Alex Fair of MedStartr's talk at Stanford's MedicineX conference 2013

1. Healthcare Revolution
by Alex Fair, CEO MedStartr, Inc.
09.28.2013
MedicineX
MedStartr.com | MedFundr.com @alexbfair | @MedStartr#MEDX

2. Geek
to
Freak
to
Hero
#Geek2Freak2Hero#MEDX

3. We are not just any Geeks
We are patients, engineers, scientists, doctors, policy
experts, hospital leaders. We are Health Geeks.
Hey Alex, I’m also a
Fashionista!
Indeed you are Jen, the only person I
know who reads books on string
theory and vogue in same plane trip.
@endogoddess
@LewCardia

4. And we don’t control anything
Not the PayPal Mafia

5. We do our jobs and see problems

6. And Imagine Solutions
But we also get
ideas, Ideas we want to
make happen to fix the
problems we see in
healthcare.

7. Healthcare Innovation is
more difficult due to
regulations and aversion to
adoption
…and predicting Success
in Healthcare is difficult…
THE PROBLEM WE SOLVE
which constrains capital,
which limits innovation,
which makes healthcare less effective

8. And our Ideas aren’t usually a
widget, something simple to buy
@alexbfair#MEDX

9. It doesn’t usually get sold to
consumers (patients)
@MedStartr#MEDX

10. …and you generally need an expert
to install it
Image courtesy of Policymed.com

11. …aAnd no one, especially the patient
thinks they should pay very much for it

12. …and it costs like a billion dollars to
do anything of value

13. There is funding, but as consumers and doctors, Healthcare leaders, and the
general public, we generally have No Say in what gets funded.
NIH Grants, $30.9
Pharma R&D
Investment,$49.5
Foundations/
SBIR, $3.0
Venture
Capital,$8.5
Approximately $100B is Invested to fund
Healthcare Innovation in U.S. Annually
Sources of Funding For Healthcare Innovation – 2011 ($B)
Venture Capital
 Of the $8.5B invested in 2011, 19% ($1.6 billion) was invested in first
or seed round investments and 81% ($6.9 billion) was invested in later
stage projects
 Of the $8.5B invested in 2011, 14% ($1.2 billion) was invested in
healthcare IT investments and 86% ($7.3 billion) was invested in life
sciences
Excludes: Angel investments, No detailed backup to foundation capital invested in early stage projects.
Foundations
 A variety of foundations offer funding for early stage healthcare
innovation, mostly focused around disease groups
 In 2011, Susan G Komen For The Cure, one of the larger research
funding not-for-profits had 2011 revenue of $358 million, but after
fundraising expenses and administrative expenses only spent $283M
million on programs (79% margin)
NIH Grants
 Largest institutes are the National Cancer Institute which consumes
16% of NIH funding ($5.1 billion) and National Heart, Lung, and Blood
Disease which consumes 10% of the NIH funding ($3.0 billion)
 NIH budget expected to contract due to government debt pressures
and expected decline in national spending
Excludes angel investment; approximates foundations

14. But we MUST try, because people will continue to be
unhealthy and even die for preventable reasons if we
don’t.

15. So we continue, fueled by the desire
to help others with our mad geek
skills.
@alexbfair#MEDX
Can we get a new definition
for “Mad Scientist” please?

16. And we are not powerless
Alameda Health system is funding their community teaching
program on www.MedStartr.com – go check them out!

17. When People Stand Up
Revolutions Happen
When citizens get involved and
activated, massive change is enabled.
Crowdsourcing innovation and Crowdfunding
their ideas is changing the world.

18. What Happens When You Engage Crowds that
Care
• Funding – Investors look for traction among KOLs and
constituent institutions and patients
• Partners – Where Corporate Innovation Officers shop
• Publicity – weekly News Stories and three television
interviews in our first six months
• Community – Feedback, Clinical Centers, Trials, Support,
Beta Testers, Distributors, and more
…but this is just the beginning

19. Rev.1. How to Code a Revolution in
Healthcare
(the @FredTrotter / DocGraph story)
@alexbfair#MEDX

20. 1: Get a Crazy Idea
…that just might work
@fredtotter
#MEDX

21. 2. Run it by some friends
(designers, doctors, programmers, nurses, artists, investors…)
…until you prove it does

22. 3. Ask a crowd that cares to back it

23. …and they
ask a crowd,

24. …and so on,

25. …and so on,

26. …and so on,

27. And then…
You may actually get a hospital to sign up
But who cares?
Ok, that’s a little harsh and unfair of me, I should really avoid comments like that. I let it
stand and said it in the first place because we have seen so many innovators and early
adopters step forward and adopt new ideas but very rarely do we see hospitals. We can’t
help them get better if they are not willing to be helped and it gets a little frustrating. We
invite all Hospital leaders into the conversation though, please comments below, or email
InnovativeHospitals@medstartr.com

28. Because you already have:
Customers
Partners
and Funding

29. And who
wants a term
sheet?
When you
can have a
bill of sale?
Again, I am being a bit harsh, this time on Angels
and VCs. Sorry about that, it’s just that after
dozens of bad experiences, it seems like this is
an industry that needs help being more efficient
about finding the best companies and getting the
right match of investor to idea could use an
upgrade. This is why we are building
MedFundr.com, Request access to the alpha at
MedFundr.com

30. Fred Trotter/ NotOnlyForDev
Results:
• Eight Weeks
• $45,011 Raised
• 113 Patients, Doctors,
Nurses or Health Care
Pros
• 24 Partners
• New de facto standard in
health data
• and a new approach…

31. Serial
Crowdfunding
of
Entrepreneurship!
Projects live on
MedStartr now!

32. Partners Stepping Up
Companies that are partnering with crowdfunded projects on
MedStartr.com
Over 100 Partnerships Startd

33. Rev.2. Partners Driving Innovation
• Challenges
• Open Innovation Programs
• Grants
• Pitch Days
25% of the Robert Wood Johnson Day
Pioneer Pitch Day projects in 2013 are
MedStartrs (including MedStartr itself!)

34. -
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
Inside
Govt
Rock
Outside
Cost Per Idea Cost Per Solution
Open vs. Closed
– In-House (2012, Fortune 100
Company)
• 50M cost
• 2 outside design vendors
• 18 Months
– Open Innovation Challenge CMMI/
CMS
• 8,500+ ideas submitted
• 900M offered
• 3 Months
– Public Open Challenge: Rock
Health:
• 800+ ideas submitted
• 1.3 M/ 100K offered
– Outside Customer Challenge
• 10K offered
• 1,000s of submission from
customers
Dollars
@alexbfair#MEDX

35. Crowdsourcing Innovation
This was a challenge we ran that worked out three times better than
expected due to massive exposure our methodology drove. Some
great ideas were sourced by this program! See it at
www.MedStartr.com/CrowdsCare
Learn more at http://about.medstartr.com/challenges

36. Tech
•Crowdfunding
•Challenges
•Social Media
Awareness
•Strategy
•Outreach
•Design
Operations
•Setup
•Management
•Support
Experts
•Optimization
•Mentors
•Partners
Engagement
•Customers
•Communities
•Live Events
How Your Crowd Drives
Crowdfunding with an Open
Innovation Ecosystem

37. Get Help From: Dr. Howard Luks, Regina Holliday, Sutha Kamal, Kim
Whittemore, Eythor Ernstson, Donna Usiskin, Eugene Borukovich, Dr. Jen
Dyer, Steve Greene, David Williams RN, Paulo Machado, Dave Chase Fred
Trotter, and many more
Mentors get involved, becoming advisors, early
adopters, investors, or champions driving our client’s success
Results: Crowds Drive Massive Exposure

38. Get Help From: Dr. Howard Luks, Regina Holliday, Sutha Kamal, Kim Whittemore,
Eythor Ernstson, Donna Usiskin, Eugene Borukovich, Dr. Jen Dyer, Steve Greene,
David Williams RN, Paulo Machado, Dave Chase Fred Trotter, and many more
Mentors get involved, becoming advisors, early adopters,
investors, or champions driving success
PR
Design
Copy BizDev
Partners
IP
Strategy SoMe
Legal
Capital
Events
Uber Geeks Get Involved to Power
Ideas

39. Rev.3. Let Patients Lead!
@ReginaHolliday

40. Regina Holliday is
one of our true
heros in healthcare.
She dealt with the
grief of losing her
husband Fred and
her anger at how the
healthcare system
failed him first by
painting a 70xf17
foot mural in
DC, and then by
painting the back of
hundreds of suit
jackets for people
transforming
healthcare. Now
she hangs ot with
Presidents and is
helping drive change
faster and better
than ever. Thanks
Regina for all you do
and for being on our
Board!

41. #TheWalkingGallery Film
• $13,175 in 4 weeks from
Doctors, patients, Medical School Leaders
• Film produced and distributed to increase
awareness of Patient perspectives in all
communities
Partnership With Patients
• $18,165 in 6 weeks from
Doctors, Patients, and Cerner Sponsored in
Kansas City
• Created a conference to promote Physician /
Patient Partnership

42. Sarah Kucharski
FMDchat 501c(3) formed to
help people suffering from
a rare disease @FMDChat
Great Example of someone
going from Geek to Freak
to Hero by owned her
condition and building a
community

43. Michael Weiss
• Crohn’s Disease Warrior Patrol 501c(3) formed to help people
suffering from Crohn’s, Colitis, and Irritable Bowel Disease
@HospitalPatient
Another great example,-
Mike built a community of
over 700 Crohn’s, Colitis, &
IBD Disease patients in just
a few months on MedStartr

44. John Accardi (Patient) &
Frank Lewis (Engineer)
@LewCardia
John and Frank want
to revolutionize
Ostomy systems for
Ostomates
Everywhere – Fund
them on
www.MedStartr.com!

45. Creating the Wave
• Starts with
Patients
• Builds with
Doctors
• Peaks with
Partners
• And you may even
get a Hospital to
sign up
If you Do it Right, You all Ride the Wave together
Photo courtesy New York Times

46. How will you
Revolutionize
Medicine?
@alexbfair#MEDX

47. Get Your
Hero On(if you need a cape, please see Regina Holliday in the back)
Thank you for your support and attention
@alexbfair#MEDX

48. Crowdfunding Healthcare Innovation
Thank you for your interest.
For more information please contact us at 530.MED.STARtr or
GetStartd@medstartr.com
Equity Crowdfunding for Healthcare
We would love to be your Alfred.

49. For Corporations, Associations, Governments, and
other Organizations we also help you drive innovation
with our Crowds4Cures Open Innovation Platform
Where Patients, Care Providers,
Partners, Payers, and Institutions can
collaborate to create the Healthcare
Innovations they care most about