Healthcare Ventures: Maximizing Impact with VC Coaching

Published on April 16, 2024

It could be argued that VCs are the most critical purveyors of innovation in the start-up world. It’s nearly impossible for a company to produce anything new without proper investment. 

Venture Capital contributes billions toward innovating biotechnology and medical within healthcare and continues to be essential, making venture capital practically synonymous with healthcare advancement. Without the capital, virtually nothing would happen.  Just as companies benefit from the investment of a VC, a VC stands to benefit from someone investing in them. Not with money but with time and wisdom. That’s where Executive Coaching comes in.

What Is Executive Coaching?

Executive coaching isn’t just for the C-suite; principles applied to training CEOs and COOs are also applicable to Healthcare Venture Capitalists. Executive coaches act as your personalized guidepost, pointing you toward productivity.

Most VCs have a natural gift for investing, but that doesn’t mean they still can’t up their game with a coach’s ability to accelerate and fine-tune those innate skills. They are laser-focused on optimizing strategy through positive guidance with a touch of austere advice. Coaches clear your headspace from noisy distractions and filter out conflicting ideas, negativity, and choices that may deviate from the ultimate goal. 

Executive coaching is leveling up venture capital. Just look at how executive coaching worked for medication management startup MediSafe. They raised $14.5 million, which helped expand market reach and user engagement. They attribute a large part of their success to coaching.

How Does Executive Coaching Help the Healthcare VC?

Like in sports, having a mentor or a coach in business makes winning more accessible. Executive coaching isn’t simply transactional; it helps you get the lay of the healthcare land by carefully navigating the many intricacies within a fluctuating industry. They turn ideas into actionable strategies.

Having an executive coach’s handprint on a portfolio guarantees that growth objectives are well-highlighted and showcase competitive advantages. They streamline screening time for deals by narrowing down your niches and developing a well-focused value proposition. With the help of a coach, a VC will also know when it’s the right time to seize an opportunity to scale.

Coaches help save time, too. Venture capitalists can spend endless hours navigating ever-changing regulations, laws, and policies to stay compliant. Coaches can often leverage their networks to elicit vital feedback and open up channels of communication within regulatory agencies, arming VCs with the most current and relevant data needed to pitch and address concerns regarding patient safety and data privacy.

Other areas Executive Coaches specifically assist a healthcare VC with include: 

  • Assessing New Tech like AI: New technologies, by nature, develop quickly. It takes a competent team to assess the new services like electronic health records, e-prescribing, and telemedicine. 

AI has burst onto the scene in the past year and affected nearly every business sector. Healthcare is no exception. Moving forward, expertise in troubleshooting AI usage policies and excessive amounts of medical data will be paramount.  

  • Compliance and due diligence: There is heightened scrutiny of private equity within the healthcare sector at both state and federal levels. Coaches can help mitigate potential adverse outcomes through risk assessment. They apply their most up-to-date expertise of current laws when considering new tech which not only protects the VC but ensures the safety of patients, and providers.
  • Funding: Amid the recession, investors have become increasingly cautious. Coaches guide VCs through economic downturns. They help overcome this by analyzing financial projections and narrowing down target markets and firms that present the most promise.

What are the Results?

There is certainly measurable gain with executive coaching. Many companies enjoy increased revenue, improved employee retention, and meet goals and quotas more regularly. However there is one thing, not easy to quantify, but perhaps vastly more important; The value of confident and strong leadership. 

Coaches curate a plan to help healthcare VCs cultivate the critical thinking required to maximize results and elevate their executive presence. The result is concise decision-making, confident and compelling communication of the mission, and exceptional problem-solving skills. VCs lead with more clarity, a trait valuable to providers, other investors, and stakeholders. Focusing on executive presence improves the acquisition and retention of exceptional talent, increases productivity and revenue growth, and makes VCs more appealing to disruptors in the healthcare sector who are thinking outside the box. 

As unbiased sounding boards, coaches are invaluable confidants. They won’t hold back on giving you straightforward feedback but do so without judgment and instead with a personalized touch that leverages their experience to instill best practices into your management strategy while also requiring the VC’s accountability and personal perseverance.  

What’s Next?

Staying ahead is the name of the game in 2024 because competition will be stiff. EY Pulse predicts that many more competitors will be actively investing due to the 70% of CEOs planning to increase venture capital funds. Executive coaching ensures you’ll rise above the rest. 

It’s beyond assistance; it’s a partnership personalized to fit the VC’s needs while educating, collaborating, and creating a lasting, sustainable foundation to stand on through the ever-shifting healthcare landscape. An executive coach will be with you all the way to the finish line, providing you with the guidance, resources, and confidence it takes to cultivate successful investments.

Duane Lisowski is a Grit Daily Leadership Network member, a strategic advisor, healthcare executive, and professional coach.

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