Digital Health Expert Lisa Suennen Features on the MTPConnect Podcast

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13 February 2023

Lisa Suennen, a US-based entrepreneur, operations leader, venture capital investor, and industry advisor, is the Chair of ANDHealth’s International Investment Advisory Committee.

Lisa was in Australia recently and joined Caroline Duell on the MTPConnect Podcast to discuss the state of the digital health sector in Australia and globally.

She shared some key takeaways for companies working in the early stages of developing a digital health innovation.

“Historically, every part of healthcare has had to prove some effect, and to a certain extent, adopt a return on investment. Digital health should be no different and is no different. From the very beginning, they need to be building and executing on a plan to prove both clinical efficacy or operational efficacy, depending on what type of product it is, and financial efficacy, meaning economic return on investment. Without those two things, there's no adoption, there’s just luck, and that is not a sustainable business model. You can’t work around that. It’s not a quick step.”

Start-ups in this sector need funding and she believes Australia’s sector has some challenges but they are not impossible. Some investors invest in the very earliest stages of pre-seed or seed stage companies, while some investors prefer to invest in very late-stage growth, companies with over $10-$20 million in revenue. But in between, there is almost no investment.

“The investor base in Australia is very limited for Series A to Series C companies, which makes it super hard. Which is why I think a lot of Australian companies come to the US to find that money, but they mostly can’t, not because it's not there, but because it's hard for foreign companies that haven't created some significant local success to just jump over the ocean, no matter where they go.”

Lisa also had some tips for digital health start-ups! Firstly, be capital efficient: if you raise some money, shepherd it wisely. Make sure to prioritise evidence and prioritise revenue, and not nice furniture. And finally, get all the free help you can, whether it's from government, grants, MBA students willing to do internships or clients who are willing to pay to pilot projects. And don't over extend yourself too early because it never goes well.

“Revenue is the best source of funding. And sometimes, it's better not to raise venture capital, if you don't need it, or avoid it altogether.

“There are a lot of obligations that come with venture money…until you are really ready to take institutional money…it is not a great idea,” she said.

She also encourages local digital health companies to get in touch with ANDHealth to get support to grow and scale their businesses.

Listen to this podcast episode to find out more about the challenges and opportunities in the digital health sector, meeting the needs of investors, the importance of technology capability and why in the end it is about clinical benefits for patients. And check out Lisa’s blog at www.venturevalkyrie.com