How to establish a health tech startup advisory board – TechCrunch
When you enter the health technology industry as a new startup, an advisory board is a crucial foundational step. A board of directors can walk you through the nuances specific to the industry, help you make important decisions, and prove your legitimacy to investors looking for a solid background in the industry.
An advisory board will be able to give you strategic information about your business and the broader healthcare and tech sectors.
In my experience raising capital, the unpredictable financial situation at the start of the pandemic meant that we almost lost our $ 2 million round, but got a pledge of $ 250,000, which we used up. to generate approximately $ 500,000 in income.
Something that helped this process was creating our advisory board and starting small – we didn’t go for all healthcare, but instead focused on two healthcare verticals. This allowed us to prove our concept, to build case studies and to win contracts with specific teams in our clients’ companies.
It pays to stay focused and prove your worth so that your advisory board members can defend you in niche markets, with the potential to grow in the future. For this reason, it’s important to identify the main intent behind your board, and exactly who should be in it.
Who to recruit
Three to five people is a great starting point for an advisory board, depending on the size and stage of your business. In health tech, you need more than just a healthcare perspective – you also need the insight of those who have already developed tech companies, perhaps outside of industry. . Our company’s board of directors is made up equally of two healthcare advisors and two technology advisors, and ideally you want to find a fifth who is familiar with both industries.
It pays to stay focused and prove your worth so that your advisory board members can defend you in niche markets, with the potential to grow in the future.
An MD, Ph.D. from a respected institution or thought leader in your healthcare field is the most important asset of an advisory board. They are highly decorated doctors who have strong ties and serve as a benchmark for their peers.
They give your business instant credibility, help you enter the minds of patients and healthcare providers, and can describe how various healthcare systems work.