Sage Growth Partners Publishes New Survey Findings on Healthcare Venture Capital
BALTIMORE, Nov. 11, 2019 /PRNewswire/ -- The U.S. healthcare market saw a 14.4 percent increase in mergers and acquisitions from 2017-2018, fueled by soaring domestic venture capital investment – an all-time high of $130.9 billion invested in U.S.-based startups in 2018 alone. Compounding the pace and complexity of deal flow are sweeping industry trends ranging from managing and measuring health outcomes to reducing the overall cost of care.
Given this ripe environment, Sage Growth Partners (SGP), a Baltimore-based healthcare research, strategy, and marketing firm, conducted a market survey to gauge the relative priorities and attitudes of investors and CEOs of U.S.-based healthcare companies.
Access the full report here. Key findings include:
Investors want to help CEOs run the business – but CEOs value this less than other benefits
Investors are looking to mitigate risk
People come first: investors and CEOs both value proven teams with a track record of success
“Business opportunities in healthcare today are driven by two key factors – the industry’s widespread waste and inefficiencies, and public and private sector mandates to reduce costs while increasing health outcomes,” said Dan D’Orazio, SGP’s CEO. “As a result, there is an abundance of potential partners and investment capital. It’s not surprising that investors and CEOs don’t completely see eye to eye on the perceived benefits of venture capital investment. However, they will have to find a way to successfully overlap their needs to benefit from the most valuable resource in their arsenal – the people.”
Sage Growth Partners engaged 30 investors who have provided capital to healthcare companies at stages ranging from seed to buy-out; each had made at least one, and upwards of five, investments in the last 12 months. Also surveyed were 30 CEOs of healthcare companies, of whom half received funding in the past 12 months; the last round of funding received by the group of CEOs spanned from $250,000 to $100 million. At the conclusion of the survey, SGP made a donation to the Johns Hopkins Children’s Center on behalf of respondents.
About Sage Growth Partners
Sage Growth Partners accelerates commercial success for B2B, B2B2C, and B2C healthcare organizations through a singular focus on growth. The company helps its clients thrive amid the complexities of a rapidly changing marketplace with deep domain expertise and an integrated application of research, strategy, and marketing.
Founded in 2005, Sage Growth Partners is located in Baltimore, MD and serves clients such as Philips Healthcare, Quest Diagnostics, Hughes and Company, Olive, It’s Never 2 Late, and Noro-Moseley Partners. Visit us online at www.sage-growth.com.
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SOURCE Sage Growth Partners