Data security and privacy are of utmost importance, especially in the healthcare sector, which requires trust and sensitivity. While regulations in India are still evolving, many startups have proactively implemented measures to safeguard themselves and their users, shared Dr Pankaj Jethwani, Partner, W Health Ventures with Kaanchi Chawla of Elets News Network (ENN). Edited excerpts:

With the increasing popularity of wearables and remote monitoring devices, how do you assess the viability and scalability of such technologies when considering them for investment?

In India, due to the availability of sophisticated products at affordable prices, increased consumer awareness, and a focus on preventive health, there is a large and growing market for wearables and remote monitoring devices. We assess the viability and scalability of these technologies based on key parameters before making an investment decision. These parameters include:

• Strong clinical use case: The device should seamlessly integrate into the consumer’s life and provide relevant actionable insights, either through clinically validated technology nudges or human care providers.
• Uniqueness of the technology: The devices must have a discernible advantage over other players, including both startups and larger market leaders, to prevent easy replication of similar features.
• Adherence and retention: Sustained consumer usage is crucial to indicate the device’s value and commercial viability. User drop-off rates are an important metric in assessing this.
• Revenue potential beyond device sales: Scalability is hindered if revenue is solely dependent on one-time device sales. Additional revenue streams, such as consumables, software subscriptions, care packages, or add-on services, should be explored.

An example of a company that meets these criteria is BeatO, our portfolio company, which provides a comprehensive solution for diabetes management. Their low-cost, smartphone connected glucometer not only tracks blood sugar levels but also offers personalised insights, recommendations, and nudges to ensure adherence.

Data security and privacy are major concerns in healthcare. How do you evaluate the cybersecurity measures implemented by healthcare technology startups, and how important is this factor in your investment decision-making process?

Data security and privacy are of utmost importance, especially in the healthcare sector, which requires trust and sensitivity. While regulations in India are still evolving, many startups have proactively implemented measures to safeguard themselves and their users. When evaluating cybersecurity measures, we consider the following:

• Strict access controls: User data should be accessible only to authorised personnel, and access rights should be regularly reviewed and updated. Additional measures like two factor authentication enhance security.
• Encryption: All data, whether in transit or at rest, should be protected through advanced encryption techniques.
• Robust system security: Regular security audits and vulnerability assessments help identify and address potential weaknesses in the technology.
• Employee training: Educating staff on best practices for data protection, password sharing, phishing detection, and confidentiality enhances overall security.

At our firm, we advocate for patient’s right to access healthcare without apprehension about their confidential information being misused. We thoroughly evaluate the security measures implemented by startups before making investment decisions. Looking ahead, data security and privacy will become even more crucial with the development and adoption of unique identification systems like ABDM and ABHA for daily healthcare use cases.

In your opinion, what are the most significant ethical considerations that arise with the integration of technology into healthcare, and how do you address these concerns when evaluating potential investments?

When integrating technology into healthcare, several ethical considerations arise. To address these concerns when evaluating potential investments, we adhere to the following principles:

• Selling patients only what they need: Healthcare providers should use patient information judiciously to enhance healthcare outcomes, rather than push unnecessary services or products.
• Informed patient consent: Patients must have complete visibility of their data and provide consent for its usage.
• Augmenting patient experience: Technology should strike a balance between efficiency and empathy. While it can improve access and alleviate burdens on clinicians, it should not undermine human interaction and bedside manner.
• Robust safety measures and guardrails: Every health-tech company should prioritise patient safety and well-being by incorporating appropriate measures to mitigate adverse effects.

Our portfolio company, Wysa, exemplifies ethical innovation. Wysa is an emotionally intelligent AI-backed chatbot for mental health. They have implemented safety measures and guardrails, with responses written by clinicians rather than machine-generated. The AI model is continuously refined by judgments from clinicians, making it emotionally intelligent and capable of handling exceptions. Wysa has been recommended by the Mozilla Foundation for its safe handling of personal data, making them one of only two mental health apps worldwide with this recognition.

As technology advances rapidly, what challenges do you anticipate when integrating new technologies into existing healthcare systems, and how do you address them?

Integrating new technologies into existing healthcare systems may face the following challenges:

• Skepticism and fear: Healthcare providers, patients, and regulators may exhibit skepticism and fear towards new technologies. Overcoming this requires gaining regulatory approvals, demonstrating enhanced clinical outcomes, and collaborating with clinicians.
• Clinician influence: Healthcare is significantly influenced by clinicians, and having them as vocal influencers and advocates of new technology is crucial for scaling. Products or services should be positioned as augmenting their ability and productivity, rather than supplanting them.

Addressing these challenges involves building trust through regulatory compliance, robust clinical validation, and close collaboration with healthcare professionals. Demonstrating improved patient outcomes and efficiency can help overcome skepticism and gain acceptance within existing healthcare systems.

What role do you believe artificial intelligence and machine learning will play in revolutionising healthcare, and how does your investment strategy align with this vision?

Artificial intelligence (AI) and Machine Learning (ML) have the potential to revolutionise healthcare. We see two significant areas where AI and ML can make a substantial impact:

• Drug discovery: Traditional drug discovery processes are time-consuming and expensive. AI can significantly speed up the process by training models on vast datasets of pathologies, biological systems, clinical trials, and more. Predictive models can identify target molecules and interactions that have therapeutic value, potentially accelerating the development of life-saving innovations.
• Disease diagnosis: AI algorithms can process various medical data, such as scans, symptoms, sounds, and sequential data, to recognise patterns and provide accurate diagnoses. By leveraging generative AI, realistic medical images and records can be created for dataset preparation. While human verification is currently necessary for diagnosis accuracy, AI can assist medical professionals in identifying diseases earlier and more accurately.

Our investment strategy aligns with this vision by actively seeking opportunities in AI and ML-driven healthcare companies. We believe Indian AI companies, with their access to data, technical talent, and infrastructure, have a significant opportunity to create world-class solutions and expand into global markets. We aim to support and invest in such companies to foster innovation and advance the role of AI and ML in revolutionising healthcare.

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