Flare Capital Partners

📽ICYMI: Our Building for Scale in Medicaid Expert Roundtable is now live on Flare Capital Partners' website: https://lnkd.in/eycEucEH We spoke with five senior operating executives and experienced entrepreneurs to hear their perspectives on Building for Scale in Medicaid. We covered a range of topics, including building trust with Medicaid beneficiaries, what the presidential election means for Medicaid, understanding decision making at MCOs, challenges & opportunities for scaling startups, and plenty more. Below are just a few key moments from our collective discussions: 🤝 Building Trust in Medicaid Adaeze Enekwechi (Cayaba Care): “We meet our members where they are – we meet them in the home, we meet them at coffee shops, we meet them virtually. That in and of itself cultivates trust, you’re not dictating to them how this relationship must be established. Additionally, our navigators are hired from within the community – people who understand you, speak your language, understand the nuances of your community.” Nikita Singareddy (Fortuna Health): “I think it’s important that you earn trust by having a great consumer experience - frankly that's as simple as doing the thing that you say you’re going to do. This is a population that has consistently been oversold, told that you’re going to get X, while actually receiving Y. 🛠 Experience Building in Medicaid Daniel Brillman (Unite Us): “We have been around for 11 years, there are always going to be headwinds. There are always going to be massive problems to solve, they are just going to change. Our vision and mission, for 11 years, hasn’t changed – how we’ve gotten there and navigated through that, of course, will continue to change.” 💸 Understanding Buying Decisions at MCOs Karen S. Amstutz, MD MBA: “Each managed care company has a different approach to how it vets the vendors or how they contract with providers, so you have to take each organization and ask yourself – is this an organization that is looking at things nationally first and then move to local adoption? Or the opposite, let the local plan pilot this and if it’s successful then we’ll think about how we go nationally?”   A very special thank you to all of the extraordinary executives and entrepreneurs who joined us for this important conversation: Chris Palmieri (Commonwealth Care Alliance), Adaeze Eneckwechi (Cayaba Care), Nikita Singareddy (Fortuna Health), Dan Brillman (Unite Us), Karen Amstutz, MD MBA! 🗓 What's next you ask? Mark your calendars for our next Expert Roundtable Series on Tuesday, December 3rd at 12:00 PM ET. We will explore the topic of Longevity in Focus: Innovating for a Longer, Healthier Life. Sign up here: https://lnkd.in/ehSpqdXd

I had the privilege of attending and speaking at the GuideWell + Flare Capital Partners AI Conference last week in Jacksonville, along with fellow industry leaders, Chris Lehane, Michael A. Greeley, Bryan Koch, Tarun Mehra & Ben Hall. Here are my top five takeaways from the event: 1. The pace of AI advancements, particularly from OpenAI and others, is astonishing. We've quickly moved from predictive models (ChatGPT's original LLM interface) to more advanced reasoning models like O1, which have the potential to reshape the way we even think about applying AI across various industries. 2. The real transformation will come as we approach level 3 with agents capable of managing complex tasks, ultimately reinventing how we currently do things. 3. For AI in healthcare, outdated regulatory frameworks in the US such as HIPAA will likely prevent ecosystem-wide adoption in the near term. Privacy and PHI remain important to preserve, but we will need to modernize the way we use the data, preserving the privacy that is most important to us. 4. Healthcare is generating over 30% of all data available, yet our ability to utilize this new resource is currently quite limited because of outdated regulatory frameworks. 5. The AI opportunity in healthcare is there for those who pursue creative solutions and novel applications. Organizations with this mindset will create immense value for the industry at large.  Special thank you to Florida Blue for the invite and look forward to participating in this important conversation again in the future. #AI #Healthcare #Innovation #DataTransformation

What an incredible turnout at our Waffles & Women’s Health Breakfast to kick off the Women’s Health Innovation Summit here in Boston! 🎉🥞 We were thrilled to host this amazing group of women's health-focused founders, investors, payors, and industry leaders who joined us bright and early to reconnect with familiar faces and build new connections over waffles and coffee. ☕ It was the perfect way to kick off a day dedicated to advancing women’s health innovation! A huge shoutout to the hosting committee, Alyssa Reisner and Krishna Shah (CVS Health Ventures), Madeleine L. (Thirty Madison), Nina Kandilian (Silicon Valley Bank), and Uma Veerappan and Tara Sullivan (Flare Capital Partners) for making this a success! #WomensHealth #Innovation

Flare Capital Scholars are a cornerstone to the Flare Capital Partners platform, bringing breadth and depth across the entire healthcare industry. As we enter the program's 10th year, we look back and celebrate the successes and notable accomplishments of our Scholar alumni. Each year we recruit stellar graduate students and industry rising stars to join us for a year-long professional development program designed for aspiring healthcare leaders, technologists, and mid-career executives to gain firsthand knowledge of the healthcare technology and venture capital industry. With 370+ alumni from the world's leading graduate programs and healthcare institutions, many go on to join founding, operating, and investing roles at top-tier industry organizations. Check out our Flare Capital Scholars Alumni by the number!

Wonderful summary of Flare Capital Partners healthcare AI funding and ROI analysis from American Hospital Association: https://lnkd.in/ey7rhZhK Full Article: https://lnkd.in/epT2-Xmm

In health tech news: Does the health care AI investment hype translate to value? Plus, Tom Insel talks telehealth apps, and Abbott’s over-the-counter CGM hits the market. https://trib.al/HiEYeWK

Venture capital firm Flare Capital analyzed more than 4,000 healthcare AI venture capital deals.

Flare Capital Partners released data on more than 4,000 healthcare AI funding deals from 2014-2023. I spoke with Parth Desai about what they found. “We did research because we were thinking, ‘Where is AI immature? Where is it more mature?’ and ‘Where does it have the greatest potential to create value?’ The end result was this, which we're hoping is going to be a road map for enterprise buyers and also builders that want to target different areas of these enterprises to build new AI companies." - Desai https://lnkd.in/efwEgUTw

📊 Our investment team at Flare Capital Partners curated a proprietary database including 4,000 healthcare AI venture capital deals across 10 years of funding history. So why did we do it? To separate hype from reality and understand where AI is actually creating value in healthcare. As technology rapidly evolves around us, we hope the insights gleaned will help to inform where to focus future AI efforts. 💡Here are a just few things we learned. Check out the link below to read more. 1️⃣ Healthcare’s AI Hype Cycle Peaked Over the Last 3 Years 💫$60B of capital raised since 2014, though 54% of that has come in the last 3 years (2020-2023) 2️⃣ In 2023, the Frenzy Cooled; We Are Entering a Period of More Rationalized & Focused Spending 💫AI/ML deals were 53% of all digital health deals in 2022, but dropped to 41% in 2023, the lowest percentage in the last 5 years 3️⃣ Life Sciences and Health Plans Convert Capital to Value More Efficiently than Health Systems 💫While only 5.2% of health system AI startups successfully reached maturity (Raised Series C or Later), 16.1% of health plan AI startups and 9.2% of life sciences startups reach maturity 💫The step up in average valuation between Seed and Mature stage life sciences AI startups is over 84x, which is 1.4x as large as health plan AI startups and almost 4x as large as health system AI startups 4️⃣ Health System Financial Operations and Patient Engagement Are the Most Enduring AI Value Props; Clinical AI is the Most Hyped Category but Has Actually Eroded Value 💫AI solutions targeting revenue cycle management, patient scheduling and intake have maturity rates of 11-20% (2-4x the health system AI average), and mature AI startups in these categories have seen their average valuations steadily rise over 10- 5- and 2- year periods 💫Clinical AI solutions have attracted over 50% of all capital to health system AI startups ($11.5B), but maturity rates are closer to the health system average (6-7%), and mature stage valuations have actually fallen over 10- 5- and 2- year periods 5️⃣ Health Plan Value-Based Care, Network Management and Member Engagement / Navigation Are the Most Hyped as well as Enduring AI Value Props 💫AI solutions targeting these value propositions (particularly care management, risk adjustment, network design) have attracted the most capital, commanded the highest average valuations and have achieved maturity at a higher rate than other categories 👉📄Read the full article here: https://lnkd.in/eYVU54uz #AI #healthcare #healthtech #fundingdata #AIvaluations

Ripped From Italian (Venture Capital) Headlines… What an unusually complicated time to have been in Italy. Front page headlines for the last ten days of August chronicled the tragic sinking of the Bayesian super yacht. The public’s fascination – and puzzlement – with the circumstances of how a storm could topple such a vessel just off the northern coast of Sicily continues weeks later. But every day, significantly less impressive boats are capsizing, overloaded with migrants fleeing Africa and the Middle East. Those headlines, if there are any at all, are buried deep in the newspapers. The Italian Interior Ministry estimates that 155.8k migrants arrived in Italy in 2023, a marked increase over the 103.8k in 2022.   In addition to immigration issues, the economic conditions are mixed and deteriorating. This has impacted the Italian venture capital sector which saw just €400 million invested in 71 companies in 1Q24, which was effectively flat over 4Q24 levels. Well over half the activity was directed to Late-Stage while Early-Stage accounted for approximately 10%, according to Pitchbook. The three most dominant sectors were B2B, B2C, and IT, which collectively represented over 85% of the deals closed in 1Q24, with the Healthcare sector accounting for just under 10%.   Other observations on the Italian market… https://lnkd.in/e9rxymVV Flare Capital Partners #digitalhealth