Investment criteria

Investment Criteria

We apply a rigorous set of criteria to identify high-potential companies that align with our thesis and generate superior risk-adjusted returns.

Market Opportunity

  1. Large and Growing TAM: Focus on markets with significant growth potential, driven by chronic disease burden, aging populations, and shifting consumer expectations.

  2. Urgent Need: Solutions should address critical gaps in affordability, accessibility, or care quality.

  3. Sector Alignment: Must operate within our three target categories—AI tools, therapeutics, or patient platforms.

Product and Innovation

  1. Differentiated Offering: Clear value proposition with a 10x improvement over incumbents in cost, accuracy, or experience.

  2. Scalability: Infrastructure must support geographic and segment expansion.

  3. Regulatory Readiness: Understanding of FDA, CMS, or EU regulatory pathways (10) is essential for go-to-market success.

Team and Leadership

  1. Domain Expertise: Founders must bring deep knowledge of healthcare, ideally with clinical or payer-side experience.

  2. Execution Track Record: Evidence of successful startup execution or prior operational excellence.

  3. Visionary Leadership: Ability to scale both product and culture while adapting to dynamic markets.

Business Model and Traction

  1. Sustainable Monetization: Strong unit economics with multiple revenue channels (e.g., SaaS, licensing, reimbursement).

  2. Validated Demand: Early contracts, pilots, or traction with payers/providers are key.

  3. Path to Profitability: Even in early stages, a roadmap toward breakeven or cash flow positivity is essential.

Competitive Edge

1.       Moats: Proprietary datasets, novel IP, or technical advantages.

2.       Network Effects: Platforms that become more valuable with adoption (e.g., AI trained on larger datasets).

3.       Speed to Market: First-mover advantage in emerging or unregulated niches.

Alignment with Bellios Capital

  1. Healthcare-Focused: Leverages our firm’s experience in healthcare delivery, pharma, and technology.

  2. Value-Add Leverage: Will benefit from our strategic guidance, advisory partnerships, and investor ecosystem.

Market Opportunity

  • Large and Growing TAM: The company should address a substantial Total Addressable Market (TAM) with a clear growth trajectory.

  • Urgent Need: The product or service must solve a critical problem in healthcare delivery or innovation, creating strong demand.

  • Sector Alignment: Focus on areas such as AI-driven healthcare tools, next-generation therapeutics, and patient-centric platforms.

Product and Innovation

  • Differentiated Solution: A defensible product offering that significantly outperforms existing solutions in terms of cost, outcomes, or efficiency.

  • Scalability: The product or service must be designed for growth, with potential for expansion across markets, geographies, or adjacent segments.

  • Regulatory Readiness: The solution should either comply with current healthcare regulations or have a clear path to achieving compliance.

Team and Leadership

  • Domain Expertise: Founders and key team members must demonstrate deep knowledge of healthcare and the specific challenges they are addressing.

  • Execution Capability: A proven track record of delivering results, supported by operational excellence and adaptability.

  • Visionary Leadership: A compelling vision for transforming healthcare, backed by strong communication and leadership skills.

Business Model and Traction

  • Sustainable Revenue Model: Clear pathways to monetization with evidence of early revenue or a strong plan to achieve it.

  • Customer Validation: Proof of demand through pilot programs, partnerships, or adoption by healthcare systems, payers, or patients.

  • Path to Profitability: A realistic plan for achieving profitability or strong unit economics, even at an early stage.

 Competitive Edge

  • Proprietary Advantage: Whether through patents, unique data sets, or technological barriers, the company must demonstrate a clear moat.

  • Network Effects: Solutions that become more valuable as adoption increases, such as data platforms or patient/provider networks.

  • First-Mover Advantage: Evidence that the company is positioned to capture and maintain market share in an emerging sector.

Alignment with Firm Expertise

  • Healthcare Focus: The opportunity should align with our firm’s expertise in healthcare delivery, pharmaceuticals, and technology.

  • Value-Add Potential: The company should be open to and benefit from our strategic guidance, network, and operational support.

Exit Potential

  • Acquisition Landscape: Strong likelihood of interest from strategic acquirers such as large payers, pharma companies, or tech giants.

  • IPO Viability: A credible path to becoming a standalone public company in the long term.

  • Return Multiples: Potential for 10x returns on early-stage investments, supported by realistic market and revenue projections.

This framework ensures a rigorous, data-driven approach to identifying startups with the potential to redefine healthcare delivery and drive exceptional returns.

Download our investment thesis here.

Previous
Previous

risks & mitigation strategies

Next
Next

Hypothesis: early-stage startups impact domains