: Amazon AWS; Palantir

HIT Examples: Drug Discovery IT

Services: Big Data

Business Model: Subscription

Key Factors: Quality of Data; Algorithms;

ML; Robustness

Publishing

IT Equivalent: Medium; Twitter; Facebook;

Meerkat

HIT Examples: Public Library of Science;

PLoS Medicine

Services: Amplification of Message

Business Model: Two-Sided Market?? Ads

Key Factors: Info wants to be free

Quantified Self

IT Equivalent: Runkeeper; Fitbit; Withings

HIT Examples: 23&Me; Ginger.io

Services: Data capture

Business Model: Razor or Blades?

Key Factors: Passivity; Value of Data

Takeaways Investors seek to categorize; they see 1000s of

pitchers a year

“Pattern Recognition” is the fallback for most investors

Lessons learned: Business model must be appropriate for use case

Must be scalable

Must be 10x better than alternatives in some way

Great artists steal—look for solutions across verticals

Focus on solving the problem, not inventing a new business model