Navigating the Challenging Climate of Health Technology Funding - MedCity News - Latest Global News

Navigating the Challenging Climate of Health Technology Funding – MedCity News

The healthtech space is evolving rapidly, and the climate for funding remains challenging at best. For organizations seeking capital, how and where they share their story can be a critical strategic endeavor in attracting investment.

The way your company is perceived from the outside can make all the difference in your funding search. When it comes to external perception, many executives first think of basic assets like the company website and investor pitch deck. These are important tools for telling your company’s story and soliciting investor support – but they are not enough on their own.

Attract potential investors – and the right ones Type of investors – getting them to notice and be interested in your company, not to mention attend a meeting, requires a solid strategy that includes:

  • Own your story. Know who you are as a company and what outcome you want to achieve. Every company has a story to tell, but not every company creates a narrative that captures the attention and interest of the type of investors it wants to attract. Strategic investors are looking for something different than financial investors, and the differences in what might grab their attention are often subtle. Communicate your story in a way that clearly and succinctly conveys value, stands out from the competition, and inspires trust with your key audiences.
  • Building a good reputation. People invest in people, especially in the early stages of a company, so building a positive reputation is crucial. Earned opportunities like strategic media placements, analyst interviews, speaking engagements, and awards do what other disciplines cannot. They get you coveted endorsements from journalists, experts, and industry associations that your audiences know and trust. With strong, strategic messaging, your leaders can build a reputation as innovators and visionaries in a market, perhaps even before the company has the size or influence to dominate it.
  • Create credibility. Just as customer reviews are a key factor in consumer trust, your customer success stories build credibility that can’t be bought. As part of the storytelling process, mine your customer base for compelling results, data, and anecdotes – even if your partnerships are still in the early stages. Then use those successes to demonstrate the invaluable trust actual buyers have in your solutions. For investors, this is important evidence that shows not only where your company is now, but where it’s headed in the future.
  • Create enthusiasm. Do you feel like you see the competition everywhere? This doesn’t happen by accident. Through sustained effort, success can build upon success and increase your share of voice on important issues in the traditional, online and social media channels where investors stay up to date on the health technology sector.

You need to know: Results won’t happen overnight. Work with a partner long before you plan to close. A year or 18 months will allow you to develop a well-thought-out, comprehensive strategy that creates visibility and interest in the right topics at the right time and within your target dates.

This work may include:

  • An in-depth market and competitive analysis to identify the best opportunities for positioning and messaging
  • Test messages with stakeholders, buyers and media to find out what resonates and what doesn’t so you can have the greatest impact.
  • Create or redesign your investor pitch deck to adapt to new messages and value stories
  • Speaker training so leaders know how to speak effectively to the media, on stage, or in any public forum about what makes your company different
  • Robust content development for thought leadership and marketing purposes to support awareness and lead generation efforts
  • Apply for high-profile speaking opportunities at conferences to showcase expertise and value to key industry audiences
  • Introducing analysts and building relationships to ensure inclusion in key industry reports
  • Establish a crisis communications protocol and plan to respond to cybersecurity incidents or any number of problems that may arise out of nowhere

Healthcare technology leaders have so much to consider when preparing their company for a funding round—whether it’s positioning for a Series A, raising a growth round, or planning an IPO. While you’re focused on achieving key operational and financial milestones, you should also be mindful of telling your company’s story in a way that grabs investors’ attention and builds trust with key stakeholders. This ultimately lays the foundation for long-term success.

Photo: Abscent84, Getty Images

Erin George is managing director of public relations and communications at Innsena, a consulting firm focused exclusively on healthcare technology and technology-enabled services companies. George brings nearly 20 years of healthcare industry experience and creativity to develop communications strategies that meet clients’ goals – from increasing market share and supporting business development to navigating transactions and crises to managing physician, employee and community perceptions during times of change. Before entering public relations, George worked as a business reporter and healthcare editor for publications in Nashville, Tennessee, and Pittsburgh, Pennsylvania. She lives in Louisville, Kentucky.

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