Optimizing Growth: Executive Search for Early-Stage Digital Health
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Silicon Valley Bank’s Healthcare Investments and Exits reportnoted that funding for early-stage Digital Health companies was slightly higher in 2022 than it had been in 2021 – a year that was atypical in terms of just how much money was raised. Strong showings from venture capital are part of the explanation for the early-stage uptick; the report notes that nearly $22 billion in new VC funds was generated last year for this sector, not far off the $28 billion raised in 2021.
It’s encouraging, therefore, to see early-stage companies continue to attract funding. Although they now are having to focus more of their attention on new hires particularly with investor pressure for revenue generation.
Within Venari Partners’ Healthtech practice, we’ve noticed a shift over the past few years – particularly in working with seed and Series A companies. Early-stage has garnered significant investment.‘In fact, if you put it as a full-year number, it’s actually the highest it’s ever been’, saysJonathan Norris, business development MD atSilicon Valley Bank. Norris points to the reasonable valuations and ability to plan ahead in this field that have made it attractive to investors.
Last year, we saw an increase in demand from early-stage companies, as well as their investors, in exploring our services and working with us on new hires – not just for C-suite talent, but also at VP and Director level. Particularly commercial roles (including sales, marketing, customer success, and others), are all linked to the drive for increased revenue generation and profitability across the sector.
It is worth noting that seed and Series A companies have, historically, been slow to consider using Executive Search companies. Whether this is due to concerns around cost, structure, or trust, for one reason or another we’ve seen less engagement from early-stage companies – until recently. I’m pleased to report that we have built some very strong relationships with many early-stage founders and have established mutually beneficial arrangements.
For instance,Ed Likovich, CEO ofNymbl Science, admits that they hadn’t considered using Executive Search before Venari Partners was recommended to him. ‘Given the time-consuming nature of recruitment, particularly when you’re involved in fundraising, we found it hugely beneficial to outline our needs to Cristian and the team, letting them manage the whole process,’ he notes. ‘As a result, we hired an excellent Executive – and all within a matter of weeks.’
It is valuable for healthtech companies at this phase of development to have an outside influence on their side to help with communicating their brand and selling their story. It can be especially difficult for new and/or growing early-stage companies to attract the best talent unless they are particularly proactive.
At Venari Partners, we assist early-stage healthtech companies in the following areas:
Executive Search
Commercial Team Talent Mapping
Diversity & Inclusion
Compensation Benchmarking
Interim/Fractional Talent Solutions
I would urge any early-stage Digital Health companies looking to scale effectively to consider using an Executive Search firm.
Tags:
- Insight
- Executive Search
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Cristian joined Venari Partners in 2019 and is a core member of the Life Sciences & Healthcare practice. He is hugely passionate about the Digital Health space, and the partner of choice to many emerging and high-growth HealthTech companies across the US & Europe. With over 6 years of experience headhunting global leaders within the Digital Health industry, Cristian helps organisations identify, attract, and retain the best Strategy, Business Development, Operations and Commercial talent around the world. Typical growth scenarios he supports include: - US GTM Expansion for European HealthTech companies - Commercial buildout, due to successful fundraising or product launch (US or EU) - CEO selection to replace a Founder who is looking to transition into a CTO/NED role. - Board level appointments Chairman, non-executive advisory etc. Retained executive recruitment is a core discipline, but the team is also equipped to provide expert Diversity, Equity, and Inclusion (DEI) mapping solutions, Interim & Consulting solutions, Board Advisory, Market Mapping, Compensation Benchmarking, and Leadership & Organisational Assessment. Outside of Venari Partners, as a former chef, he has a tremendous passion for food and loves to experiment with cooking and eating as many different cuisines as possible.
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