In a bold initiative to help improve and streamline the way medical investigations are accessed, integrated and managed, Medicai continues its journey of expansion in the U.S. market. This healthtech company, backed by Hellen’s Rock Capital, among others, is integrating its API for medical imaging with healthcare systems to facilitate effective visualization, instant access, and collaborative treatment. In this post, we delve into the insights from Alex Seran and Andrea Čordaš of Hellen's Rock Capital, discussing the foundation of their partnership with Medicai, its potential, and the societal impact.
1) What convinced Hellen's Rock Capital to invest in Medicai?
At Hellen's Rock Capital, we are committed to supporting founders who are making significant advances in healthcare to improve patient outcomes. Our investment in Medicai stems from a strong belief in the company’s vision and potential. We are convinced that Medicai will play an important role in creating a more connected and patient-centric healthcare future. With a market poised for substantial growth, Medicai’s approach to medical imaging and collaborative medicine is forward-looking.
The market that Medicai is tackling is a growing one, supported by strong trends - digitalization of medical services, cloud migration, AI on top of imaging data, fast path to drastically reducing medical imaging storage costs, increasing ease and speed of doctor-patient collaboration, introducing new revenue streams and boosting patient loyalty.
Medicai is led by strong, experienced founders with industry expertise and exits under their belt. The vibrant palette of skills and domain knowledge of the founding team and their dedication to improving patient lives with Medicai across Europe and U.S. were the foundation behind our decision to partner with them.
2) How is Medicai contributing to the medical imaging industry?
In the dynamic sector of medical imaging, Medicai is making a mark by significantly reducing diagnosis time and enhancing patient-doctor collaboration. It is developing new business models in a sector increasingly valuing innovation and patient-centric solutions. Adhering to compliance and security standards like HIPAA and GDPR, Medicai aligns perfectly with the sensitive nature of healthcare in both the U.S. and Europe. Its sustainable business model and proprietary and scalable medical imaging infrastructure are its main defensible assets.
3) From an investor's perspective, what opportunities and challenges do you foresee in supporting the expansion of Medicai in the U.S.?
Medicai's focus on value-based care enablement and specialty care aligns with current market trends in the U.S. healthcare industry. We see this alignment as an opportunity for a company that addresses emerging needs and demands in the evolving healthcare landscape.
4) What considerations make the U.S. market attractive for Medicai's expansion?
Size of the market (Virtual and value-based care will be worth more than $100 billion in 2030; 90% of healthcare data storage is represented by images; data generation is increasing massively - 36% CAGR), healthcare spending per capita (U.S. healthcare spending grew 4.1 percent in 2022, reaching $4.5 trillion or $13,493 per person), density and fragmentation of healthcare providers, and broader potential exit opportunities.
The sheer size and complexity of the U.S. healthcare system provide ample opportunities for a platform like Medicai to address a wide range of needs across various medical specialties.
5) From an investor's standpoint, what potential returns and long-term benefits do you see in investing in a platform like Medicai?
The healthcare landscape is shifting towards value-based care models, where providers are incentivized to deliver better patient outcomes at lower costs. Moreover, as healthcare systems embrace more interconnected technologies and standardized data exchange protocols, the seamless flow of information across disparate platforms will hopefully become a reality. Medicai's focus on value-based care enablement, interoperability and data security aligns with industry trends, making it well-positioned to capture opportunities in this evolving market.
We supported Medicai through good and bad times with a return profile that is skewed to the upside, while being protected in the downside, in which Medicai would be growing into a regional CEE player in its niche market. Importantly, we were one of the earliest backers and followed-on in a few financing rounds alongside a few other investors to contribute to getting the company to the US and their Series A mark.
6) What societal or industry-wide benefits do you anticipate from the widespread adoption of a platform like Medicai?
In an ideal world, Medicai would be a stepping stone for unlocking solutions to existing healthcare problems, by harvesting the power of big data. Whilst Medicai’s business is an infrastructure play, there is a significant opportunity of Medicai enabling healthcare providers to create new and diverse direct-to-patient services.
7) Why is Medicai’s vision relevant for the future of healthcare?
Investing in Medicai signifies a commitment to a broader healthcare revolution. Its potential in the CEE market and the U.S. expansion presents significant opportunities. Medicai aims to be a catalyst in solving existing healthcare problems using the power of big data, while also enabling healthcare providers to create diverse direct-to-patient services.
As Medicai ventures into the U.S., it does so with a spirit of collaboration and a dedication to improving healthcare. This expansion is more than just a strategic move – it is a step towards enhanced healthcare accessibility, improved patient outcomes, and a future where healthcare is more connected and patient-focused. We at Hellen’s Rock Capital are proud to have supported such a strong and experienced founding team, equipped with industry expertise and successful exits.
