The post below was originally published on Venture Valkyrie.
In 1998 I was forming my first venture fund with a focus on healthcare IT and healthcare services. It was an interesting time to be undertaking such a mission. The Internet boom was in full swing and the money was flooding away from healthcare. Few were yet talking about rising healthcare costs the disastrous state of healthcare errors, or the need to share data to improve the management of chronic disease, much less the operating efficiency of payers or providers. One seasoned VC, whose firm was in the process of laying off all of its healthcare partners in 1998, told me that my firm’s strategy was “quaint.” In other words, maybe I should consider a career in plastics.
Fast forward 17 years and the times have changed, to say the least. Everyone is talking about the fiscal crisis wrought by healthcare cost escalation. Even at cocktail parties you can hear people discussing mishaps they have experienced while colliding with our dysfunctional healthcare industry. And in a particular twist, healthcare IT, or its new more hipster moniker, digital health, has become THE place to invest for many. (more…)