The view from life science investors

I recently attended a life science investor-entrepreneur summit that included an inspirational keynote , a pitch fest and an investor panel that included, among others, a representative of a corporate venture firm and Amazon.

Here are my take homes from the latter:

1. Investors are upping the ante when it comes to demonstrating evidence based benchmarks, like regulatory approval, IP protection, barriers to entry and commercial traction before they write the checks.
2. At last, albeit a start, they are recognizing the value of having physicians and other sickcare end users involved in the R/D and go to market strategy
3. Artificial intelligence is a tool that is overemphasized.
4. Most "artificial intelligence" solutions are, in fact, not really artificial intelligence as commonly defined by experienced data and computer scientists
5. Defining the pre-money value of your company is an exercise in the founder going high and the investor going low. One panelist described it as a battle of egos.
6. Having "hood ornaments" on your management team or board i.e. key opinion leaders or subject matter experts who don't really do much to add value to the enterprise, are a liability, not an asset.
7. Most are trying to achieve more diversity, equity and inclusion in their investment decisions. Unfortunately, in many instances, the results tell a different story and the "warm introduction" and knowing the secret handshake still seems to be the coin of the realm.
8. "Nontraditional" entrants, like BIG TECH and retail pharma will have to navigate the same barriers and solve the sickcare Rubrick's Cube just like everyone else and, has already been seen, will fail like everyone else.
9. There is nothing like face-to-face networking to get things done and create collaborations
10. There is an unmet need to educate and train sick care professionals interested in entrepreneurship.

Here are some thoughts about the present investor environment

Here is what you should know about micro private equity firms.

Here are the 7Ps of raising private money

Is your company "VC backable"?

BOTTOM LINE: Do your homework. Don't waste time looking for money in all the wrong places or pitching a product that is not aligned with an investor strategy or focus.

When it comes to digital transformation, follow the money.

Most agreed that to find money, tell your story (do not read it from a script) and focus on the "3Ts": Team, Technology and TAM (total addressable market), SAM (serviceable addressable market) and SOM(serviceable obtainable market).

The good news is that you mostly likely will get lots more chances after striking out.

Arlen Meyers, MD, MBA is the President and CEO of the Society of Physician Entrepreneurs