Posts Tagged ‘venture capital’

A “Real Biz Model 2 Win” or “Merely a Bubble” for Digital Health?

April 9th, 2013
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There’s been discussion recently about a lack of life science venture capital (VC) enthusiasm for emerging digital health companies. I happen to feel that this concern, if you will, is misplaced. I engaged industry and opinion leaders on this subject plus have my own thoughts on the digital health funding environment.
In his latest article in Forbes, contributor David Shaywitz characterizes life science venture capitalists as just “kicking tires” on potential digital health investments, citing fears from prominent investor Nimesh Shah that innovations in digital health are “merely a bubble,” and that these firms lack a “real biz model.”
Shaywitz bases his position on quotes from venture capital executives, but also from the $1.4 billion that was invested in digital health last year, which he says is a fraction of all the life science VC money available. He responded to my post in the Digital Health LinkedIn group that this “reflects the uncertainty that many investors feel regarding whether viable business models will emerge.”
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