Archives for category: health tech

At first glance, investing in technology startups looks highly attractive. The best ones grow into billion dollar companies in amazingly short timeframes and fortunes are made by those that spot the winners. Even without betting on individual unicorns David Rose of New York Angels estimates an annualised IRR of 25% for angel investors. Not bad by any standards.

So where is the dilemma? The problem is that when you look to make your first investment all technology startups look high risk and of course they are. There is at least a 50% chance that the startup you are reviewing will fail and only 10% that it will be that billion dollar unicorn. It is only when you diversify the risk over at least half a dozen startups that things start to look more rosy.

I recommend that the first decision to make is whether to be an active or passive investor. You can choose either approach but your tactics will vary depending on which strategy you follow. To passively invest, you will need to follow others. Pick investors who you trust, investing in sectors that they understand. These are often HNW’s who have made their money from successfully selling or IPOing a company. Let them do the due diligence and set the term-sheet and invest alongside them.

If you choose to be an active investor, you should do a lot more research up-front. This kind of investment has to be fun and is often best driven by a passion. The tech startup sector is very diverse and it is rarely possible to pick a sector that has more potential that the next because everything moves so fast. If you are based in a city such as London, you can predict the sectors which will get the most support from Government and corporates. In the case of London it might be FinTech and FashTech. You might alternatively choose to bet on the future and take a look at sectors such as EdTech or HealthTech. You can also take a technology focused approach, looking to back emerging technologies such as Virtual Reality, Artificial Intelligence, Robotics or Big Data. Whatever choice you make, base it on research.

Active investors sometimes choose to invest in smaller portfolios. The reason for this is that it’s difficult to manage more than a few startups at once.

Finally, there is nothing wrong with taking a hybrid approach. This would involve investing in a small number of startups as the active lead and then build the rest of your portfolio by following other more active investors.

So the main tips to angel investors are;

  • Always diversify your investment across multiple investments
  • Only actively invest in what you understand
  • Follow other angels when you don’t fully understand a sector or technology

Blog by Paul Dowling — Co-Founder of Dreamstake the world’s first tech startup platform to match over 16,000 founders with the most appropriate investors using a unique startup rating system. This allows entrepreneurs and investors to monitor startup progress and inject capital and support when most needed. Startup founders create profiles on the platform and get curated introductions to investors. We are constantly looking for great early stage tech startups. Investors please contact [email protected]

We have also recently launched an exclusive tech angel investment club in partnership with The Hoxton. HoxTech Angels will run invitation only angel

About 6 months ago I heard a presentation given at Campus London by Daniel Kraft from Singularity University.  A similar presentation from him can be found as a Ted Talk.  The talk blew my mind away and opened it up to the amazing possibilities facing the medical world from the exponential growth of several technologies in parallel.  The combination of low-cost gene analysis, improved computerised bio-informatics, robotics and increased connectivity will revolutionise the way we interact with medicine.

The amazing growth and connectivity of technologies such as connected digital medical records, robotic surgery, nano-medicine and genomics will provide us with a health eco-system that will allow greater emphasis on preventative health and re-direct medical budgets on improving quality of life rather than focusing it on the last few years of a patients existence.

Health services the world over struggle to deal with a variety of problems; increasing cost, unfavourable demographics, access variability, fragmentation, waste and the slow adoption of technology.  Technology can have a positive impact in addressing all these issues.

The increasing power of the smartphone alone is providing a new and increasing range of innovations. It is already possible to test for STDs, blood sugar levels and many other symptoms using sensors or patches linked to smartphone apps. Graphene patches will be even smaller and cheaper.  We are seeing a massive increase in the adoption of quantifiable self solutions. The popularity of wearable wristbands and smart-watches allow us to monitor our health in realtime and take preventative actions. It will not be long before clothing will incorporate sensors that will monitor all aspects of our health and warn us of any problems.

Another area of huge change is in imaging, which is getting increasingly faster and provides far higher resolution. This enables improved diagnosis and supports the surgeon in decision making.  Advanced robotics also provide surgeons with the tools to conduct operations that would not previously be possible.  This can be combined with internet connectivity to allow sharing of information by surgeons during surgical procedures.  Technologies such as augmented reality and even motion detection have potential in medicine, for example in detecting or monitoring stroke victims.

Medical scientists are also carrying out extremely advanced research on devices that allow brain-computer interface as a means for helping quadriplegic patients to restore certain functions.  Artificial retinas will help restore sight and robotics are either replacing or augmenting limbs.

The reduced cost of the genome sampling to less than $100 will allow us to predict the likelihood of developing certain hereditary disorders , this combined with environmental data, and will allow us to take preventative actions.

In general, technology offers the possibility to bring a new approach to medicine that focus resources on prediction and prevention, bringing a higher level of personalisation and participation.  In so doing, technology will increasingly help to empower patients, enable physicians and enhance wellbeing.

Blog by Paul Dowling – Co-Founder of Dreamstake  the world’s first tech startup platform to match founders with the most appropriate investors using a unique startup rating system. This allows entrepreneurs and investors to monitor startup progress and inject capital and support when most needed. Startup founders can create profiles on the platform and get direct introductions to investors. We are constantly looking for great early stage tech startups. Investors please contact [email protected]

We have also recently launched an exclusive tech angel investment club in partnership with The Hoxton. HoxTech Angels will run invitation only angel investment evenings every month.