How Technology is Fixing the Broken Patient Journey

How Technology is Fixing the Broken Patient Journey

A digital disruption of the healthcare sector - pt i

The global healthcare sector is notorious for being expensive and inefficient with traditional providers struggling to cope with modern day industry dynamics. In this two-part blog series Beatrice Aliprandi shares her research and views on a broken healthcare sector and how technological innovation is serving up the true remedy.

Part 1
Key challenges faced by the healthcare sector today are:

  • Aging and growing population

  • A system focussed on treatment rather than prevention/health maintenance

  • Minimal penetration of new technologies

  • A bureaucratic sector, sluggish in reacting to change

The healthcare sector desperately needs a technological revelation to help digitalise the patient’s journey, bringing with it; efficiencies, automation and a focus on prevention rather than adhoc treatment.
— Beatrice Aliprandi

As well as these general industry developments, there are specific healthcare challenges in the UK alone. The over-65 UK population is estimated to reach 25% by 2044, compared to 14% just 40 years ago. NHS public spending represented 30% of the UK budget in 2015-2016 (more than £125 billion), compared to 11% in 1955-56(2). These trends combined are putting significant pressure on the UK health service rendering their care unsustainable in the long term. The UK is not alone with most European countries are also battling with similar issues.

Life Expectancy of World Population in 1800, 1950 and 2012(1)

Life Expectancy of World Population in 1800, 1950 and 2012(1)

As population increases and ages, it is natural to ask ourselves if there will be healthcare resources to meet the growing demand? In the majority of Western Europe there are between 30 to 40 physicians per 10,000 population, dropping to 20-30 in the UK and in the US, with significant uncertainty as to whether this proportion will be maintained in the future as the population evolves.

Global distribution of the health workforce (per 10,000 population)(3)

Global distribution of the health workforce (per 10,000 population)(3)

The healthcare sector desperately needs a technological revelation to help digitalise the patient’s journey, bringing with it; efficiencies, automation and a focus on prevention rather than adhoc treatment.

McKinsey Global Institute industry digitalisation index (4)

McKinsey Global Institute industry digitalisation index (4)

From a funding perspective, volumes are strong with $3.4 billion invested in digital health just in the first half of 2018(5), but the sector has been lagging behind other more mature technology subsectors, with 75% of funding rounds concentrated at Seed to Series B stage. This also clearly proves there is a growing opportunity for Venture Capital firms funding early stage innovations.

A significant amount of my time has gone into mapping out the sector, meeting brilliant and passionate entrepreneurs and reading research. The sector is broad and innovations are in their infancy at each stage of the patient’s journey:

healthcare_innovations.JPG

In turn, there are several tools addressing each of the above stages:

1.       Consumer apps

2.       Consumer wearables and connected sensors

3.       Patient information collection tools

4.       Telemedicine

5.       Connected virtual assistants

6.       Health records data-hub

For each category of tools addressing stages of the patient journey, I have gathered my thoughts, pros and cons, and best investment strategies, which I will reveal in Part 2 of this blog (stay tuned)!

In summary traditional healthcare cannot sustain current spending patterns and volumes. There is a critical need to create more efficiencies and focus on prevention rather than disease treatment. Despite the macro pressures and industry specific challenges, there is a huge untapped opportunity in the health-tech sector leaving a blank canvas to savvy and passionate entrepreneurs who can genuinely add value and take the sector to the next level.

It’s an exciting time for the sector and it’s easy to get drawn into these innovation offerings, so to sufficiently evaluate the opportunity- here are my 5 Top Tips for those looking at start-ups in this space;

Beatrice Aliprandi - Senior Analyst - @bealiprandi   

Beatrice joined Talis Capital in 2018 after spending three years working at Jefferies in their Investment Banking division, where she has been involved in several transactions primarily in the Technology, Media and Telecoms space with a combined value of c.$4 billion.

Beatrice holds a MSc in Risk and Finance from The London School of Economics and a BSc in Business Administration from Bocconi University. She speaks three languages and loves travelling, mindful meditation and wine tasting.

(1)    Life expectancy data from Gapminder.org, interactive data visualisation at OurWorldinData.org; CBInsight: “Healthcare in 2025, 2035”
(2)    BBC: “10 charts that show why the NHS is in trouble” (8 Feb 2017); data from ONS
(3)    World Health Statistics 2010; CBInsight: “Healthcare in 2025, 2035”
(4)    Mckinsey Global Institute: Digital America: a Tale of the Haves and Have-Mores (December 2015)
(5)    RockHealth: 2018 Midyear Funding Review (July 2018)

 

PropTech Conference 2018

Thank you to all our speakers & guests for making the conference a real success! Please find the follow up materials, photos and our views below.

Global research shows both innovation and fundraising dedicated to innovation in Real Estate is in significant growth.[1] PropTech is entering into a new wave, becoming more mainstream, better understood and therefore easier to attribute real value. Talis Capital has made a number of investments in both PropTech as well as other software solutions with property market applications. On 16 Nov 2018 Talis Capital hosted their conference as a platform to discuss how technology, innovation and digitalisation are transforming Real Estate and the world we live in.

Real Estate is valued globally at around $229 trillion a figure which exceeds the global value of equities and securitized debt by $79 trillion. We are seeing explosive investment growth as Global Investment in PropTech start ups tripled from 2016 to 2017, rising to $12.6 billion from $4.2 billion1.

Across the world in 2017 we saw the rise of Megadeals in real estate technology from the likes of WeWork, Compass and Offerpad in the US to China with Xiaozhu and the UK with LendInvest & Nested[2]. Who have mostly gone on to raise significant rounds this year e.g SoftBank’s $3bn investment into WeWork, Lendinvest’s $40m pre IPO round and $120m for Nested from debt finance as well as equity cheques from Balderton & Northzone[3].

Property is one of the largest asset classes in the world and covers a broad range of subsectors. New entrants into the market are taking advantage of revolutionising how players interact along the real estate chain - focusing on curation, financing, ownership, autonomy, AI and big data to maximise yields, capitalise on efficiencies and create new products and services.

We see real opportunity in the sector and look forward to continuing to invest in exciting technologies in this space as well as helping our current PropTech companies to scale.

Click here to download the slides and research presented and the programme brochure.

[1] Source: MetaPropGlobal proptech confidence index
[2] Source: Real Estate Tech Annual Report 2017
[3] Source: Pitchbook 2018

Talis take on venture opportunities in Cyber Security, PropTech and InsuranceTech

Cyber Security

While many segments of the technology market are driven by reducing inefficiencies, automating processes and increasing productivity, cybersecurity spending is driven by cybercrime. We have reached unrivalled levels of cyber attacks which are in turn generating a huge number of opportunities in the space:

Cyber Security is now one of the fastest growing areas of Venture Capital thanks to the billions spent on cyber-security annually and the constant stream of major hacks and leaks hitting the headlines

Cyber Security Funding 2013-2017 : Source: CB Insights

Cyber Security Funding 2013-2017 : Source: CB Insights

The depth and breadth of the cyber security market is now so vast, the potential of identifying the next wave of start-up success becomes ever more challenging

Cyber Security 1.png

Talis has identified several segments of the cyber security market that are poised for significant growth:

Screenshot (42).png

Prop-Tech

Property is one of the biggest asset classes and is considered to have one of the lowest risk profiles. Technology is now disrupting the dynamics of this industry and generating higher yields

Prop-Tech Annual Global Financing History 2013 -2017 : Source: CB Insights

Prop-Tech Annual Global Financing History 2013 -2017 : Source: CB Insights

A number of trends in property are emerging:

  • The demand for flexible working space is creating a new breed of property-companies which are pushing up property valuations they take over and providing op-co opportunities

  • Long lease rentals have been preferable due to the hassle of short-term leasing. Technology now facilitates easy, efficient and high-yield short-lease rentals

  • Technology innovation allows dis-used / rundown property to be re-purposed cheaply, without changing its use - generating high returns (Currently 500 hectares of empty or under-utilised industrial land across London alone – the equivalent to 750 football pitches)

As a result, investors are pouring money into prop-tech start-ups:

The Proptech market is now expansive: Early application of technology in property revolved around the most visible uses: automating manual processes, improving work efficiency and web-enabled marketing. Recent trends – the sharing economy, crowdfunding, uber-isation, social media and mobile are developing entire new segments within it:

PropCyber Security is now one of the fastest growing areas of Venture Capital thanks to the billions spent on cyber-security annually and the constant stream of major hacks and leaks hitting the headlinestech 2.jpg

The Talis team has identified several buoyant areas of the proptech market that are brimming with confidence and have a wealth of innovative startups:

Proptech.png

Insurance-Tech

The incumbent insurance industry is rife with old, legacy, labour intensive companies. Insurance is undergoing a monumental shift –A fifth of European consumers stated they would buy banking or insurance services from companies like Facebook, Google, Amazon or Apple. (Fujitsu, 2016 survey)

Tech companies including Google are significantly increasing their investments and partnerships in insurance, showing the desire to enter and dominate this old conservative industry

Insurance-Tech Annual Global Financing History 2013 - 2017 : Source: CB Insights

Insurance-Tech Annual Global Financing History 2013 - 2017 : Source: CB Insights