I lost my dad in 2008. That occurrence exposed me to the healthcare sector and opened my eyes to some of the inefficiencies in healthcare processes, especially care management. Consequently, I became interested in using technology to improve the healthcare sector. When you experience it personally, you begin to notice that the inefficiency in the process and management of patient care is beyond Nigeria. It can be a global challenge. I see this health-tech challenge as a painkiller (a need) and not just a Vitamin (a want). The usual investment advice for new Angel investors is to go with startups in your sector of expertise, I am personally interested in tech-enabled startups as a wider net.
Today as an Angel Investor, I’ll share about why I invested in a Healthcare company that helps healthcare providers deliver Chronic Care Management (CCM) services more efficiently and profitably using AI in the US. The startup is called Jaan Health.
Jaan Health is an AI-powered SaaS company that helps healthcare providers deliver Chronic Care Management (CCM) services more efficiently and profitably. Their target Market is the US. They are a B2B company aimed at medical groups and healthcare organizations. Their goal is to transform Chronic Care Management into a highly-scalable service for providers and patients.
The Market
The second attraction beyond the “need” was the market and its potential. It is no secret that The US healthcare industry is massive, with healthcare spending accounting for over 18.3% of US GDP in 2021. The US being one of the largest healthcare sectors globally makes it an attractive opportunity to explore. Deloitte estimates that, if the current trajectory continues, health spending in the US will triple to nearly $12 trillion by 2040, or 26% of the US GDP. This growth is largely driven by inequities in the US healthcare system,
Another driver of these high costs is healthcare companies’ adoption of emerging health-focused technology. The latter is a sweet spot for Jaan health. US healthcare providers and facilities spent $17.9 billion on cloud-based technologies in 2022—this figure is expected to jump to $29.15 billion in 2026. The addressable and serviceable market exists and the growth potential is enticing. The is a clear need to solve for Chronic Care management, especially in the US and hopefully expand to other markets.
The Product
The use of AI on the product. As I have noted in an earlier LinkedIn post, the winners in the AI run might be those that use it in a vertical focus. Jann health’s domain expertise and access to unique data sets making granting them a competitive advantage. Their AI-powered Phamily platform benefits from this.
Their Phamily care management solution, makes it possible for healthcare providers to proactively follow up and check in on all of their patients with chronic disease, in between office visits and at a large scale. By replacing manual follow-up with personalized AI-directed patient messaging and lower-cost labor, providers can improve productivity by 10x.
Providers can potentially double their revenue per medicare patient while reducing medical spending. The current trend is that consumers want to play a more active role in monitoring their own health. This is evident with tech that promotes vital tracking (e.g. Smart Watches and phones), early detection, and prevention of disease. Consumers and providers are getting used to, remote patient monitoring (RPM) tools, which enable a continuous stream of real-time health data between patients and their doctors, solutions like Phamily will be easy to adopt. This will account for savings for providers and the sector as a whole.
The Team
Another key point is the team for me. The CEO and Founder, Nabeel Kaukab has spent cumulatively 20 years in the healthcare investment bank and healthcare sector. His domain knowledge makes a great Founder/Market fit for the US market. Though I realize the sector nuances for different markets exist. I am looking forward to when such solutions can also make their way to continents like Africa.
Do you want to read about other Startups I invested in? Check my last article: “Jane Taking On Investing.”
Justine Anku
Health care and (food) Agritechnology is life ; without this two areas , God’s creation cannot live a normal life. All depend on putting good administration in place. By using technology in agric sector I think a farmer cannot loose.
Using marketing strategies on the Internet will also boost the farmer’s products to go far.
A farmer can export a finished products.
Agriculture is very important so long as food is concerned.