Strategics in Digital Health Index

For healthcare startups seeking private investment, there are more sources than ever. But there is also more peril. Traditional routes, like venture capital and angel investors, are joined by corporate venture capital, a broader array of grant opportunities, venture philanthropy, crowdfunding and beyond.

Corporate venture capital has become particularly popular. But there isn’t as much critical information about corporate investors and their strategies. Which is the most trustworthy? Which is the best to partner with? Which one would you never do a deal with again? That’s why Lake Whillans partnered with MedCity News – the leading online news source for the business of innovation in healthcare – for independent research about corporates and their practices. MedCity News reached out to its 400,000 monthly readers, and more than 160 healthcare innovators familiar with corporate firms shared their insights.

Something fascinating happened when we dug into the “trust” responses in our survey. It seems the more someone worked with these organizations, the less they trusted them. For all respondents on the issue of trust, the mean rating (on our four-point scale) for corporate venture funds is 1.97.

However, for those who have firsthand experience, the average score is 1.82. On the other hand, for those who know these corporates by reputation alone, the average score is 2.06. It would appear that deeper familiarity does not correlate with positive perception.