The proliferation of AI in longevity business models can sometimes be overwhelming.
Deciphering fact from fiction, form over function, is something even the most savvy institutional investor will have a hard time with. What exactly am I investing in here? I hear it often. From trusted VC’s and PE firms focused on digital health and AI business concepts, analysts groomed at McKinsey & BC scratching their heads trying to figure out what exactly to evaluate.
Here are a few key ingredients to consider when making these types of evaluations on behalf of your investment community;
- Data Warehouses are only as valuable as the quality and quantity of unique data sets they hold. In other words, unless you can identify at least 10,000 unique patients/private members with paid subscriptions to your “super cool” UI/UX web platform or Apple iOS App, you’re not there yet!
- Retention. Has the business model de-risked for retention of paid clientele? Cue 23nMe…Are we talking 1x hit and then walk away or is there stickiness like Ro?
- Leadership. Doesn’t matter how great the Python engineers are if they have no direction.
- What’s the mouse trap measuring? In other words, be it virtual clinic or expansive bricks and mortar, what exactly are paid subscribers being measure for? Does it have clinical efficacy and solid medical backing. Often times, I find these amazing young entrepreneurs from Silicon Valley or NYC with energy and spirit, but they take for granted a physician’s importance to their business model. Seeing them more as widgets rather than key components. Take the time to build your medical advisory committee. Give them skin in the game, make them an integral part of your executive committee. Place them on boards not just for looks but for substance.
- AI tools are a plenty. Whether voice assisted or static. The service you provide to your customers will go a long way if you stay focused on personalization. Bespoke and curated. AI can help decipher decisions and provide efficiency but siphoning through the data to come up with recommendations around schedules, logistics, navigation, & coordination. Be careful with actual medical decision making…steer clear of that for obv reasons.
TL;DR Longevity movement and momentum is here to stay. AI will exponentially drive investment within our white hot sector. Focus on the essentials, that being your customer. Never lose focus on what matters most.