Investor Diligence

Valuation measures adoption. ITD measures durability.

For venture and growth investors and corporate development teams looking at healthcare AI.

Who it's for

Growth built on compensation work can disappear when a payment rule changes.

Risk adjustment and prior authorization have both changed within the life of a typical fund. The diligence question is simple: which kind of work does this product serve?

What you get

  • A classification of the work the product serves
  • A durability review: which rule or upstream failure it depends on, who controls it, and what is already moving
  • A map of buyer, user, risk-bearer and patient, and where the product's value lands
  • An authority test of any clinical AI output
  • A short memo you can drop into an investment committee packet
The questions

What ITD asks before it asks how fast a company grows.

  1. Which kind of work does it serve?

    Load-bearing, compensation, sediment or unassigned. Growth on compensation work is growth with an expiry date.

  2. How long will the workaround last?

    What rule, payment policy or upstream failure the product depends on, who controls it, and what is already moving.

  3. Who pays for load-bearing work?

    The fundable models sell into the budgets that carry the outcome: risk-bearing providers, value-based contracts, payers and employers.

  4. Who captures the value of deletion?

    Under risk-based payment, the organization that deletes keeps the savings. A company that deletes for a living can price on a share of the cost it removes.

Ways to engage

From a first read to a full portfolio.

Every engagement starts with a one-page written scope: the outcome, the deliverables, the timeline and the price.

Quick read

Scope
One company, before a first meeting or term sheet
You get
A one-page classification and the top durability risk

Full diligence review

Scope
One company in active diligence
You get
Classification, durability review, stakeholder map, authority test and an investment committee memo

Portfolio scan

Scope
Every healthcare AI company in a fund or pipeline
You get
A durability ranking, with the companies most exposed to policy or funding change flagged

Diligence work is confidential.

Looking at a healthcare AI deal?

Ask which kind of work it serves before you ask how fast it grows.

Book a diligence conversation