What Metrics Do Overseas Investors Care About in Digital Health IPOs?

The wave of overseas Internet healthcare is equally fierce, yet there is no shortage of divergent opinions. VCBeat has translated the following article by Charu Raghu, Special Project Partner at Rock Health, offering readers insight into how foreign investors on the front lines perceive Internet healthcare.


Not long ago, we co-hosted the Third Internet Healthcare Investor Summit with two partner companies. During the summit, a large number of investors interested in internet healthcare attended the event. Below are some impressive quotes from the past few days for our readers.

Cautious Faction

David Brailer of Health Evolution Partners stated, “Although data is as essential as air, it is impossible to sell it by the ounce.” While Health Evolution Partners has amassed an increasing volume of data, it has never monetized this information.

Optimists

Bob Kocher of Vebrock stated, “The situation is not as dire as it once was. As technology advances, video capabilities have become more sophisticated; by simply connecting to a hospital’s network, one can engage in video consultations with virtually no wait time. Therefore, if everyone possesses a smartphone, the internet healthcare market will experience boundless expansion.” Currently, Kocher’s company is working to understand why internet healthcare has gained such significant traction.

“Investors now need to remain optimistic about all four Ps: Patients, Physicians, Providers, and Payers,” said Casper de Clercq of Norwest Venture Partners. The firm is currently divided on whether the digital health sector can sustain its high valuations.

Pragmatists

Janet Widmann, Executive Vice President of Blue Shield of California, said, “User experiences have shown us that browsing and purchasing are closely tied to our needs, helping us care for our health by being there for us when we need it most.”

“Differentiated technology models are now critically important!” said Navtej Bhullar of Goldman Sachs, adding that the firm is currently evaluating key investors from a fundraising perspective.

“Now is not the time to debate whether internet healthcare will disrupt existing lifestyles; what needs more urgent discussion is whether internet healthcare can be realized!” said Jack Young of dRX. His company is currently researching the unique business strategies that distinguish internet healthcare companies from other enterprises.

Malay Gandhi of Rock Health recently conducted an interactive survey on the current state of digital health funds. To gauge participants’ perspectives on the outlook for digital health, live polling was carried out. The voting results are presented below.

The sales cycle is the primary concern of investors in internet healthcare.



Most investors believe that the value of internet healthcare companies is overestimated.



Of course, most importantly, investors remain largely optimistic about internet healthcare.




Compiled by: Zhou Changling

Translated and edited by VCBeat. Please cite the source when reprinting.