We support the next generation of health entrepreneurs with grants, office space, operational support and mentorship. Rock Health partners include Aberdare Ventures, Accel Partners, California HealthCare Foundation, Fenwick & West, Harvard Medical School, Mayo Clinic, Microsoft, Mohr Davidow Ventures, NEA, Nike, P&G, Qualcomm, Quest Diagnostics, Silicon Valley Bank and UCSF. For more information, visit rockhealth.com About i REPORT Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nunc sed odio nulla. Aenean enim nunc, posuere quis semper nec, fringilla ut nisl. Suspendisse nec imperdiet mauris. Ut posuere, massa vitae dignissim vehicula, velit quam rhoncus arcu, vitae auctor elit sapien vel lorem. Nullam quis purus massa. Ut sit amet risus nisi. Nullam quis purus massa. Ut sit amet risus nisi. Nullam quis purus massa. Ut sit amet risus nisi. Nullam quis purus massa. Ut sit amet risus nisi. Produced b Christina Chang M. Jackson Wilkinson Halle Tecco Leslie Ziegler @changcsc @lesliejz @whafro @halletecco
out the same forms or information multiple times. have had difficulty obtaining their own health information (such as labs or records). have had a test or procedure repeated due to inaccessible information during a visit. have registered for a program or purchased a product that did not meet their needs. have required medical treatment because they could not access preventative care. have received an incorrect prescription or one that reacted with a current medication. IT IMPACTS PATIENTS and it’s not just a money problem:
patient compliance Improving physician communication Communicating with patients more efficiently SPECIALISTS PRIMARY CARE doctors’ biggest obstacles HAVE TECHNOLOGY SOLUTIONS
on certain digital health technology products $4 Billion: health-related video games $700 Million: mobile health applications $8.9 Billion: resources rating MDs & hospitals 25% 50% Age 18 25 35 45 55 65 25% 50% Age 18 25 35 45 55 65 25% 50% Age 18 25 35 45 55 65 + + + Willingness by age group: S ...
Higher willingness to pay Greater lifetime value of customers Longer sales cycles Requires gatekeeper approval or systems integration Shorter sales cycle Quicker product iterations and user feedback Crowded landscape Lower willingness to pay
have no health division. 24% are traditional health care companies. 22% are Retailers: using deep customer access to serve new health care markets. 14% are Connectors: using data to tighten the patient-doctor relationship. 14% 2% are Fixers: attacking dysfunctional parts of the system to reduce waste. are Implementers: working across traditional sectors to integrate healthcare.
companies: consumers’ willingness to pay: what matters: “Sales cycles are obviously a big concern. It could take eighteen to twenty-four months to convert a new customer, and that’s funding that isn’t generating value quickly. “Consumers are financially on the hook for healthcare costs more than in the past, so I imagine consumers will be willing to pay more going forward. “We don’t know if consumers or payers or anyone else will pay, but if we know that it’s engaging consumers, that’s what matters. “...to be able to reduce costs, get sustained engagement, and ideally to demonstrate improved outcomes. That’s the winning combination.
“I’d rather invest in a really good team with a mediocre idea than in a mediocre team with a really good idea. The good team will figure it out and change, but the mediocre team will have a harder time. “To get good customer acquisition and to scale and reach people more quickly with less money, the product has to be really good. “A lot of times you have a CIO who is buying technology and pushing it down, and that’s a headache. They don’t necessarily know what the doctor wants. This product-market fit that has been important in consumer businesses is starting to find its way into healthcare. They want to use stuff that is intuitive and works and makes them more efficient and transparent.
investing in digital health: “Do you have a pilot? Is the pilot paid? What kinds of engagement are you getting? How many more pilots do you have set up? What’s in the pipeline? If you’ve been piloting for six months, can you show uptake, engagement, and early results? “It’s less about monetization early on and more about downloads, engagement, and retention... that’s what we’re really interested in as far as proving the utility of the product. “Sometimes it’s revenue and sometimes it’s usage, with the belief that revenue can come. Missy Krasner Morgenthaler Ventures – EIR
you’re designing for a VP of Engagement at some insurance company, his or her needs will be very idiosyncratic and designed for corporate policy, not for the end user. If you get a better product that’s well-designed, you’ll get better health outcomes. Going direct to consumer is difficult too...but at least there isn’t this overlay of nonmarket complexity. “ “The benefits of being B2C are that you bypass this huge, antiquated, enterprise-like sales cycle... Why do that when you could actually just go to the market and get really fast data, tailor your product, and let the market speak? “There has never been an opportunity like now to sell healthcare services directly to consumers. [B2C companies] do have much faster iteration cycles, and I thinky ou get a better product at the end of the day.
the future: “Monetization isn’t what’s most important to where we are today. We’re very focused on growth and engagement – growing our user base, our engagement levels, our menu of different applications. “It’s much harder to get massive scale than it is to figure out how to make money. We had to show traction and sell our vision and convince investors that we’re the team to do it. “We think there are interesting opportunities with brands, wellness platforms, insurance companies, doctors. Ultimately, these worlds are going to converge, but it will take a while, and right now we’re not concerned about the ‘how.’