In this article, we speak with David Buller and Laurent van Lerberghe of Keles, two seasoned experts in HealthTech investment. David, Managing Partner at Keles, boasts a background in founding Avantec Healthcare and integrating startups into global companies, which has provided him with deep insights into scaling HealthTech ventures. Laurent, with 25 years of experience in Big Pharma, including roles at BCG, Abbott, and Sanofi, co-founded Keles to bring his strategic expertise to the digital health sector. Together, they offer invaluable advice and support to HealthTech startups seeking investment and navigating the complex landscape of scaling their innovations.
When sitting with Buller and van Lerberghe, the pair considered what they look for in an individual and a company when considering investment, with technical skills, commercial awareness as well as humility and active listening coming out on top.
Buller values awareness of the commercial journey needed to create successful solutions, he said: “We seek a combination of technical expertise and commercial awareness. For deep tech companies, technical skills are crucial, but equally important is the awareness of the journey from R&D to a commercial entity. We value founders who understand their limitations and are open to bringing in other skill sets as the company grows. A strong founding team that can adapt and grow with the company is essential. We also look for companies with a clear path to regulatory approval and market entry.”
There are certain things about an individual that catches van Lerberghe’s eye. “Humility and active listening are essential. We look for individuals with unique skills that will aid in the journey, particularly those with practical experience in market access and regulatory affairs.”
He added: “We also seek a balance between B2C and B2B approaches, especially in Europe where B2B remains the primary avenue for initial growth. We want to see a clear value proposition and a realistic go-to-market strategy. Additionally, we look for companies that can demonstrate traction and have a deep understanding of their market and customers.”
Knowledge about the investment space can vary. From new starters to first-time seekers of investment, the idea of how the process rolls out can be filled with misinformation and misconception.
Buller highlighted a strong example of how people entering an investment process can be misinformed. “A common misconception is the immediate expectation of revenue without understanding the lengthy regulatory processes involved in healthcare. Investors need to recognise these extended investment cycles and value inflexion points. It’s not just about getting to market quickly; it’s about doing so in a way that meets regulatory standards and ensures patient safety.”
When considering patient safety, it is integral within the healthcare industry to take regulation into consideration. However, there are mixed feelings about ‘over-regulating’ and how the process can hugely delay getting products and services to market.
“Over-regulation can slow down innovation. We need a balance that protects patients while also facilitating quicker market entry. Harmonising regulations across regions can help, especially in Europe where multiple layers of regulation can create unnecessary hurdles. There is also a misconception that digital health solutions are easy to implement in traditional healthcare settings, but in reality, it requires significant change management and integration with existing systems,” van Lerberghe commented.
HealthTech startups particularly, can easily feel lost in the investments and regulation space and can feel that scaling their business or concept can feel out of reach. Buller advises that the process of scaling up depends on adaptability and knowledge of the process.
“Understand the journey of scaling up, including regulatory and market differences across regions. Ensure you have the right team, investors, and advisors to support this journey. Focus on building a strong foundation with a clear regulatory strategy and a pathway to market. Be prepared to iterate and adapt based on feedback from stakeholders and regulatory bodies,” said Buller.
There is no one-size-fits-all approach believes van Lerberghe. “Partnering with the right people can be crucial for faster and more effective growth. Identifying who will pay for your solutions early on is also vital for sustaining and scaling your business. Make sure you have a thorough understanding of the healthcare ecosystem and the various stakeholders involved. Building strong relationships with key opinion leaders and healthcare providers can also facilitate market entry and adoption,” added van Lerberghe.
The importance and goals of integrating these solutions into healthcare systems or within users’ homes revolve around relieving the stresses on the public sector and improving public health. These technologies have evolved into a diverse range, from VR headset therapy to mobile ovulation tracking, many of which have become day-to-day assets to many patients and practitioners. Many of these solutions originated as startups that depended on investment and scaling to reach the market. Without this support, they might not exist today.
Buller reflects on the technologies, as someone working in the investment space, that he is most excited about. “AI, especially in diagnostics and imaging, is significant. However, the key is the quality and access to data, which underpins the effectiveness of AI models. We invest in technologies that demonstrate real value and practical applications rather than just being trendy. For example, AI that can assist in early diagnosis and improve patient outcomes has immense potential. We are also excited about telemedicine platforms that expand access to care, particularly in underserved areas.”
With a different take, van Lerberghe is most excited about technologies that are more ‘mundane’. “Technologies like exoskeletons for mobility impairments and advanced imaging for early detection of diseases are exciting. We also value seemingly mundane technologies that streamline essential processes, such as quality assurance in clinical trials. Digital therapeutics and personalised medicine are other areas with significant potential to transform healthcare delivery and outcomes. We look for technologies that can demonstrate both clinical efficacy and cost-effectiveness,” van Lerberghe concluded.
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