The document outlines different stages of start-up funding for digital health companies, including idea stage with the founder's own money, co-founder stage with two owners, family and friends investing, seed rounds with business angels, Series A rounds with venture capitalists, and successful IPOs. It notes that most start-ups fail due to running out of money and not engaging with potential investors, experts, regulators, payers, users, and patients who could help. The presentation encourages understanding these stakeholders and what can be done to succeed in obtaining funding.

1. Sep-19 | 1Business Presentation | © ARCONDIS 2019
HOW START-UP
FUNDING IN DIGITAL
HEALTH CAN WORK
Andreas Igel, MBA, E. M. B. L.-HSG
DayOne Conference, 09. September 2019

2. Sep-19 | 2Business Presentation | © ARCONDIS 2019
Idea Stage
You
 Start the company
 Invest your own money and time
 Own 100% of nothing
100%

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Co-Founder Stage
50%
50%
Co-Founder
 Does half of the work
 Invests his own money and time
 Owns 50% of nothing
You
 Still own 50% of nothing

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37.5% 5.0%
20.0%
37.5%
Family & Friends
Family & Friends
 Invest before anyone else at the lowest price
YOU
 Should think of building an option pool
now (stock set aside for future
employees)

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31.2%
4.2%
16.7%
16.7%
31.2%
Seed Round
Business Angels
 Have at least CHF 200’000 or 1 Million annually
 Are accredited investors and usually give advice
 Invest their own money

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19.2%
2.6%
10.3%
33.3%
13.5%
1.8%
19.2%
Series A
Venture Capitalists
 Persuade other people to put money in their funds
 Invest that money, starting at CHF 500’000
Early Employees
 Gamble on the start-up by accepting low salaries
 Usually get some stock out of the option pool

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17.6%
2.4%
8.3%
30.5%
12.5%
1.7%
9.5%
17.6%
Successful IPO
Investment Bank
 Does IPO paperwork and sells a lot of stocks
 Gets 7% of the whole IPO for it
Anyone
 After company does the IPO, anyone in the world
can become your investor
You & your co-founder
have each 17.6% of a lot

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Why do most
Digital Health
Start-ups fail?

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Most start-ups run out of money at some stage, because they…
Business Angels Venture Capitalists Early Employees Investment Bank
 Fail at first pitch  Fail to perform
 Fail to engage  Fail to build trust

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So, what can
YOU DO?

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Understand
Experts
Potential
Investors Regulators
Payers
Users
Anyone
who can
help you
Patient

12. Sep-19 | 12Business Presentation | © ARCONDIS 2019
Ihr Referent
Andreas Igel, MBA, E.M.B.L.-HSG
Leiter Healthcare
andreas.igel@arcondis.com
+41 79 299 36 54
Arcondis AG – Basel
Christoph-Merian-Ring 31a
CH-4153 Reinach
info@arcondis.com

13. Sep-19 | 13Business Presentation | © ARCONDIS 2019
Arcondis AG – Basel
Christoph-Merian-Ring 31a
CH-4153 Reinach
Tel: +41 61 717 82 00
Fax: +41 61 717 82 01
Mail: info@arcondis.com
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Mergenthalerallee 79-81
D-65760 Eschborn
Tel: +49 6196 76 9988 0
Fax: +49 6196 76 9988 10
Mail: cs-eschborn@arcondis.com
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Landshuter Allee 8
D-80637 München
Tel: +49 89 54 55 83 24
Fax: +49 89 54 55 83 99
Mail: cs-muenchen@arcondis.com