Currnt | Are larger health IT companies investing in earlier-stage startups than previously seen?

I just chatted with someone who attended the JP Morgan healthcare conference earlier this month. One of his key takeaways was that larger healthcare/health IT companies were investing in early-stage startups far more often than they have before.

Have you seen this happening? If so, can you provide specific examples of such transactions? And why do you think acquirers have made this shift in their M&A patterns?

M&A

Healthcare M&A

Healthcare Information Technology

Health IT

Technology Start-ups

Healthcare Industry

Anne Zieger
64 months ago

2 answers

Early-stage startups [New Cos.]

YES - It is not uncommon for early-stage startups to NOT seek organic growth. In fact, their entire Raison d'etre is to be acquired or merged with a larger comp;any. I have several colleagues who went this route. A bit non-traditional compared to the olden days.

Dr. David E. M
64 months ago

That may be.However, what struck my contact was not that the startups sought to be acquired, but rather, that corporate investors were doing so more aggressively. - Anne 64 months ago

OK; earlier in the pipeline? - Dr. David E. 64 months ago

Start ups need to avoid the Google/Facebook dead zone according to HIT experts at JPM this year. Otherwise this is accurate - early stage wearables and app cos especially where the major can control the platform and ecosystem.

Fred Brown
64 months ago

It makes sense to me that these larger companies would buy rather than build, especially in the relatively new wearables space. If they already have an emerging ecosystem of their own -- especially a health system -- the investment can pay off quickly. What do you mean about the Google/Facebook "dead zone."? - Anne 64 months ago

Thanks - Dr. David E. 64 months ago

Have some input?

BACK TO QUESTIONS

Latest questions:

Trending questions:

Hot questions:

Are larger health IT companies investing in earlier-stage startups than previously seen?

2 answers

Have some input?

Thanks for making your first post!

Login to your account

Create your account

Recover password

Linkedin URL

Total Points:

Edit Message