TLDR:
- The healthcare industry needs more value-add than capital according to Echo Health Ventures CEO Rob Coppedge.
- The typical 10-year VC fund cycle is not suitable for healthcare innovation.
The US healthcare system is a complex entity that has been central to policy debates for years. Rob Coppedge, CEO of Echo Health Ventures, is focused on making a positive impact in the healthcare investing space. However, despite billions of dollars of investments, progress in lowering costs, increasing access, and improving quality has been minimal. Misaligned incentives and infrastructure issues contribute to these challenges.
Echo Health Ventures, with its corporate backing from the Echo Innovation Alliance, has a unique advantage in the healthcare investing landscape. This corporate support provides access to a network of healthcare plans covering millions of individuals. The feedback cycles and knowledge sharing facilitated by these partnerships can streamline the process of adopting new technologies at scale.
Coppedge believes that the traditional 10-year VC fund cycle is ill-suited for healthcare innovation due to the industry’s long timelines for proofs of concept and product-market fit. Corporate backing allows for greater focus on impact rather than fundraising and exit cycles, leading to tangible results.
Value-add is crucial in healthcare investing, and companies must prioritize metrics that go beyond financial gains. While the industry lacks a standard measurement metric, the focus should be on creating value and improving outcomes. Echo Health Ventures invests in a variety of healthcare sectors, with a significant percentage of their portfolio companies securing commercial agreements with corporate partners within 18 months of investment.
In conclusion, Echo Health Ventures’ approach to healthcare investing highlights the importance of value-add over capital, the need for corporate backing in the industry, and the challenges of measuring impact effectively.
