The advisory council comprises investors Ascension Ventures, Bain Capital Ventures, Echo Health Ventures, Frist Cressey Ventures, Heritage Group, New Enterprise Associates and 7wire Ventures, as well as the technology security certification provider HITRUST.
The plan is that startups will seek HITRUST certification in order to make themselves more marketable and more ‘viable’, suggested Daniel Nutkis, Chief Executive of HTRUST. “Organisations tend to be reluctant to work with startups… [Our certification] gave venture capital firms a level of comfort and we saw it as an opportunity.”
Nutkis added that Christopher Brooker – a partner at First Cressey Ventures, which spearheaded the conversations about forming the council – approached HITRUST in order to better develop a programme more targeted at early-stage companies, as well protecting capital commitments.
Data from machine intelligence company CB Insights reveals that over US$50 million of investors money has been put towards healthcare startups, with nearly $16 billion of this being poured into digital health companies. As Booker pointed out: “Data breaches and privacy violations … these things can destroy a company”, and so this council represents a timely addition to the digital healthcare industry.