When I meet relatively new founders in the healthtech space, one common question I get is, "What do I need in order to fundraise for my healthcare startup"? Over the past five years, MDaaS has raised over $4M in grants, equity, and debt investments; here are the top four things that have helped us raise money. 

A promising product or service

Have a product or service that solves an important enough problem that someone is willing to pay for it. And in healthcare, the beneficiary isn’t necessarily the payer. At the early stages, you might not have a lot of customers yet, but you should be able to show the potential of your product either via extensive market research, early traction from users, or a pilot that shows that someone is willing to pay.

Clear and concise fundraising materials

To convince potential investors of a promising product or service, you need to create a set of documents that includes things like your pitch deck, business plan, financial models, and historical financials. You might also need to provide documentation showing regulatory approvals, market information, technology stack, and others, depending on your business type and stage.

Your fundraising documents should demonstrate your understanding of the market, clearly articulate your business model, and communicate your unique value propositions through a compelling narrative.

Team credibility

Ideas are a dime a dozen; execution is king. Investors want to know that they are backing a team that can execute the vision. At the earliest stage, team is often the biggest factor for investors. Build a team that is passionate about the problem, has complementary and relevant skill sets, and has the grit to persevere when things get tough.

A supportive network

Even though it might seem unfair, having the right connections to the right people really helps in fundraising. If you are still early-stage without a lot of connections in the space, joining an accelerator or an incubator can be a great way to gain access to investor networks. You can also join founder groups and professional platforms and attend conferences and other events to broaden your network. As an entrepreneur, you have to be intentional about building a professional network around you that can support you during the different stages of your startup journey.