Where We Are Investing Now: Digital Health
Joyance Partners was founded in 2016 with the sole intention of finding and supporting companies that create what we call “Delightful Moments.”
Delightful Moments are part of all human experience: the small, but powerful, separations from the daily humdrum when we feel stronger, calmer, more joyful, more in control, more distant from pain and anxiety. Emerging science and technology present the potential to deliver these experiences. Science can help individuals be a bit happier, which can lead to greater health. Or a little healthier, which can lead to greater potential for happiness.
Because of the inextricable tie between health and happiness, there exists an equally strong connection between Delightful Moments and health. At Joyance, our definition of Digital Health is:
“Products that use emerging science and technology (databases, applications, AI, mobile devices, sensors, etc.) to create new devices, software, and systems that create Delightful Moments or improve the delivery, payment, and/or consumption of Delightful Moment products or that increase the development and commercialization of these products.”
Joyance will continue investing in digital health companies that are producing powerful new experiences, addressing major pain points, or supporting the delivery and development of products propelling strong consumer outcomes. In every case, we need companies that have clear scientific/technological differentiation and clear business models that target consumers as the end-user.
We will look for companies that focus on:
- Health-improving technology, e.g., telehealth, healthcare AI, VR
- Chronic disease prevention primarily and treatment secondarily
- Platforms that bring care more into the hands of consumers
- Neurotech that impact, and is controllable by, the consumer
- Mental health and mindfulness based on science
- Novel modes for improving nutrition and fitness
- Femtech products, e.g., beauty and personal care (cosmeceuticals), maternal health, pregnancy
- Longevity/senior care outside of traditional institutional approaches
COVID’s Impact on Digital Health
The current pandemic has accelerated the market for Digital Health. As investors, we should leverage that shift in attitudes and organizational behavior. H2 2020 is a prime investment season for Digital Health, especially in telehealth and other care-at-a-distance approaches.
COVID could be the breakthrough moment for these technologies as:
- Digital health prevails as people avoid in-person care
- Regulations governing digital health relaxes
- Reimbursement for digital visits expands
- Different solutions fight for consumers’ attention
- Consumer trust evolves, especially as non-COVID-19 patients receive less care
- Consumers who use digital channels will stick with them
- Virtual care options explode
- Demand surges to integrate information from virtual visits to patient records
- There is more adoption of digital-first insurance products
- Cheaper digital service cause premiums to drop
We should pay special attention to every possible permutation of at-home treatment and care. We aren’t just looking for apps; we want fully integrated digital in-person experiences, potentially with some direct human element included.
Areas of particular note here are:
- Asynchronous telehealth
- Chatbots
- Symptom checkers
- Home tests
- Novel biomarker-based systems
The COVID-19 pandemic has also pushed more people to seek virtual alternatives for non-essential health and wellness concerns — a trend that has the potential to shape personal health practices going forward. Nearly half of consumers intend to continue using telemedicine platforms for health after the pandemic ends, according to McKinsey.
Thus, our investment approach to Digital Health will be all-encompassing. We will find and evaluate many companies. Because digital health startups can achieve revenue quickly, we can evaluate these companies using similar methodology to how we choose Consumer Goods companies.
By Managing Partner Mike Edelhart
@MikeEdelhart
