Engagement with Israeli health orgs has remained steady – even through COVID-19! Learn more on this presentation :)

1. More than a First Date
Mapping out Engagement between
Startups and Health Organizations
IL

2. Purpose
To assess the amount and degree of engagement
between startups and Israeli health organizations
- From the perspective of the startups

3. 2019 vs 2021
• Understanding initial engagement with
health orgs vs. more than initial engagement
• First meetings vs beyond first meeting
2019 2021
• Understanding the continuity of engagement
with health orgs.
• The funnel of collaboration

4. Process
2019:
✓ Online survey
✓ Outreach: Over 550 startups
✓ Stage Agnostic
✓ Final dataset: 148 Startups
2021:
✓ Online Survey
✓ Outreach: Over 950 startups
✓ Stage Agnostic
✓ Final Dataset: 257 Startups
55%
22%
5%
18%
Early Mid Late Bootstrapped
Early: PreSeed / Angel / Seed
Mid: A / B
Late: C+
Bootstrapped: No traditional external funding

5. Initial Results
Engagement
with Israeli
health orgs has
remained steady
– even through
COVID-19!
33%
41%
7%
5%
14%
My product needs collaboration
with healthcare organizations, but I
prefer to do this outside of Israel
I have done some
collaboration with Israeli
healthcare organizations
I am interested in
collaborating with Israeli
healthcare organizations but
I have not started yet
My product does not need
any involvement with
healthcare organizations
I have only
collaborated with
healthcare
organization outside
of Israel

6. Engagement
Types
This is where the health org pays the startup for something!
Observational
Study / Research
Conducting a study or
research with a health
organization
MVP / POC
Building or developing
an MVP or Proof of
concept with a health
organization
Pilot
Conducting a pilot
with a health
organization on a
completed MVP / Pilot
Expansion
A follow up or
secondary (or more)
pilot with a health
organization
Commercialization
An actual
commercial agreement
with a health
organization

7. Engagement Status

8. This is where the health org pays the startup for something!
Observational Study
/Research
60
MVP/ POC
94
Pilot
70
Expansion
7
Commercialization
107
25 companies had some form of commercial agreement with health orgs from Jan 2019 – Sept 2021
60 Commercialization Engagements (over 55% of total) came from the same 3 companies…

9. By
Focus
Area

10. Pilot
Decision support
Telehealth
Top Two Focus areas
for each collaboration type
POC/ MVP
Decision support
Diagnostics
Expansion
Decision support
Telehealth
Observational Study /Research
Decision support
Monitoring
Commercialization
Monitoring
Telehealth
Decision Support tools
are hardly ever
commercialized!
Non clinical products are
what is being
commercialized in Israel

11. Collaborations with Hospitals
Type Total No. Collabs Collabs per 100 Beds
Specialized 31 1
General 165 1.1
Size Total No. Collabs Collabs per 100 Beds
Mega (over 1000 Beds) 74 1.23
Large (700 - 999 beds) 43 1.01
Mid (400 - 699 beds) 36 0.76
Small (under 399 beds) 17 0.41

12. -
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
0
2
4
6
8
10
12
14
16
Leumit Meuhedet Maccabi Clalit
Collaborations
per
income
2020
(1B
NIS)
No.
of
Collaborations
% Commercial
Collaborations:
Leumit: 50%
Meuhedet: 50%
Maccabi: 57%
Clalit: 27%
Collaborations with HMOs

13. Non-Collaborators
Trying to Understand Why?
Three main reasons
(as cited by founders themselves):
1. Israel is too small a market or
product does not work in Israeli
Market
2. Significantly more expensive in
Israel for same collaboration
3. Too many bureaucratic hurdles
in Israel
33%
41%
7%
5%
14%
My product needs collaboration
with healthcare organizations, but I
prefer to do this outside of Israel
My product does not need
any involvement with
healthcare organizations

14. Summary
• Corona has NOT reduced the rate of collaboration
• Little expansions or secondary pilots
Possibly because of little need/interest
• Commercialization is based on very few outliers
It is critical to understand the size/scope of commercial
collaborations in order to assess actual integration
• Bureaucracy and Cost as main inhibitors in
collaboration
• Shifting to Commercialization
Understanding what is preventing a wider pool of startups
from reaching commercialization
• Regulation and Validation?
• Economics?
• Bureaucracy?