Health-tech in Brazil: Transformative initiatives and Fat startups
The Brazilian chapter of the Transformative Technology Community occurred in March 27 at CIVI-CO (great place with great people targeting social impact).
Alexandre is an old friend and the leader of the event. He invited me to help with the medical / health tech community. We had a tight schedule from the beginning and it was our first time working together, but the moment was very rewarding.
Two speakers discussed the Brazilian ecosystem of Health tech companies and startups:
Felipe Almeida evaluates and follows startups for one the Brazilian most prestigious incubators, eretz.bio (by the Benef. Albert Einstein Isr.-Braz. Society).
Ana Cândido is an entrepreneur working on several impactful startups. She was there as the COO of the InsulinApp . Winner of Doutor Cidadão prize 2017 (São Paulo Association of Medicine).
Among the people attending, there were representatives of EdTechs (SANAR , Dr. Tips), fintechs, experimental therapies, investors and academics (USP, UNIFESP). If you were at the event, please share your thoughts as comments or some other media!
Fat startups
One of the peculiarities health tech entrepreneurs in Brazil face is the significant government regulation and participation in the market, which is planed to increase, as the constitution aims for universal health care provided by the State. Speakers came to a consensus that a direct consequence was more conservative decisions overall.
When asked, Ana said InsulinApp has to overcome a considerable gap between getting users (health professionals) approval and a positive buying decision from budget managers.
Most business guidelines would advise one to drop or pivot when a product is mature but won’t sell.
Felipe backs the thought with an anecdote.
- Client/investor with a background in finances after a successful pitch: “Ok. I’m sold. Who uses this?” .
- “Nobody”.
- With an eager smile: “How much do you want for it?!”.
-Client/investor with a background in healthcare after a successful pitch: “Ok. I’m sold. Who uses this?” .
- “Nobody”.
- “Well… We have to think this through ”.
Special levels of credibility are needed in health tech. Is the solution safe? How robust is it? Entrepreneurs have to build some bulk before acceptance.
Safety and Skin in the game
When caring for human lives, managers are worried about avoiding predictable risks and mistakes.
Safety is at first and decision makers will rarely play the odds. Primum non nocere (First, do not harm).
For investors, it means that each product cycle is longer, sometimes requiring clinical trials and procedures which take years to finish. Healthtechs are related to long term investment most of the times.
One of the attendees pointed that Israeli incubators already put ideas through a full path: from evaluation to prototyping, clinical tests and delivery to the market.
In less mature ecosystems, entrepreneurs have a hard time crossing the path. Thanks to those who attended, contributing to the event. I’m sure TTA initiative will accelerate things. See you again soon!
