Listening to an entrepreneur tell the story of his or her company is one of the most exciting parts of our work. If we find the story compelling, we learn the business inside and out: What is the problem? How will it be addressed or solved? What is the market? What is the strategy to reach it? Who are the people who will build the business? As we ask our questions, we see how well an entrepreneur understands the business, the addressable markets, and how he or she plans to attack.
After more than a decade, our focus on disruptive businesses continues to provide discipline to our investing. We are grounded in areas of health care services we know well. Over time, our diligence process has become more sophisticated. We still look for evidence that a company’s structure and plans align with the vision, the market, the leadership, and the story of the business. We still look closely at a company’s financial models, its capital needs, and its growth projections. But we also look at the second and third order questions: If this business succeeds, how will the market respond? How well is the team anticipating changing conditions? If our investments are to fuel growth, we need to be convinced that the company is properly funding the key business assets. We want to work with people who are looking ahead.