Clinics that provide quality services even the poorest patients can access? Telehealth infrastructure that helps healthcare specialists reach the most remote communities? Low-cost, disposable surgical tools that replace unsafe sterilization in the field? With technology and business model innovation growing at warp speed, it’s no wonder that more and more capital providers see global health investments as a way to make an enormous impact in the world. But what about complex regulatory environments? Emerging market risks? Questionable exit opportunities? Interest may be increasing, but investing in health across global markets is complex and it can be difficult to navigate the sector, adequately assess investment opportunities, and find the right investment partners.
Working collaboratively to understand social challenges and fund entrepreneurial solutions has been Investors’ Circle’s focus for the last 25 years, driving over $200M of investment into more than 325 high-impact enterprises worldwide. In 2013, Investors’ Circle joined the Social Entrepreneurship Accelerator at Duke (SEAD), a five-year accelerator mobilizing practitioners, investors, policymakers, faculty, staff, and students to support and scale global health solutions, and launched the Global Health Advisory Board (GHAB), a collection of over 20 global health investors with experience across the capital spectrum and around the world. This group of experts and practitioners has informed the way our network and other early-stage investors think about how to deploy capital in the global health sector. Their insights have guided us on multiple trips to East Africa, contributed to the stories and learnings we’ve shared in blogs and white papers, and laid the foundation for the growing number of global health and international investments within our community.
We charged the GHAB with identifying some of the biggest challenges facing investors in the global health sector and worked together to develop two new resources for global health investment: a Guide to Governance, Management, and Team Development and a Co-Investor Alignment Assessment. These guides are the result of a year of focused calls and feedback sessions within the GHAB as well as test exercises with our members, traditional angel investors, international capital providers, and global health entrepreneurs. These resources aim to help early-stage capital providers better understand critical pieces of the assessment process and better build their own investment practices.
Today we release the first of these resources, our Guide to Governance, Management, and Team Development. Early-stage due diligence can be difficult in general, and evaluating a medical device company in Kansas City and a chain of maternal health clinics in Kenya requires different approaches and sometimes different expectations. When assessing a global health company’s leadership and governance, the GHAB recognized the tension between standard requirements on board structure, founder experience, and business practices and the reality of working in markets and sectors with less entrepreneurship and investment infrastructure. This Guide to Governance, Management, and Team Development illustrates what investors should expect to see in global health leadership teams by stage of company development with a goal of fostering conversations with entrepreneurs and influencing governance and team development strategies that will help global health companies scale to success.
Download the Guide to Governance, Management and Team Development here and test it while you evaluate a global health investment opportunity. How did your assessment of the company’s management and governance change? Were there any shifts in your expectations? Stay tuned for our second resource, to be released on October 18th!