I invite you to read the second part of the conversation with Aleksander Kłósek from the Venture Capital fund YouNick Mint. This time, the expert shared what makes Polish start-ups stand out on the international scene and what factors influence investors’ decisions.

YouNick Mint is one of the few Polish funds that invests in MedTech and BioTech companies, where regulations add an extra layer of risk. How do you approach this?

In MedTech companies, in addition to the numerous risks related to business, market, technology, and the founding team (common in most early-stage projects), there is another critical factor: regulatory risk. The procedures in this area are well-defined by both national and international regulatory bodies, such as the European Medicines Agency (EMA) and the U.S. Food and Drug Administration (FDA). Since this sector only began to develop in Poland after the political transformation, there is a shortage of specialists with expertise in this area, often necessitating support from international experts. When these experts are external advisors rather than part of the team, the cost of involving them in the project can be very high. The option of case-by-case engagement is often insufficient for effective goal realization within the organization. Therefore, all regulatory actions must be planned from the very beginning. The company should anticipate at what stage of development it will need additional expertise, where to find it, and how much funding will be required for this purpose.

Do you support start-ups in finding regulatory specialists?

Yes, we both raise awareness of these issues among start-ups and assist them in finding the right specialists. We encourage entrepreneurs to identify gaps in competencies, both in technology and regulation. A „gap analysis” is especially important to „know what you don’t know” and what might become a challenge so that it can be addressed in advance. It is crucial to ensure that these aspects do not hinder the further development of the venture.

What operational support do you offer to start-ups?

We engage in various aspects, from corporate and legal support to HR areas, to finding partners and advisors in different parts of the project. We use our experience to provide solutions and support entrepreneurs in making strategic decisions. Based on our many years of experience, we can often suggest certain solutions that have worked in similar circumstances. However, the role of the team in decision-making is always crucial. An „all-knowing” investor rarely contributes positively to a company – it is the management and founders, not the fund’s representative, who should know the most about the business and have a vision for its future. From a start-up’s perspective, the most important thing is that the investor does not interfere with business operations (laughs) while offering support where it is needed.

What is the significance of public support for the development of MedTech and HealthTech start-ups in Poland?

We are currently at a point where medical projects are highly demanding and time-consuming to implement. As a result, many investors prefer to invest in areas such as IT or marketplaces, which, in their early stages, still carry high business risk but are not affected by a complex regulatory environment. Therefore, to encourage private capital by limiting risk, public sector support for innovative ventures is crucial. In other regions of the world, both in Europe and the United States, public support is well-developed. Various grants and other initiatives backed by government institutions or NGOs support technology development. Currently, there is a funding gap in Poland, especially for early-stage companies. Programs like Bridge Alfa, which ran from 2016 to 2023, helped finance many innovative pre-seed/early-stage projects. However, obtaining financing for innovative companies is now more challenging. Nonetheless, it is worth noting that market-attractive ventures, led by experienced and determined founders, can effectively attract capital from private investors – either funds or business angels.

What sets Polish start-ups apart from foreign competitors?

I believe a significant factor is the difference in access to capital, especially compared to medical or biotech companies in the United States and Western Europe. The BioTech and MedTech industries are very capital-intensive. However, the need to manage more modest resources makes Polish start-ups more cost-effective and resourceful in finding solutions. Large international companies often „scratch their heads” when they see the results achieved by Polish companies with relatively low investments. Another advantage is the still lower labor costs in Poland, which applies to both hiring highly qualified specialists and, for example, conducting clinical trials. The skills and capabilities of Polish researchers in conducting clinical trials are very high, and the experience of research centers matches the best in the world.

What are the opportunities and challenges for MedTech and HealthTech start-ups?

A massive growth driver at the macro level is an aging population and rising incomes in societies, which translates into greater possibilities and higher expectations for quality healthcare. The COVID-19 pandemic has further underscored the importance of health. One of the main challenges is the shortage of healthcare professionals, making technologies that streamline their work (from relatively simple solutions that enhance administration to advanced AI-based diagnostic support systems) „worth their weight in gold,” alongside the development of new therapies, drugs, and vaccines. The implementation of innovation can significantly improve the availability of services and the quality of treatment, meeting the growing needs of an aging global population.

I also heartily encourage you to read the first part of the interview: When Team Competence Matters More Than the Idea: What MedTechs Do Investors Choose?

—

Stay tuned for more in the “Health Tech of the Week” series, where we’ll continue to uncover fascinating stories from the world of medical technologies that are changing the face of healthcare. If you’re working on an innovative project in the field of new technologies and medicine or want to recommend an interesting solution, contact us at: [email protected].

So far in our Health Tech of the Week series, I have focused on showcasing innovative Polish startups operating in the medical industry. In the second edition, we are expanding our scope to include the investor’s perspective, which is extremely important for growing companies seeking external funding. Aleksander Kłósek from the YouNick Mint Venture Capital fund talks about what makes a startup stand out to secure financing.

What sets YouNick Mint apart from other funds?

Very often, fund managers come from consulting, strictly financial, or grant acquisition backgrounds. In our case, we are a team with rich entrepreneurial and business experience in various industries—development, pharmaceuticals, and IT. Moreover, we’ve been working together in the field of capital investments for over eight years, which allows us to understand our areas of expertise and allocate our time appropriately to different projects. Each new venture that comes to us is evaluated primarily in terms of its value proposition for customers, its business model, and how well it fits into market realities. Simply put, we think about how the solution addresses existing market problems, who will want to use it, and under what circumstances they’ll be willing to pay for it. We look for solutions that have an advantage embedded in the product/technology, rather than focusing on ventures where the key element of success depends on operational efficiency/execution (such as marketplaces). One of the few Polish VC funds, we are particularly interested in MedTech and BioTech projects. In addition to the business risks typical of other sectors, these require addressing challenges in the clinical and regulatory areas. Specialized knowledge is often necessary, taking into account nuances and dependencies that must be adapted to in the business development strategy. In the BioTech and Pharma segments, it’s also important to understand that the product development cycle is not only complex and costly but also very long (requiring a lot of investor patience! 🙂 However, this patience often pays off—our experiences and successes, especially exits from SmartPharma, PozLab, and Heart Sense, show that investor returns can be very favorable. Our understanding of the sector and solid grounding in this area certainly distinguishes us within the local ecosystem.

What are the main criteria when evaluating medical startups as potential investment targets?

I don’t think what I’ll say will be particularly surprising, but it’s a point so important that it’s worth emphasizing—the team is key. Some investors still place the main emphasis on technology, but at YouNick, we are increasingly inclined to seek the most motivated, experienced, and complementary team in terms of skills. The development of medical technologies is associated with many challenges, not only business or technological but also regulatory, which requires an understanding of the healthcare system, the needs of patients, clinicians, and all market participants. A competent team that can navigate the complexities of many fields is always a good indicator of a company’s success. The second criterion is, of course, the technology or other core innovation that carries potential market advantage. This is especially important for young organizations—startups that cannot compete on price or scale with established market leaders with vast human and financial resources. If we find an attractive niche and possess unique technology, especially one that we can protect with patents or know-how, we have a chance to build a competitive business or product that will quickly gain market traction or appear on the radar of large corporations’ M&A departments.

And the third criterion?

The third criterion is unmet market needs. In the case of medical technologies, we are almost always dealing with a multi-billion-dollar market (globally), where there is constant demand for innovative solutions. Even relatively niche markets (such as rare diseases) are attractive because the cost of therapy is high, especially for „first in class” or „best in class” products. The biggest challenge is immense international competition. Finding a niche substantial enough for the project to build sufficient value and get on the radar of large MedTech or BioTech companies is key to achieving a successful exit for founders and investors. It’s important to remember that what may be a profitable business for the founders may not always meet the expected return on investment for funds.

Does only a large, structurally mature startup stand a chance of obtaining funding?

A fund invests in ventures that have the potential to achieve returns commensurate with the level of risk taken. The fund’s profile determines at which stage it is ready to engage capital. Through the Bridge Alpha by YouNick Mint vehicle, we invested smaller amounts (up to one million PLN) in projects at very early stages of development, sometimes at the concept or initial prototype phase. Often, the team was just forming around the venture based on promising research results or an interesting idea. Investments at such an early stage are often aimed not so much at building a business in the traditional sense but at validating research or product hypotheses within the framework of a Proof of Concept. The assumption should be that among these projects, some will turn out to be „dead ends” and will be closed sooner or later. However, among them, there will be real gems, which after being „polished through subsequent investments,” will develop into full-fledged and profitable businesses. There are more and more such examples in Poland. Through Open Innovation by YouNick Mint (a fund implemented as part of the PFR Ventures program), we invested at later stages of development—in companies that were already generating revenue or had advanced product development. The VC market is open to ventures at various stages of development.

Does the founders’ experience in medical practice matter to you from an investment perspective?

Some teams are stronger technologically, while others were created by practicing physicians and therefore have stronger medical competencies. We neither prefer nor discriminate against any particular team. We want to understand the project’s context well and be convinced that the team operates effectively. Among our portfolio companies, we have individuals who had strictly entrepreneurial backgrounds in other industries. An example is Prosoma, which develops digital therapies supporting the mental health of oncology patients. The founder did not come from the medical world but built a great team that combines the necessary competencies and thoroughly understands the specifics of the field they operate in. On the other end of the spectrum was Heart Sense—a company developing unique solutions to assist surgeons during „bypass implantation” procedures. The innovator is an active cardiac surgeon who identified, based on his own practice in the operating room, the gaps that needed to be addressed to make procedures more effective and safe. Business knowledge and competencies came with time, in the course of executing the project. The risk of failure certainly increases when the founder or group of founders has a narrow (often very specialized) skill set and simultaneously wants to be the „sail, rudder, and ship.” It’s necessary to first acquire external knowledge and then build the right team. The days of Leonardo da Vinci are long gone—it’s impossible to be the „alpha and omega” in everything. Especially in MedTech and BioTech, which diverge from the stereotypical startup vision where all that’s needed for a great venture is a good idea and tech expertise. Here, a team of people who can „deliver” across all areas is needed, as well as a team that is open to and active in change.

YouNick Mint is an investment team managed by business practitioners from Healthcare (pharmaceuticals, medical devices, innovative materials, and medical products) and Industry 4.0 (especially material technologies, ICT, RPA, PropTech), who have been working together for years. Since 2012, the fund has invested in early-stage innovative projects and supports them with the expertise of its specialists. Over this period, YouNick has invested in nearly 50 companies through four funds, completing several exits. One of its recent investments is the Krakow-based biotech company nCage Therapeutics, which is working on next-generation vaccines. Other investments include Prosoma, bioinformatics company Intelliseq, and Lublin-based NK Tech, which supports patients after amputations by offering innovative prosthetic sockets.

Join us for the second part of the interview with Aleksander Kłósek from YouNick Mint VC, which will be published on the blog next week. In it, we’ll cover more on what sets Polish startups apart from the international competition and how regulatory risks influence investors’ decisions.

—

Stay tuned for more in the “Health Tech of the Week” series, where we’ll continue to uncover fascinating stories from the world of medical technologies that are changing the face of healthcare. If you’re working on an innovative project in the field of new technologies and medicine or want to recommend an interesting solution, contact us at: [email protected].

After 8 months of conversations and interviews with representatives of Health Tech companies in Poland, and during a break before the second edition of the series, I share my insights on the communication challenges Polish startups face.

In November 2023, I started the Health Tech of the Week series, aimed at discovering and presenting to a broader audience the most innovative Polish solutions in health technology. This topic was not chosen by chance—we are currently experiencing a real „boom” in new technologies, with reports of breakthrough applications of artificial intelligence appearing daily. While technology can improve daily life, entertainment quality, and save time through optimizations, health remains paramount. Statistics cited by my interviewees often underscored this importance. 

Michał Matuszewski from Ailis, involved in rapid breast cancer diagnosis technology, reminded us that this cancer accounts for about 37% of all cases among women, and data from the National Cancer Registry in 2020 is alarming—it is diagnosed 67 times daily. Other interviewees focused on issues such as insufficient psychological care for children (Calmsie), employee mental health support (HearMe), assistance for children with speech defects (Linghos), sleep apnea (Clebre), or providing basic ophthalmic care where possible (Feyenally). Their business models stemmed from a passion and desire to change the world. 

Working over the past months with numerous startups and talking to experts such as Olivia Blanchard from Health Venture Lab, Jakub Chwiećko from the Medical Innovation Institute, and Kazimierz Cięciak from Comarch Healthcare, I gained a better understanding of the communication challenges faced by startups in Poland. Conversations with investors who work daily with innovative projects in the medical field also made me realize how much still needs to be done in this industry. Here are some of my conclusions.

Is It Too Early? Is It Too Late?

Communicating health-related issues carries a huge responsibility. Startups, as well as those describing their achievements, must remember that every word and promise in the text can give hope. Communication in Health Tech is not just about attracting interest in a product but having a real impact on people’s lives. This is a challenge for companies often still in the testing or clinical trial phase—when is the right time to say we are operational?

Many companies I talked to are waiting for the next edition of the Health Tech of the Week series because they are at too early a development stage. The decision to wait before revealing key information is understandable, especially when it can give a competitive advantage. However, delaying communication can be detrimental. The sooner startups learn the intricacies of media communication, the better prepared they will be for the big wave of interest that will happen sooner or later. When the project goes live, secures an investor, or enters into key partnerships, communication will be unavoidable and necessary for further development.

To properly gauge the moment to start communication, external specialist support can be helpful. An outsider can help indicate when it is worth waiting and which news should be published as soon as possible.

Good Specialists Need Specialists

I was greatly impressed by the knowledge of startup representatives—often from very narrow fields, acquired over many years. Most people creating or managing health startups are practitioners—specialist doctors who saw gaps in conventional healthcare and started their projects. Observing and meeting people who turn knowledge and years of practice into solutions that can have a real impact on others’ health is one of the most wonderful experiences associated with the Health Tech of the Week project. In this industry, it is very evident that behind every success stand competence, competence, and once again, competence. Especially in today’s world, where knowledge and competence are often less important than social media presence and views.

It is worth remembering this when communicating startup activities—the substance and expertise of their founders are their export goods. To translate often very specialized and niche medical language into terms that reach potential clients or investors, cooperation with experienced PR or marketing specialists is essential.

Seizing Opportunities

At the initial stage of business, it is especially important to seize every opportunity that opens up before us. This openness to new projects, collaborations, or contacts is often decisive at later stages of startup operation. Listening to my interviewees, I often had the impression that their actions were prompted by an impulse triggered by one email, a chance meeting, or a private situation that pushed them to act. Sometimes a great project or fruitful cooperation can arise from one such opportunity.

Here, I would like to especially thank the participants of this year’s edition of Health Tech of the Week, who found time not only to talk about their business but also to present solutions that I hope will become well-known: Talkie.ai; SDS Optic S.A.; Feyenally; Calmsie; Linghos; GeneMe Labs; upmedic; HearMe; eOS; Biocam; Ailis; System eCRF finECRF; Locon; CliniNote; Clebre; VR TierOne.

Thank you to all who supported and followed this project, and I invite more startups and companies to collaborate in the autumn edition of Health Tech of The Week.