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.

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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.

In today’s post from the „Health Tech of the Week” series, I present the third edition of the „Mother and Child Startup Challenge” competition, organized by the renowned Institute of Mother and Child. This unique initiative focuses on innovative solutions in healthcare for women and children, offering startups an unparalleled opportunity to spread their wings, test their projects, and gain valuable support.

Mother and Child Startup Challenge – A Challenge for Innovators

On May 14, 2024, the much-anticipated third edition of the „Mother and Child Startup Challenge” was launched. The competition is aimed at ambitious startups and companies that want to bring modern ideas to the medical market, having a real impact on improving the quality of life for patients. This initiative promotes creativity and supports the development of the best projects in the field of women’s and children’s health.

Why Participate?

For young entrepreneurs and medical innovators, this is a unique opportunity to showcase their unique products or processes that can revolutionize the healthcare sector. The third edition of the competition promises a fresh wave of enthusiasm and inspiration, with the chance to present ideas to industry experts. Participants have the opportunity to gain financial support, mentorship, and the potential to develop their business.

Categories and Criteria

In the third edition of the „Mother and Child Startup Challenge,” startups and entities bringing innovative solutions to the broad field of healthcare for women and children will be rewarded. Innovations in the areas of diagnostics, prevention, and treatment of women’s diseases and the periods of pregnancy and postpartum, as well as all fields of pediatrics and improvements in hospital administrative and organizational processes, can be submitted.

Benefits for Participants

By participating in the competition, young companies have the chance to present their ideas and products to renowned experts in the fields of medicine and business. This is an excellent opportunity to establish valuable business contacts, gain new knowledge and skills needed to effectively run their startup.

The third edition of the Mother and Child Startup Challenge is aimed at all startups and innovators who want to bring changes to healthcare for women and children. It is an excellent opportunity to present their ideas and gain support.

Inspirations from the Past

In previous editions of the competition, many outstanding projects that significantly impacted the medical sector were highlighted. For example, the winner of the first edition, Infermedica, was recognized in the World’s Best Digital Health Companies 2024 ranking. Solutions like Infermedica’s Symptom Checker increase patient access to reliable medical information, which is crucial for informed health decisions.

The main prizes in the second edition of the Mother and Child Startup Challenge were awarded to Clebre, Calmsie, TruScreen, and Laserobaria2.0_S.

As promised by the Institute of Mother and Child, the organizer of the competition, this edition will be even more inspiring and full of surprises. What gems will be discovered and utilized for the benefit of patients this time? We will find out soon!

Detailed information about the competition rules and the application process can be found on the website: www.mcsc.pl.

How to Apply?

Don’t wait – apply to the competition and shape the future of healthcare for mothers and children. The application form is available at www.motherandchildstartupchallenge.pl. Submissions for this edition are accepted until June 23, 2024.

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I invite you to closely follow the „Health Tech of the Week” series, where we will uncover more fascinating stories from the world of medical technologies that are changing the face of healthcare. If you are running an innovative project in the field of new technologies and medicine or want to recommend an interesting solution, write to us at: [email protected].

Since November 2023, I have been introducing startups in the Health Tech of The Week series, which have the potential or are already revolutionizing the medical services market by using new technologies. Today, I want to present Health Venture Lab, an international network of healthcare innovation stakeholders, supported by GE Healthcare. Their activities aim to accelerate medical innovations and support their market entry. I invite you to read the interview with Olivia Blanchard, the Managing Director of the organization.

What were the beginnings of your organization?

Our activities started in 2018 with an ambitious vision: to create the first accelerator program, which we named Reactor, operating under the auspices of EIT Health, without equity participation. We began our activities in the form of an intensive training camp, which at that time met the needs of health-themed startups at an early or mid-stage of development. The beginning of our activities coincided with a period when the urgent need for transformation in the digital health sector became particularly visible. This was later further highlighted by the Covid-19 pandemic. We are even more committed to providing innovators with the necessary resources and mentoring support, which are crucial for success in the dynamically changing world of healthcare.

Why did you decide to work for HVL?

I am from France, but my career path took me to Central and Eastern Europe, where I explored local innovation ecosystems and startup policy. Meeting the dynamic team at Health Venture Lab, I was immediately drawn to their mission of supporting innovation, especially in the healthcare sector. Moving from the theoretical concepts I had been working with to a real impact on reality made a huge impression on me. The opportunity to take on a leadership role, especially for a young specialist, was an extremely attractive challenge for me. Joining Health Venture Lab was not only an important step in my career but also an opportunity for personal development and a chance to contribute personally to an inspiring team.

What is the biggest achievement of HVL so far?

During our work, we have had many achievements that can be called milestones in our development. However, the essence of our success is building a wide network and creating influential partnerships. Collaborating with leading academic institutions, such as MIT or the István Széchenyi University of Gyor, shows that we have gained trust and recognition in the industry and academic environment. Such cooperation influences our subsequent activities and drives our mission, which is to develop innovation.

Tell us more about your mission

Health Venture Lab is a global hub of innovation, bridging the gap between startups and the healthcare sector. With foundations in Europe, we want to support local entrepreneurs in their ambitions to change and redefine current healthcare paradigms. Our initiatives, from the Young Talent Program to Catalyst Europe, are strategically designed to build a new generation of innovators interested in supporting healthcare. We now place particular emphasis on using AI in sustainable solutions.

How can Polish startups benefit from joining HVL?

Joining Health Venture Lab offers Polish startups access to a robust international network that includes education and financing pathways. Our achievements, including being recognized as one of the top ten European MedTech accelerators by Sifted in 2019, highlight the credibility and quality of our programs. Partnership with industry giants, such as GE Healthcare, further enhances the value of our offer, providing startups with exposure and unique development opportunities.

At what stage of development should startups join HVL to benefit the most?

We position ourselves as a solution suited for startups at an early or mid-stage of development. Having a solid base and a product at the MVP stage related to Health Tech is the moment when our acceleration program can support such a startup. We facilitate product-market fit and scaling growth.

What do you think are the future directions of health technology and how will the medical services market change?

The future of health technology is an evolution towards more personalized care, using AI to improve diagnosis and administrative efficiency. We expect the medical services market to undergo a transformation towards more patient-oriented care, driven by data analysis and technology.

How do you see the use of AI in the medical industry?

The integration of AI in the medical industry heralds a new era of precision medicine and personalized healthcare. From aiding in diagnosis and treatment planning to streamlining administrative tasks, AI has the potential to enhance every aspect of healthcare delivery. However, realizing this potential requires addressing significant challenges such as data privacy, regulatory compliance, and ethical issues, to ensure responsible and fair implementation of AI technology.

What are the further development plans for HVL?

We plan to further develop our acceleration programs and increase the number of innovators from Central and Eastern Europe. We also aspire to expand our operational capabilities to introduce innovative programs that will accelerate transformations in the healthcare sector.