Author: Diana Cugliari

Partner Progress: Forest Devices Hits Milestone with AlphaStroke™ Device

Posted on by Diana Cugliari

By:  Diana Cugliari
President & CEO
Pittsburgh Life Sciences Greenhouse

 

PLSG partner Forest Devices, an innovative Pittsburgh-based medical device company, has earned high praise for its AlphaStroke™ diagnostic platform that enables first responders to accurately diagnose stroke in the field, pre-hospital. This knowledge provides more accurate triage, which reduces time to treatment and improves outcomes for patients.

The company recently published positive results from the Emergency Data Gathering AlphaStroke Refinement (EDGAR) study of AlphaStroke™ in the America Heart Association Journal, STROKE. We sat down with Forest Devices CEO Matt Kesinger to learn more about this landmark study and what the future holds for Forest Devices.

PLSG: Before attending medical school at the University of Pittsburgh, you worked as an EMT. How did that experience influence your development of AlphaStroke™?

Matt Kesinger: “I didn’t know it at the time, but that experience would shape my future. I learned first-hand how hard it is to identify stroke in the field. In medical school, my research focus was trying to improve the pre-hospital experience for stroke by developing clinical exams beyond the standard, ‘squeeze my finger/what month is it/follow my finger’ assessment. I eventually found that the biggest problem in my work became a research problem, and then later became a business opportunity.

PLSG: Why is it so essential for first responders to accurately determine whether or not a patient is having a stroke before transporting them to the hospital?

Matt Kesinger: The single greatest cause of disability from stoke is pre-hospital misdiagnosis. Wrong decisions delay treatment, and in stroke care shortening time to treatment is essential. If a patient is in fact having a stroke, they will wither need specific medication or a surgical procedure. The problem is, not all hospitals provide these treatments. The wrong assessment could either lead to taking the patient to a hospital that is not equipped to handle the case, which would require a second transport and more time until treatment, or, conversely, a patient could be taken to a hospital much further away for surgical intervention when a local hospital would have been able to manage the case with medication.

PLSG: How does AlphaStoke™ support field triage and improve patient outcomes?

Matt Kesinger: The single most important thing for a stroke patient is what happens pre-hospital. There is too little time to make the most important decision in that patient’s life, and no system was really accurate. There was a need for an objective way to determine whether the patient was having a stroke or not, so six years ago I developed AlphaStroke™ – a compact and portable EKG for the brain – to reduce delays in stroke treatment.

PLSG: How does the AlphaStroke™ device work?

Matt Kesinger: Instead of relying solely on a clinical exam, AlphaStoke™ can determine if a patient is experiencing a large vessel occlusive (LVO) stroke, a type of ischemic stroke that requires surgical intervention, a thrombectomy, which is only available at highly specialized hospitals. The portable AlphaStroke™ device utilizes a single-use disposable head cap that quickly delivers a binary result – stroke or no stroke. Better diagnosis empowers first responders to make the most appropriate transport decision for the patient, shortening the time to treatment and reducing the risk of death and permanent disability.

PLSG: The accuracy of the device has been clinically validated – how was this achieved?

Matt Kesinger: Clinical results have shown that Alpha Stroke™ is 80% accurate. Better diagnosis shortens time to treatment, improving patient outcomes. We recently published positive results from the EDGAR study of our AlphaStroke™ technology in the American Heart Association Journal, STROKE. The study showed that, compared to the clinical exams currently used by medics in the field to make triage decisions, AlphaStroke™ was 28% – 40% superior at correctly identifying patients with LVO, and was equally as good as the clinical exams at correctly ruling out patients with non-LVO diagnoses.

PLSG: What’s next for AlphaStroke™ and for Forest Devices?

Matt Kesinger: For AlphaStroke™, the final test before market launch is in the field and starts in a few weeks. The SEGUE study will test AlphaStroke™ on over 1,000 patients on ambulances in Alberta, Canada. EMS is not a market familiar to most investors in the United States, and that has been the biggest challenge the company has faced. Raising the series-B needed to get AlphaStroke™ to market has been so challenging that I and a large part of the company are planning to move to Europe to obtain financing.

To learn more about AlphaStroke™ and Forest Devices, visit the website or read more about study results.

How COVID-19 is Changing Telemedicine

Posted on by Diana Cugliari

By:  Diana Cugliari
President & CEO
Pittsburgh Life Sciences Greenhouse

 

The COVID-19 pandemic has changed how we do just about everything – including how we provide and receive healthcare. If you find yourself talking with your doctor more often via video call than in the office, you aren’t alone.

Since the onset of the pandemic last spring, federal and state governments have eased restrictions that had previously impeded the use of telemedicine platforms.

According to the Centers for Disease Control and Prevention (CDC), “The 154% increase in telehealth visits during the last week of March 2020, compared with the same period in 2019 might have been related to pandemic-related telehealth policy changes and public guidance.”

This has helped to propel emerging telehealth platforms into more widespread use, and now telehealth is emerging as a preferred delivery method for both providers and patients.

This stands to reason – not only is telehealth more convenient (no driving, parking, waiting in-office), it reduces risk to exposure and also helps to conserve the use of medical supplies and precious personal protective equipment (PPE).

In some scenarios, though, the use of telemedicine may not be ideal – for instance, if a patient’s condition requires more involved evaluation, testing, or labs.

Also, while telehealth may be a bridge to care for some, for others it may be a barrier. Some patients may struggle to overcome a variety of obstacles – no internet service, no smartphone or other device to access virtual care, lack of technical knowledge or resistance to embracing technology needed, and lack of a caregiver/support person who can help. Outreach and support are needed to help patients overcome these disparities and facilitate telehealth access.

This is especially important for those living with chronic conditions, as a telehealth platform is an ideal solution for chronic disease management, according to Pamela Greenhouse, Chief Operating Officer and Vice-President of Clinical Operations at Wellbridge Health, a connected health management company.

“There is no doubt that telehealth can improve the quality of care, such as in cases where patients would not travel to necessary medical appointments or need more frequent health intervention than traditional care models provide,” says Ms. Greenhouse. “Our chronic disease management approach, which provides frequent, brief one-on-one telehealth interactions in between physician visits, has been shown to improve health outcomes and quality of life while decreasing avoidable ER/hospitalizations.”

Will telehealth remain a preferred delivery method even post-pandemic? That may depend in large part on whether the easing of restrictions on the use of telehealth during the COVID-19 pandemic are extended. The American Medical Association (AMA) is advocating to make these policy changes permanent.

Meanwhile, many of us have become accustomed to seeing our doctors from the comfort of our living room – bring a whole new spin on the old-fashioned “house call.”

Koonin LM, Hoots B, Tsang CA, et al. Trends in the Use of Telehealth During the Emergence of the COVID-19 Pandemic — United States, January–March 2020. MMWR Morb Mortal Wkly Rep 2020;69:1595–1599. DOI: http://dx.doi.org/10.15585/mmwr.mm6943a3external icon.

Venture Capitalist Perspectives in a COVID-19 World – Part 2 of 2

Posted on by Diana Cugliari

After an informative conference call with leading venture capitalists, sponsored by the National Venture Capital Association, I felt there were some great takeaways worth sharing. The overarching theme was how to respond to and manage startup challenges that are only now starting to emerge in the chilly economic climate of a COVID-19 world.

What are some of the Go-To-Market strategies startups might have to face and adapt to?

Investors want to know that you have sensors out in the market. They want to know that you are listening to the needs of potential clients who want to engage. Since conferences and large gatherings simply are not happening, you’re going to need to find a new way to the top of the sales funnel. You need to get comfortable using Zoom and other meeting software–get GOOD at it; these platforms are quickly becoming part of a new cross-industry standard.

How would I raise a round remotely? Can you build the founder/partner relationship without conventional face-to-face meetings? 

Actually, seasoned venture capitalists are anticipating a future of investing without meeting every founder in person. Remember that the trust of the venture capitalist will be earned over time. Make sure you know your domain, develop a reputation for demonstrating customer engagement, and zero in on how your product fits in with the current climate—after all, the focus is going to be on data.

What’s the strategy for a startup that’s not currently in the “need to have” category? 

If it’s something that’s nice to have, find your way to the customer that must have it. In this climate, both businesses and customers are going to tighten up and focus on higher value initiatives. Anticipating this truth is of the utmost importance. If the startup team is too lean, and it becomes obvious that this is not the time to go to market, venture capitalists are going to take a pass.

Is it worth it to narrow the pitch to perceived value strictly in the shadow of COVID-19? Or should we continue chasing the big vision? 

The focus today is on keeping the company alive during a time of crisis, while continuing to nurture long-term strategies and the “big picture” for future growth. Though right now, today, we’re narrowing our vision to that “one feature” for that specific customer, we’re aware that certain sectors are going to be especially hard-hit. If you’re gunning for that “hard-hit” market, you need to either redirect or hit pause and hunker down. Remember: venture capitalists prefer situational awareness, so you’d better figure out where and how the company is currently positioned.

Are there other ways to make progress right now, other than selling to customers? 

Tons of progress can be made. Get out and meet with potential customers, develop a deeper understanding of their needs; where are the gaps? Are you still aligned with your people? Is your mission clear and well-communicated? Repurpose your time for product development so when the thaw comes, you have something special to share. Consider starting a funding round: This could be a prime opportunity to start a seed stage and get a company going. After all, it’s not likely to be a crowded competitive field vying for those same dollars.

Are there other ways to add value to your community when you’re a membership product?

To reiterate one of the most important points from earlier in the discussion: Listen to the needs of your current customers, and service them to the best of your ability. Become of source of assistance, information, and added value to your customer. Also, consider whether there is a solution you can provide to a need that is not usually handled by your product; diversification is almost always possible.

Venture Capitalist Perspectives in a COVID-19 World – Part 1 of 2

Posted on by Diana Cugliari

After an informative conference call with leading venture capitalists, sponsored by the National Venture Capital Association, I felt there were some great takeaways worth sharing. The overarching theme was how to respond to and manage startup challenges that are only now starting to emerge in the chilly economic climate of a COVID-19 world.

So, is anyone still investing? 

The answer is, generally, yes. On a macro level, venture capitalists are looking carefully at businesses in the early stages, where they may be seeking funding for early product development, for example. As companies move into later stages of growth, uncertainty starts to hamper their ability to make decisions—particularly during a crisis like the one at hand–so they are less attractive to investors.

What are the secrets to presenting well to venture capitalists in a time of virtual meetings only? 

Everyone needs to be using video for presentations, rather than hiding behind voice-only communication. The visual aspect means the meetings will take longer, but there is no overemphasizing the importance of the visual component in terms of making an impact through clear communication of ideas, potentially enabling a connection on a deeper level. Brevity and accuracy become paramount; and keeping details, content, and data tight will help to streamline initial presentations—get to the point quickly, and make the point clearly. Also, consider building relationships with shorter meetings with specific purpose(s). Follow-up sessions can often be kept to 30-45 minutes with each session building on the last.

What makes a pitch more attractive to venture capitalists during a downturn in the economy? 

Often, they (VCs) are looking for signs of life in troubled times. They want to know that you’re still engaging your customers and moving your product; that you’ve found the pockets of opportunity for your product to solve a key problem and prove that you’re still viable in this environment (i.e., could you diversify and/or move part of the business online?).

What are the most important data points for a startup to show potential investors, to prove they’re on point?

In short, customer retention and customer expansion are most attractive; clarity in financial planning and evidence that expenses are being brought under close control are also of great interest. Most importantly, under our new collective reality, show how you are going to retain control of the company’s destiny.

What else are startups to do differently now, than they did in the pre-COVID world? 

Primarily:  Make it your top priority to ensure your people are safe and healthy. Next, look at your existing customer….take great care of your existing customers. Modify your processes to generate goodwill among your clients and retain them through the hard times—anything you’re building has to be for them. Another central idea is to pull back on your expenses and do your best to “make do” with the resources at hand, erring, of course, on the side of caution and conservation, and putting the people and public health first.

New Tax Credit Frees Up Funds for Startups

Posted on by Diana Cugliari

When is a tax credit of little use?  Entrepreneurs have had access to the federal R&D tax credit for 35 years, but that only impacts income tax – and since startups typically have very little income, that particular tax credit really didn’t help much.

But startups do have employees who get paid.  That’s why, starting this year, expansion of the Federal Research and Experimentation Tax Credit will, at last, bring entrepreneurs the tax relief they’ve been seeking by impacting not their income tax, but their payroll tax.  The new tax credit includes a new way for “qualified small businesses” to receive a credit for their research expenditures by offsetting their payroll taxes.

According to a recent article in Forbes, Congress recognized the problem of startups not receiving tax benefits because of the focus on income taxes.  That, plus the fact that Congress acknowledged that entrepreneurs are also job creators, led to the legislation creating a second way to take the R&D tax credit.

At the PLSG, such entrepreneurs are the lifeblood of the regional life sciences industry – one that has been growing and promises to continue on that path.  Funds that can be redirected from taxes to further investment in people and products is very encouraging news.

Again, according to the Forbes story, newer companies quality for the payroll offsets for the 2016 tax year if the startup was launched after 2011 and their 2016 revenues are less than $5 million.  The tax credit can be for up to 10 percent of a company’s expenditures in the creation of innovation (research and development), to include expenses for research-related employees, contractors, and non-depreciable supplies.  The maximum benefit is $250,000 a year, and startups have a five-year window to take advantage of this tax credit before it reverts back to an income-based tax credit.

Angel investors and other investors of life sciences companies like PLSG need to make their portfolio companies aware of this important development, which can reap significant financial benefits during the critical early phases of research and testing, prior to commercialization.

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Accessing Non-Dilutive Government Funding & Other Opportunities for Biosciences

Posted on by Diana Cugliari

On June 12th, Liz Powell and Lindsay Sacco of G2G Consulting presented a lunch & learn seminar at the PLSG offices.  The topic was:

Accessing Non-Dilutive Government Funding & Other Opportunities for Biosciences

The presenters discussed that funding comes in 4 categories:

  • Grants
  • Discretionary
  • Legislatiion
  • Procurement

And from 5 Sources:

  • Defense
  • Energy
  • Health
  • General Services Administration (GSA)
  • National Aeronautics Space Administration (NASA)

There are two different ways to access government funding:

  1. www.grants.gov – is designed to be where all government grants are posted and provides information on when you would submit your application
  2. www.fbo.gov  – Federal Business Opportunities are where federal contracting opportunities are aggregated

Keep in mind that this is the government, and is therefore political.  Anyone seeking government funding should network with program managers in order to understand their needs and motivations.  The key is understanding their needs and finding a way to meet them.

There are various networking opportunities available:

  • Attending KEY conferences
  • Scientific Assembly and Exhibition (SOMA)
  • Military Health Services Research Symposium (MHSRS)
  • Vendor Days at Fort Detrick and NIH, TATRAC monthly meetings
  • Government workshops – ex. Led by Health and Medicine Division within National Academies of Sciences, Engineering and Medicine, FDA, etc.

More detailed information is provided in the slides from the presentation, which are available here:  Government Funding Seminar_2017-06

About G2G Consulting:

G2G Consulting is a bi-partisan consulting firm with over 70 years’ experience working in and with the government.  They have raised over $153M for clients since 2007 and secured CMS reimbursement rates, shaped regulations and drafted and enacted policies.  Their niche is Biosciences and high-tech innovation.

Just the Facts – Speaking the Language of Funders

Posted on by Diana Cugliari

In just about any TV police drama, detectives have a way of cutting through the clutter when interrogating a witness – they want just the facts.  In other words, don’t waste time on irrelevant information or pumped-up descriptions.  Eliminate distractions.  Just the facts.

Startup entrepreneurs can take this same advice when approaching funding sources.  Hopeful business owners may not be as confident in building a case, so a flashy PowerPoint presentation gets assembled to cover their tracks.  Or maybe they overemphasize or underplay the wrong aspects of their pitch, missing the mark in the end.  The potential for disappointment can be enormous.

It helps to speak the language of the people and organizations writing the checks.  Here’s why.

Funders are looking for indications – as strongly and clearly conveyed as possible – that a startup business is more than just a good idea, because an idea is just that.  It doesn’t make money yet.  It’s not real yet.  And it’s not going to get any funding yet.

Funders are looking for certain criteria before they will commit.  Is the business in an industry they typically fund?  Is the financial “ask” within a suitable range to generate the returns the funder expects?  Can the business win in its competitive space, and why, and how?  Can the business prove that others believe in it as much as the entrepreneur?  What has been done already, before receiving additional capital, to prove commitment to the concept – such as development of a working prototype, sales achieved to date, and hiring key talent?

Funders are looking for the right fit.  The business must appeal to some inherent, many times unspoken, intangible that’s important to the funder.  It could be a shared interest in the field that the business addresses, or the markets it will serve, or maybe a personal connection of being fellow alumni of a university.  The business seeking funding certainly must offer tangible, measurable, objective evidence that it’s worthy of financial support.  But the funder also needs to feel good on a subjective level about the decision.

The Pittsburgh Life Sciences Greenhouse works with startup entrepreneurs seeking early-stage funding.  We’ve seen presentations that worked and those that didn’t.  Bottom line – lose the extraneous stuff.  Stick with just the facts.

The Importance of a Hashtag

Posted on by Diana Cugliari

Hopefully by now your startup or business has created a Twitter to engage with possible investors or customers. Beyond sharing your company’s latest developments and industry news, are you actively pursuing a way to uniquely connect with your target audience? Proposing questions and replying to other users’ tweets will push you in the right direction in terms of engagement, but to create a lasting impression on your users, a hashtag can be your best friend.

Awareness

One of the most important aspects of creating a hashtag is using it to spread the awareness of your product, business, or campaign. The hashtag was invented in order to make discovering a certain topic or group easier. To steer clear of any confusion, avoid using acronyms unless they are relevant in your industry. Your hashtag should show off the best parts of your company, and if you’ve already created a great tagline, that may be your best starting point. A great hashtag will create a meeting place for users, allowing them to simply search for it and know there will relevant content and conversations waiting for them to discover.

An example of a hashtag that raises awareness is #Doctors20. Although the proper name for the event is Doctors 2.0 & You, it streamlines the event’s name and makes it easily discoverable to users.

Length

Because Twitter has a limited character count, the length of your hashtag is very important. This doesn’t mean they have to be short, but you must remember that users will also want to have their message heard when using the hashtag. Creating one over 20 characters will deter others from ever using it, but also using only single words can get your content buried under other irrelevant topics.

Content

In order to ensure your hashtag stays relevant, you’ll want to create content specifically for it. Without a conversation or information to keep your hashtag going, it’ll fizzle off as fast as it was started. A great way to have your hashtag included in other relevant conversations is to use it alongside other popular hashtags. For example, if you are trying to promote a medical device, use #MedicalDevice when tweeting yours. This will allow any user searching for that topic to also come across yours at the same time. Although you may want to include multiple hashtags you find relevant to your topic, it’s been studied that when using more than three at a time can deter users from viewing your content.

Creating a relevant hashtag for your product or business can move it forward tenfold, or stop you dead in your tracks. So before sending your topic off into the internet on its own, research to make sure there aren’t any conversations already happening with the hashtag you wouldn’t like to be included in.

Inbound Marketing: How to Build the Right Platform for Your Audience

Posted on by Diana Cugliari

As a Healthcare Information Technology (HIT) startup, you’re likely wondering how you’re going to spread the word about your product/innovation to your target audience once you’ve hit the development phase.

A viable way to reach your audience, and position yourself and your company as a thought leader in your field, is to create an inbound marketing strategy. That way, your audience will come to you and not the other way around (remember cold calling?).

Inbound marketing is effective. Point blank. It gives you and your company the control over your messaging and your go to market strategy. Inbound marketing – using blogs, newsletters, social media, whitepapers, SEO, products, etc. as a form of content marketing – is not to be confused with interruption marketing, which can be a bit invasive and can scare off potential customers (or investors). For example, a video ad (which can be effective under the right circumstance) that pops up as your target consumer is trying to read an article can be considered “interruption marketing” whereas a weekly video blog that you post to your company’s YouTube Channel and website, would be considered inbound marketing. The key here is to provide value without being too sales focused – a tricky line to toe when you are, in fact, trying to generate sales.

Here are a few tactics to consider when building an inbound marketing program. Be sure to check out this blog (Inbound Marketing: When to Cut the Cord and Start Selling) to help you identify your audience and to begin thinking strategically.

• Social Media: Everyone is on social media these days. Whether you want to admit it or not. Suffice it to say, social media has completely changed the way companies reach their consumers and handle customer service. However, it is important to consider which platforms to use in order to reach your target audience. You wouldn’t want to be on Snapchat if your target age demographic is on Facebook. It’s all about maximizing your content and reaching the appropriate audience. In addition, if you’re on social media, you might consider engaging with other thought leaders and influencers in your field from your company page. For example, retweeting and commenting on their content. This helps to encourage engagement on your own properties as well!
• SEO: Using relevant keywords in your Google AdWords and on your website is a great way to reach your audience when they’re searching for a company like yours! There are plenty of AdWord tutorials out there to get you started.
• Thought leadership: It is important to establish yourself as a thought leader in your field, especially when you are a startup. One way to do this is to create content that is meaningful to you (and your potential consumers). For example, you might consider giving away a guide or whitepaper for free that is directly tied to your business or field. Not only are you providing valuable content, but you’re also positioning yourself as a business who gives back. Another way to show thought leadership would be to pen a weekly (or bi-weekly) blog for your website. You can post these articles to your Facebook page or Twitter (while a little paid support from ads).
• Designated Landing Page: You might consider creating a designated hub to house all of this great content. It’s easier to have it all in one place after all. For example, if you were sending out an email blast, it would be a great tactic to drive your consumers directly to that page to “learn more” about your company.

There are many different ways to reach your target audience through inbound marketing and above are just some of the few ways you can do that.

Remember: what works today, might not work tomorrow. That’s why it is so important to be open to trying new things and testing different types of content that are outside of your comfort zone. Once you’ve gotten into the rhythm of creating content, it will become second nature. But remember, if it doesn’t provide value to your consumer, it probably won’t drive results.

Inbound Marketing: When to Cut the Cord and Start Selling

Posted on by Diana Cugliari

The research is done. You’ve curated the perfect team of experts, scientists, business professionals and investors. You’ve got your website, social media properties and your very own office or lab space. You’re almost there! It’s time to start selling, right? Well, almost.

Many start-up companies, particularly in the Healthcare Information Technology (HIT) category, find it difficult to identify the right time to start generating awareness around their innovative product or solution. Sure, it can be difficult but it can also be very exciting. This pivotal time – research phase is complete, and moving into the development phase – can be a “make it or break it” for many budding life sciences companies.

In this digital landscape, inbound marketing – which is all about using blogs (like this one), newsletters, social media, whitepapers, SEO, products, etc. as a form of content marketing – can be crucial to a company’s early success.

A sound inbound marketing strategy can draw customers to your business (pull marketing) rather than forcing a startup with limited time and resources to start cold calling and knocking on doors (push marketing).

Of course, there are concerns about starting this process too early. As a startup, you wouldn’t want to give the solution away before your intellectual property is protected. However, putting yourself out there (strategically) via inbound marketing tactics can help to solidify you (and your company) as trusted thought leaders and experts in your field.

Before diving in head first to inbound marketing, here are a few questions to ask yourself:

  • Who am I talking to? This is crucial. Who are you trying to reach with your content? Is it angel investors? Scientists? Doctors? Researchers? Customers? After you identify your audience (or key audiences) then you can begin to build out content that you feel would be valuable to them.
  • What platform would be best suited to reach my target audience? Now that you’ve identified your target audience, you now must consider what platforms they are consuming their content on. For example, if your target is a millennial consumer, you might consider focusing your efforts on social media, podcasts and blogs.
  • What do I want to achieve with this content? Now that you have your audience, you now must consider the Why should they care about what you have to say? It is important to always keep in mind that your content should provide value (real value. Not perceived value). What is going to make them keep coming back to your website (or blog, Facebook, YouTube page, etc.)?
  • Can I keep it up? It is important to not “go dark” once you’ve started an inbound marketing campaign. Of course, you don’t want to bombard new (or potential) customers with your content 24/7, but it is important that you maintain relevance in their life. For example, some companies and organizations create weekly blogs or vlogs that keep fans coming back for more. This content creates something to look forward to and encourages engagement while also fostering trust.