Dan Easton, a Principal at Unorthodox Ventures, recently shared his insights ahead of his role as a judge at the INVEST Pitch Perfect startup contest which will focus on pediatric mental health at the MedCity INVEST Digital Health conference in Dallas on September 18. Unorthodox Ventures has a strong track record in healthcare investing, with 16 investments made in the past two years, particularly in the innovative field of medical devices.
Easton described how their investments typically center on solving real problems and benefiting individuals with genuine needs, aligning particularly with healthcare due to its critical nature. Within this sector, they have found cardiovascular health to be especially promising due to the increasing lifespan of the population and the commonality of heart or circulatory issues that arise as people age. His role at Unorthodox Ventures involves guiding portfolio companies on long-term strategic planning, assisting in crucial hiring decisions, and sometimes stepping in as an interim executive to ensure these companies have the resources needed for rapid growth.
While Easton’s firm predominantly invests in cardiovascular innovations, Unorthodox Ventures has also engaged in health tech that assists individuals of all ages in understanding their bodies better, such as metabolism and blood sugar monitoring technologies. These investments have become increasingly pertinent as the FDA approved a record number of new medical technologies in 2023, signaling continued rapid advancement driven by machine intelligence and automation in the healthcare sector.
Easton’s interest in the pediatric mental health sector stems from the belief in early development of a relationship with healthcare providers and the structured guidance it offers young patients. He noted the critical issues arising from neglect in this area, such as the statistic from the American Medical Association that half of all patients do not follow their medical prescriptions, leading to deteriorating health conditions. This makes early, structured intervention in pediatric mental health not only beneficial but essential.
One example of impactful technology that Easton highlighted involves easier monitoring of blood sugar levels. Given the alarming projection by the CDC that the number of young people diagnosed with Type 2 diabetes could increase by nearly 700% by 2060, technologies that enable better management of blood sugar are becoming crucial. These technologies form part of broader health innovations that can help in preemptively managing or mitigating severe health challenges over time.
For healthcare startups wanting to navigate the complex terrain of the medical industry, Easton emphasized the importance of comprehensive preparatory work including market research, business modeling, and reimbursement planning well ahead of clinical trials. He critiqued the common startup mistake of developing technology without a clear market need—a pitfall that results in financial and strategic difficulties down the line. Sufficient funding and insurance company support are critical from the early stages of product development.
Looking at the overall landscape, he recognized that accurately estimating the necessary capital for both the pre-launch and post-launch phases is a significant challenge for startups. This has been compounded by higher scrutiny from investors in rising interest rates scenarios, making financial foresight and strategic planning more crucial than ever.
Finally, Easton’s advice to healthcare startups was to be proactive in hiring experienced personnel. He encouraged young founders to overcome the hesitation of hiring individuals who may be older or more experienced, stressing that the best managers recognize and harness the unique contributions of each team member to propel the company forward.
Easton’s insights reveal a comprehensive strategy for healthcare startups, focusing on market necessity, strategic hiring, and innovative solutions, thus laying a structured pathway for success in the dynamic and ever-evolving healthcare sector. His involvement in the upcoming MedCity INVEST Digital Health conference as a judge in the pediatric mental health startup contest marks a significant step towards fostering new solutions and innovations that address critical health issues from a young age.
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