I receive calls daily about the TEN Investor Syndicates- in particular the healthcare syndicate. For those raising funding or interested in investing in healthcare startups and growth companies, here’s more information about their investing criteria.
Revenue- The company needs to have more than a $500K annual revenue run rate. Typically, the investors want $1M revenue but the exits in the healthcare space tend to outstrip everything else that the investors will engage earlier than usual.
Growth is king- you must have a growth story. The investors monitor the progress of the startup over two to three months to see the momentum and traction. As the saying goes, investors don’t invest in “dots”, they invest in “lines.” Huge forecasts don’t count for much unless they are grounded in some historical reality.
Proven team- if this is your first go-around it’s going to be tough. They want someone on the team who has been there and done that at least once.
Competitive Advantage- They are going to ask about your competitive advantage and a handful of patents will not suffice. You’ll need a competitive advantage that either gives you a 30% increase in revenue over the competition or a 30% reduction in cost.
Many of the members of the healthcare syndicate are physicians so they understand the applications and the space very well. They evaluate deals from the physician’s point of view and ask how does this make the physician’s life easier and how does it profit the physician.
In summary, the TEN Investors look for a growth story underway and:
- $500K revenue run rate
- Strong growth rates
- Proven team
- Competitive advantage
If you meet these criteria, please contact TEN Capital, and let’s start a discussion.
Hall T. Martin is the founder of TEN Capital and a builder of entrepreneur ecosystems by startup funding through angel networks, funding portals, syndicates, and more. Connect with him about fundraising, business growth, and emerging technologies.