Digital health startups face a crowded, competitive funding landscape and must navigate a rapidly changing investment climate. Many struggle to capture investor interest, often due to unclear messaging, outdated funding assumptions, or limited understanding of healthcare and pharma dynamics.
To stand out, startups need to align with what today’s investors are really looking for. In a recent PharmStars Graduate School session, “Investing in Digital Health: What Startups Should Know Now,” a panel of experienced investors shared practical advice on how startups can sharpen their approach — from refining their pitch and demonstrating ROI to understanding pharma workflows and the growing role of AI.
Our investor panel included Sooah Cho, Partner, Health & PharmaTech AI, SignalFire, Lee Shapiro, Managing Partner, 7wire Ventures, and Cedric Odje, Investment Associate, Debiopharm. Each seasoned investor on the panel offered practical, thoughtful advice for digital health startups during our session. Below, we summarize some of the valuable takeaways each shared. Their insightful perspectives resonated with the large, international group of PharmStars Alumni startups that attended.
Sooah Cho – Partner, Health & PharmaTech AI, SignalFire
- Make it easy for investors: Sooah emphasized the importance of saving investors’ time. Along with your pitch deck, include a clear and concise written summary. Investors will often create one themselves — providing it upfront helps ensure your message is understood the way you intend.
- Adapt to shifting milestones: The digital health investment landscape is rapidly evolving. Sooah advised founders not to get fixated on past Series A or B funding criteria milestones. Milestones from even a year ago may no longer apply. Be aware of the current market dynamics.
- Recognize the AI transformation: Healthcare is experiencing a fundamental shift with advancements in artificial intelligence. Investors are keenly watching how startups leverage AI to create truly impactful solutions.
Lee Shapiro – Managing Partner at 7wire Ventures
- Tell a compelling story: It's not enough to just build a “cool app.” Lee emphasized that founders must be able to tell a great story. It is “absolutely critical” to refine and perfect the narrative so it’s concise and compelling.
- Research your audience: Lee noted that many pitching startups seem to have done no research on the firm, its investors, or past investment recipients. With the internet, there’s no excuse for entering a meeting cold.
- Know your numbers: Startups must articulate a compelling Return on Investment (ROI). Lee highlighted that showing cost savings or efficiency gains is crucial for attracting serious investment.
Cedric Odje – Senior Investment Associate at Debiopharm
- Deliver pharma solutions that increase efficiency: Cedric highlighted the investor focus on solutions that tackle inefficiencies within pharma. This includes technologies that enhance data utilization and significantly reduce the duration of clinical trials.
- Cultivate a team that understands pharma: Beyond technical expertise, Cedric stressed the importance of a team with deep knowledge of the pharmaceutical industry. This includes understanding the pharma buyer’s journey and knowing how to effectively collaborate with biopharma companies.
- Articulate a path to adoption and integration: Your most important vision, according to Cedric, is the ability to integrate with existing workflows. Startups must clearly articulate their path to adoption, including regulatory considerations, and demonstrate exactly how their solution will fit seamlessly into the existing healthcare system.
In summary, our panel of investors advised digital health startups to be clear, strategic, and market-aware. Sooah Cho emphasized saving investors’ time, adapting to evolving funding milestones, and leveraging AI effectively. Lee Shapiro highlighted the importance of storytelling, doing investor homework, and demonstrating ROI. Cedric Odje stressed building solutions that improve pharma efficiency, having a pharma-fluent team, and showing a clear path to adoption. Together, their insights underscored the need for startups to be well-prepared, well-informed, and aligned with current industry dynamics.
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