Who We Invest In at Inflect
by Dr. David Feldman
What makes us choose a team? We ask: are they passionate? Who are they and why are they working on this? And do they have what it takes to succeed?
Inflect is the innovation and investment arm of Vituity, a national physician partnership dedicated to improving lives. We are 100% physician-owned and deeply rooted in being physician-led.
We at Inflect are working physicians and subject matter experts, drawing from 45 years of healthcare operational experience — and dedication to the patients, families, and communities we serve. We invest in each to bring new technologies to bear that benefit all stakeholders in healthcare — patients, families, physicians, providers, and healthcare clients.
So we operate a bit differently from traditional VC, PE or angel funds — we’re somewhat like a VC, but our success metric is better health outcomes rather than sky-high returns by a hard date. I’ve explained how we look at the startup space. But for this post, let’s focus on the core of any startup: What kind of founders and what kind of ideas do we want in our portfolio?
A talented and diverse team
It’s well-established that diverse and inclusive teams yield better outcomes. At Inflect and Vituity, diversity and inclusion are important core principles we believe greatly improve our impact in healthcare, enabling us to better serve our patients and meet our mission to improve lives. This belief extends to our investment thesis and who we seek to partner with.
“Diversity significantly improves financial performance on measures such as profitable investments at the individual portfolio company level and overall fund returns.”
– Harvard Business Review.
When we talk to founders, we listen for signs that investing with them will succeed for the long term. What’s their vision, of course. But beneath that, what are their pillars to support it, and their tactics to implement it? And do we feel they’re driven by the right things? What are they like personally — do we find ourselves wanting to have coffee with them? We ask founding teams about what led them to where they are, but we’re not looking for milestone accomplishments, so much as we are a sense of honesty and sincerity about their work. which makes us not only willing, but eager to work with them.
We also look for leadership qualities. Who have they brought on as their team, and why? Do they talk up that team, the way a good doctor credits and praises their nurses? It’s hard to quantify, but we have experience at recognizing a standout founder when we talk to them.
Beyond the great idea: A checklist
A great idea is not enough. Leveraging our industry experience, national healthcare footprint, and investment track record to help take your great idea to the market and thrive.
When evaluating a startup idea we recommend asking these questions which we also ask ourselves:
Does the world need it?
- What job are you doing? Tell us your vision and mission.
- How much value will this create?
- For whom will it create that value? (At Inflect, we seek ways to distribute value to all stakeholders in healthcare, not just one of them.)
Would someone pay for it?
- How would you capture the value you create?
- How would you distribute it?
Are you and we a good fit?
- What value would Vituity / Inflect bring to your company?
- What value would your company bring to Vituity /Inflect?
How would this transform healthcare?
- What does it do to improve patient care?
- How does this impact our burnt-out workforce?
How I look at startups!
Along with heading strategic technology partnerships for Inflect I continue to work several shifts a week as an Emergency Room Doctor. It helps to keep the big picture in mind.
Another personal insight: The Infinite Game is a book I highly recommend, because it aligns with our view of Inflect’s mission. This isn’t a finite game with a timer or a finish line. There’s no deciding point at which we’ve either won or lost. Healthcare is an ongoing game every day that will never end — instead it will keep evolving as we go.
So when I look at founders, I want people who feel they’ve also found their ikigai — a purpose in life that motivates them. You may have seen the diagram that shows this as the intersection of what you love, what you are good at, what the world needs, and what you can get paid for.
Next steps: Talking to us
Does all of the above resonate with you and your team? If so, don’t worry about your deck too much and don’t look to practice your pitch elsewhere first. We’ll get you. Talking to us sooner than later worked for TRIPP and Sparta Science, and could work for you. Email us at hello@inflecthealth.com, check out our website and connect with us on LinkedIn.
Dr. David Feldman is Head of Strategic Technology Partnerships at Vituity, where he oversees the formation of partnerships between Inflect Health and cutting-edge Health Tech startups. In addition to being the Head of Strategic Technology Partnerships he also serves as a Vituity Senior Partner and serves as the Medical Director at a hospital within his local community. In addition, he has experience as a startup CEO, Angel Investor and Venture Advisor over the last 15 years. He holds a bachelor’s degree in biology from UC Irvine, an MBA from UCLA’s Anderson School of Medicine, his MD from UCLA’s Geffen School of Medicine and is a graduate of Harvard Medical School’s Massachusetts General Hospital.
