Where can I find money?

Young entrepreneurs are defined by their fresh, exciting ideas and passionate drive to succeed. Most, however, lack money and the experience and connections to turn their concepts into viable businesses. So how do young startups land funding? The answer seems to be: any which way they can.

Kauffmann has published a series of ebooks featuring practical advice from healthcare entrepreneurs. The one posted bellow includes insights on early-stage fundraising based on the pitfalls, options and the feedback of experienced entrepreneurs in the field.

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How much money does your startup cost?

How do you measure the value of a company? Especially, your company, the one you started just a few weeks ago. How do you determine its value? This is the question that will resonate in your brain over and over again when looking for funds for your startup. The following infographic will help you address the valuation of your company from its early stages:

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Several factors influence how much money can you ask an investor if you are negotiating a share of the company:

Traction: The most important aspect to show to an investor. The higher the number of users of the platform, more money you can ask.

Reputation: Entrepreneurs with prior exits in general also tend to get higher valuations.

Revenues: Are more important for the business-to-business startups than consumer startups. Revenues make the company easier to value.

Distribution Channel: Even though your product might be in very early stages, you might already have a distribution channel for it.

Hotness of industry. Investors travel in packs. If something is hot, they may pay a premium

If you want to delve deeper on additional tricks to valuate your startup at different stages read the article here for useful tips.

Pirate3D achieves $100,000 goal in 10 minutes on Kickstarter

In our latest post we mentioned the crowd-funding campaign Moebio’s Advisory Board member Neo Kok Beng at Singapore, had launched to build the most affordable 3D printer for everyday consumer use.

In ten minutes, Pirate3D Inc, the start-up that is going to develop the printer, raised its funding goal of $100,000 on its Kickstarter page. The Buccaneer®, a sleek aluminum and acrylic encased 3D printer, attracted 298 backers to reach its funding goal.

Pirate3D’s product has attracted widespread attention with its affordable price, stylish design, and promised ease-of-use. Priced at $347, is a 3D printer designed with ease-of-use and aesthetics in mind. The Buccaneer® comes fully assembled and is meant to be set up with ease and printing within minutes of unboxing.

Aside from hardware, the Pirate3D team is developing apps that work together with their 3D printer. The device is designed to work with mobile devices in tandem with cloud architecture. The first batch of Buccaneers will ship in December 2013.

mHealth in a mWorld

Mobile technologies are one of the fastest growing markets in the world. The latest and greatest in mobile technology was displayed last February at Barcelona’s Mobile World Congress. Healthcare, education, urban planning and other sectors can greatly benefit from mobile technology and a recent report out from the GSMA and PricewaterhouseCoopers gives a snapshot of how mobile technology could save money, increase opportunities and enhance health and safety in the coming years.

According to it, in Sub-Saharan Africa, one million lives could be saved over the next five years with mobile health initiatives that help patients stick to their treatment plans and access information, as well as aid workers in monitoring the availability of medication and follow treatment guidelines. For example the Mobile Alliance for Maternal Action enables health care workers and pregnant women to share health information via SMS in South Africa helps HIV patients and healthcare workers comply with Antiretroviral Therapy programs, cutting missed appointment rates from 27% to 4%.

In developed countries, mobile health or mHealth could also lead to positive outcomes. In 2017, it could cut health care costs by more than $400 billion in four ways:

As telemedicine grows mobile-based services could become more common in helping with immediate care. The GSMA-PwC report estimates that mobile-based care for patients with sudden health incidents could reduce primary and emergency care visits by 10%. Already, companies like Sherpaa and Ringadoc let patients reach physicians 24/7 by phone, text or email.

In non-emergency situations, mobile technology could also play a role in helping doctors keep tabs on elderly or recently discharged patients remotely. With Sotera Wireless, for example, physicians can monitor patients’ blood pressure, heart rate and other indicators through a flip-phone-sized device worn on a patient’s wrist. GSMA-PwC’s report estimates that remote monitoring technology could lead to elderly care savings of up to 25% and improve patients’ quality of life.

As more hospitals use the electronic medical records (EMR), patient information will increasingly be captured and accessed from mobile devices. PatientSafe, for example, lets doctors and nurses log patient data and manage other workflow tasks from an iPod Touch. Mobile access to EMRs could lower the administrative burden on hospitals by 20 to 30% the report says.

Finally, the old SMS could also play a major role in saving money and improving patient care. Appointment reminder services, like that offered by Kaiser Permanente, have been shown to reduce costs and boost patient attendance. Companies like AllazoHealth and AdhereTech use SMS to remind patients to take their medication after sensors or algorithms note when a patient hasn’t taken medication or is likely to skip it.

There is a mobile healthcare revolution taking place around the world. A number of organizations and mobile technology industries are now sponsoring projects to explore new mHealth, applications.

If you are an entrepreneur already developing (or expect to develop) a mHealth app and intend to sell it in the US market you should have a look to the report FDA 101: A Digital Guide to the FDA for Digital Health Entrepreneurs. Released on March 25 by the digital health accelerator Rock Health, the report helps digital innovators to navigate the Food and Drug Agency’s regulations and premarket requirements around medical devices. It also explains when a mobile health app would be classified as a medical device by the FDA and would require a clearance.

According to the FDA 101 report, mobile health apps will be considered medical devices if they serve as implants, implements, instruments or in vitro reagents used in the diagnosis of a disease, or in the cure, mitigation, treatment or prevention of a disease or serve as an accessory in one of those functions.

The report also recommends entrepreneurs to hire an advisor to make their company’s methods more appropriate and fitted to FDA’s guidelines. Finally, it includes quotes of digital health entrepreneurs that have successfully navigated the process offering pointers and best practices to startups.

The mobile health space is booming thanks to an unstoppable flow of money into it. In 2013 first quarter 37 deals valued at $365M have been signed. That is 35% higher than the same period of last year, showing that 2013 will be another record year for the digital health industry.

Lessons Learned:

  • Over the past few years mHealth has transitioned from novel startups to a global industry.
  • Among the many factors that are affecting the transformation of the health industry, the growing ubiquity of cell phones, smartphones and mobile devices is at the top.
  • Technology is bringing change to every piece of the health industry: wellness, fitness, healthcare and medicine.
  • Many entrepreneurs and startups are seeing the opportunity in mobile health technologies and want to get in on the game, but many are not aware of how to develop their apps, devices or services so that they are in line with the FDA’s regulations. A recent report from Rock Health startup incubator provides them the guidelines to succeed.