Sanaz Cordes, MD Interviewed as Featured Entrepreneur for HTIQ
Dr. Cordes, thank you for taking the time to share your thoughts with HIT*IQ. The health IT market continues to be dynamic and as a result, can throw off often confusing market signals. We wanted to speak with you because of your terrific background as a practitioner and serial entrepreneur to get some commentary to share with our diverse readership.
Q: Tell us about the Value Prop Shop (VPS) to provide some context.
Value Prop Shop is a specialized consultancy that works exclusively with healthcare startups. We are serial entrepreneurs who have had a seat at all four sides of the table: software startups, patient care providers, investors, and health system administrators. We founded VPS because we saw a significant market need for consultants who have lived and breathed the startup experience and who will roll up their sleeves to help guide startups to success with go-to-market sales, product, operation, and fundraising strategies. Startups need more than a high level strategy, though. They need a tactical execution plan, and we create a step-by-step action plan and help them execute it.
Q: The HIT market continues to present a rich opportunity for investors and startups – but it’s never as clean and easy as it may seem.
What do investors new to healthcare startup sometimes miss or overvalue?
Healthcare leadership is challenged to manage competing clinical, operational, and financial drivers and demands. We’ve had the privilege of working with 30+ startups of all stages - from early concept to post-series B companies. Investors that have funded startups in other markets often come into HIT and are often surprised by the unique challenges in the space.
For example, sales cycles and the barriers to market entry are uniquely different in health tech. New investors express concern about the length of the HIT sales cycle and may try to push for a faster or different process, but this can pose risk to deal closure and overall company success due to the misalignment. I cannot tell you the number of times I’ve heard someone from the healthcare C-Suite comment that they may get as many as 20-30 requests a week from startups selling a new disruptive. The good news is that healthcare is far more accepting of new tech than in the past. There are some 70+ active innovation centers located in healthcare facilities across the US, so many in the industry are open to it, but many of the structural issues and financial drivers have not changed. Read more