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Funding the Healthcare Revolution: Geek to Freak to Hero

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Alex Fair of MedStartr's talk at Stanford's MedicineX conference 2013

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Funding the Healthcare Revolution: Geek to Freak to Hero

  1. 1. Healthcare Revolution by Alex Fair, CEO MedStartr, Inc. 09.28.2013 MedicineX MedStartr.com | MedFundr.com @alexbfair | @MedStartr#MEDX
  2. 2. Geek to Freak to Hero #Geek2Freak2Hero#MEDX
  3. 3. We are not just any Geeks We are patients, engineers, scientists, doctors, policy experts, hospital leaders. We are Health Geeks. Hey Alex, I’m also a Fashionista! Indeed you are Jen, the only person I know who reads books on string theory and vogue in same plane trip. @endogoddess @LewCardia
  4. 4. And we don’t control anything Not the PayPal Mafia
  5. 5. We do our jobs and see problems
  6. 6. And Imagine Solutions But we also get ideas, Ideas we want to make happen to fix the problems we see in healthcare.
  7. 7. Healthcare Innovation is more difficult due to regulations and aversion to adoption …and predicting Success in Healthcare is difficult… THE PROBLEM WE SOLVE which constrains capital, which limits innovation, which makes healthcare less effective
  8. 8. And our Ideas aren’t usually a widget, something simple to buy @alexbfair#MEDX
  9. 9. It doesn’t usually get sold to consumers (patients) @MedStartr#MEDX
  10. 10. …and you generally need an expert to install it Image courtesy of Policymed.com
  11. 11. …aAnd no one, especially the patient thinks they should pay very much for it
  12. 12. …and it costs like a billion dollars to do anything of value
  13. 13. There is funding, but as consumers and doctors, Healthcare leaders, and the general public, we generally have No Say in what gets funded. NIH Grants, $30.9 Pharma R&D Investment,$49.5 Foundations/ SBIR, $3.0 Venture Capital,$8.5 Approximately $100B is Invested to fund Healthcare Innovation in U.S. Annually Sources of Funding For Healthcare Innovation – 2011 ($B) Venture Capital  Of the $8.5B invested in 2011, 19% ($1.6 billion) was invested in first or seed round investments and 81% ($6.9 billion) was invested in later stage projects  Of the $8.5B invested in 2011, 14% ($1.2 billion) was invested in healthcare IT investments and 86% ($7.3 billion) was invested in life sciences Excludes: Angel investments, No detailed backup to foundation capital invested in early stage projects. Foundations  A variety of foundations offer funding for early stage healthcare innovation, mostly focused around disease groups  In 2011, Susan G Komen For The Cure, one of the larger research funding not-for-profits had 2011 revenue of $358 million, but after fundraising expenses and administrative expenses only spent $283M million on programs (79% margin) NIH Grants  Largest institutes are the National Cancer Institute which consumes 16% of NIH funding ($5.1 billion) and National Heart, Lung, and Blood Disease which consumes 10% of the NIH funding ($3.0 billion)  NIH budget expected to contract due to government debt pressures and expected decline in national spending Excludes angel investment; approximates foundations
  14. 14. But we MUST try, because people will continue to be unhealthy and even die for preventable reasons if we don’t.
  15. 15. So we continue, fueled by the desire to help others with our mad geek skills. @alexbfair#MEDX Can we get a new definition for “Mad Scientist” please?
  16. 16. And we are not powerless Alameda Health system is funding their community teaching program on www.MedStartr.com – go check them out!
  17. 17. When People Stand Up Revolutions Happen When citizens get involved and activated, massive change is enabled. Crowdsourcing innovation and Crowdfunding their ideas is changing the world.
  18. 18. What Happens When You Engage Crowds that Care • Funding – Investors look for traction among KOLs and constituent institutions and patients • Partners – Where Corporate Innovation Officers shop • Publicity – weekly News Stories and three television interviews in our first six months • Community – Feedback, Clinical Centers, Trials, Support, Beta Testers, Distributors, and more …but this is just the beginning
  19. 19. Rev.1. How to Code a Revolution in Healthcare (the @FredTrotter / DocGraph story) @alexbfair#MEDX
  20. 20. 1: Get a Crazy Idea …that just might work @fredtotter #MEDX
  21. 21. 2. Run it by some friends (designers, doctors, programmers, nurses, artists, investors…) …until you prove it does
  22. 22. 3. Ask a crowd that cares to back it
  23. 23. …and they ask a crowd,
  24. 24. …and so on,
  25. 25. …and so on,
  26. 26. …and so on,
  27. 27. And then… You may actually get a hospital to sign up But who cares? Ok, that’s a little harsh and unfair of me, I should really avoid comments like that. I let it stand and said it in the first place because we have seen so many innovators and early adopters step forward and adopt new ideas but very rarely do we see hospitals. We can’t help them get better if they are not willing to be helped and it gets a little frustrating. We invite all Hospital leaders into the conversation though, please comments below, or email InnovativeHospitals@medstartr.com
  28. 28. Because you already have: Customers Partners and Funding
  29. 29. And who wants a term sheet? When you can have a bill of sale? Again, I am being a bit harsh, this time on Angels and VCs. Sorry about that, it’s just that after dozens of bad experiences, it seems like this is an industry that needs help being more efficient about finding the best companies and getting the right match of investor to idea could use an upgrade. This is why we are building MedFundr.com, Request access to the alpha at MedFundr.com
  30. 30. Fred Trotter/ NotOnlyForDev Results: • Eight Weeks • $45,011 Raised • 113 Patients, Doctors, Nurses or Health Care Pros • 24 Partners • New de facto standard in health data • and a new approach…
  31. 31. Serial Crowdfunding of Entrepreneurship! Projects live on MedStartr now!
  32. 32. Partners Stepping Up Companies that are partnering with crowdfunded projects on MedStartr.com Over 100 Partnerships Startd
  33. 33. Rev.2. Partners Driving Innovation • Challenges • Open Innovation Programs • Grants • Pitch Days 25% of the Robert Wood Johnson Day Pioneer Pitch Day projects in 2013 are MedStartrs (including MedStartr itself!)
  34. 34. - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 Inside Govt Rock Outside Cost Per Idea Cost Per Solution Open vs. Closed – In-House (2012, Fortune 100 Company) • 50M cost • 2 outside design vendors • 18 Months – Open Innovation Challenge CMMI/ CMS • 8,500+ ideas submitted • 900M offered • 3 Months – Public Open Challenge: Rock Health: • 800+ ideas submitted • 1.3 M/ 100K offered – Outside Customer Challenge • 10K offered • 1,000s of submission from customers Dollars @alexbfair#MEDX
  35. 35. Crowdsourcing Innovation This was a challenge we ran that worked out three times better than expected due to massive exposure our methodology drove. Some great ideas were sourced by this program! See it at www.MedStartr.com/CrowdsCare Learn more at http://about.medstartr.com/challenges
  36. 36. Tech •Crowdfunding •Challenges •Social Media Awareness •Strategy •Outreach •Design Operations •Setup •Management •Support Experts •Optimization •Mentors •Partners Engagement •Customers •Communities •Live Events How Your Crowd Drives Crowdfunding with an Open Innovation Ecosystem
  37. 37. Get Help From: Dr. Howard Luks, Regina Holliday, Sutha Kamal, Kim Whittemore, Eythor Ernstson, Donna Usiskin, Eugene Borukovich, Dr. Jen Dyer, Steve Greene, David Williams RN, Paulo Machado, Dave Chase Fred Trotter, and many more Mentors get involved, becoming advisors, early adopters, investors, or champions driving our client’s success Results: Crowds Drive Massive Exposure
  38. 38. Get Help From: Dr. Howard Luks, Regina Holliday, Sutha Kamal, Kim Whittemore, Eythor Ernstson, Donna Usiskin, Eugene Borukovich, Dr. Jen Dyer, Steve Greene, David Williams RN, Paulo Machado, Dave Chase Fred Trotter, and many more Mentors get involved, becoming advisors, early adopters, investors, or champions driving success PR Design Copy BizDev Partners IP Strategy SoMe Legal Capital Events Uber Geeks Get Involved to Power Ideas
  39. 39. Rev.3. Let Patients Lead! @ReginaHolliday
  40. 40. Regina Holliday is one of our true heros in healthcare. She dealt with the grief of losing her husband Fred and her anger at how the healthcare system failed him first by painting a 70xf17 foot mural in DC, and then by painting the back of hundreds of suit jackets for people transforming healthcare. Now she hangs ot with Presidents and is helping drive change faster and better than ever. Thanks Regina for all you do and for being on our Board!
  41. 41. #TheWalkingGallery Film • $13,175 in 4 weeks from Doctors, patients, Medical School Leaders • Film produced and distributed to increase awareness of Patient perspectives in all communities Partnership With Patients • $18,165 in 6 weeks from Doctors, Patients, and Cerner Sponsored in Kansas City • Created a conference to promote Physician / Patient Partnership
  42. 42. Sarah Kucharski FMDchat 501c(3) formed to help people suffering from a rare disease @FMDChat Great Example of someone going from Geek to Freak to Hero by owned her condition and building a community
  43. 43. Michael Weiss • Crohn’s Disease Warrior Patrol 501c(3) formed to help people suffering from Crohn’s, Colitis, and Irritable Bowel Disease @HospitalPatient Another great example,- Mike built a community of over 700 Crohn’s, Colitis, & IBD Disease patients in just a few months on MedStartr
  44. 44. John Accardi (Patient) & Frank Lewis (Engineer) @LewCardia John and Frank want to revolutionize Ostomy systems for Ostomates Everywhere – Fund them on www.MedStartr.com!
  45. 45. Creating the Wave • Starts with Patients • Builds with Doctors • Peaks with Partners • And you may even get a Hospital to sign up If you Do it Right, You all Ride the Wave together Photo courtesy New York Times
  46. 46. How will you Revolutionize Medicine? @alexbfair#MEDX
  47. 47. Get Your Hero On(if you need a cape, please see Regina Holliday in the back) Thank you for your support and attention @alexbfair#MEDX
  48. 48. Crowdfunding Healthcare Innovation Thank you for your interest. For more information please contact us at 530.MED.STARtr or GetStartd@medstartr.com Equity Crowdfunding for Healthcare We would love to be your Alfred.
  49. 49. For Corporations, Associations, Governments, and other Organizations we also help you drive innovation with our Crowds4Cures Open Innovation Platform Where Patients, Care Providers, Partners, Payers, and Institutions can collaborate to create the Healthcare Innovations they care most about

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