The Pulse by Wharton Digital Health
00:07:32 · Lindy, Caroline Xie
[00:07:32] S1: Wow. Those are some truly impressive stats. And, you know, given how fast the firm has grown, when you first joined, it was only a four person team back in 2013. I know a lot of our listeners are either thinking about founding businesses or joining a very small team. What kind of drove your decision to join the fund at that early stage? [00:07:56] S2: Yeah. I I think it's... It starts with the team. You know, as I mentioned, even when I first came in to interview, I was really struck by the sincerity I experienced. And it's just a a really amazing opportunity for me personally to really get involved in in technology and have a front row seat. The the the unique nature and ecosystem here at Iconiq is not just tech, by the way. It's across all industries, but everyone is really excited about really affecting impact and change in their respective parts of the world. And, you know, to to your point, I also love that Iconiq in itself is a start up. And there's an opportunity to really lay the foundation, set up a lot of systems, processes, build out the team, you know, chart out the vision, and and what we want to accomplish. And it's been a... It's been an incredibly exciting and rewarding experience. And today, our team is now about a 100 people and globally distributed across three offices, and and Iconiq is over 500 people. [00:09:02] S1: That's awesome to hear. And for you personally, would love to learn a little bit more about how has your role changed over time, and what has excited you about investing after so long in this job?
00:09:02 · Lindy, Caroline Xie
[00:09:02] S1: That's awesome to hear. And for you personally, would love to learn a little bit more about how has your role changed over time, and what has excited you about investing after so long in this job? [00:09:15] S2: Yeah. So I I started at Iconiq as an associate, and I've been very privileged to partner with exceptional category defining companies. I have learned a ton from the companies we work with and our team who have been just incredibly supportive of me professionally and and personally, the the core of what I do continues to be the same. Right? We are deeply understanding market trends and themes. We spend time with emerging category leaders and category leaders and do everything we can to to support them. And because we partner with such a wide range of technology companies across software, health care, fintech, AI, and more, I'm constantly learning. And as you know, these categories are so incredibly dynamic, and we're also constantly thinking through how we can further support our companies, help see around corners, and really try to accelerate their success even further. And it's also, you know, in addition to all of the learning and and staying at the forefront of the innovation cycles, it's really energizing to see ultimately the impact that our companies are making in the world and and having been part of that building journey. [00:10:36] S1: And to your point about working with category defining companies, you've also been involved with some incredible health care businesses. What is the best investing advice you've ever received?
00:10:36 · Lindy, Caroline Xie
[00:10:36] S1: And to your point about working with category defining companies, you've also been involved with some incredible health care businesses. What is the best investing advice you've ever received? [00:10:47] S2: It's tough to pick one. I I think I think it really starts with exceptional founders and teams and supporting the the most exceptional team, really, you know, their depth of understanding of the market, the strategic direction, and their appreciation of the challenges. Many times, it came at... Came out of a a personal experience or a prior business experience. And and their ability to really execute and attract and retain high quality leaders and also cultivate a broader group of exceptional talent to further accelerate the success of the business, they will run through walls, and they will prevail regardless of market cycles. And so I I think it it all comes back, particularly in technology businesses, to to the people who are building the companies. [00:11:41] S1: Got it. Yeah. Definitely sensing a trend or pattern of people here. So now let's pivot a little bit. We hear that 2025 is already shaping up to be a very exciting year in the deal making space. What are you most excited about in health care this year?
00:11:57 · Caroline Xie
[00:11:57] S2: Definitely an exciting year. There's a lot of different trends, and maybe I'll I'll share a few. So the first one, I think we are all aware is that consumers are increasingly discerning about where, how, and from whom they receive care. And we're all patients, consumers. We all care about quality. We're sensitive to wait times, and we want convenience in terms of proximity as well as the flexibility in how we would do the visit, whether it's in person or virtual. And I think for providers, it's important to to put consumers and patients at the center, but not not only from an a... An experience perspective, but this can really translate into tangible financial improvements for them because of more patients, better retention, and stronger adherence to care plans. Plans. And, you know, with with this, there's also more efficiency and streamlined workflows, and, ultimately, you know, everything leads... Would lead to better quality of care and outcomes. And as we see ourselves, consumers, take more control of our health, this also leads to increased focus on wellness and preventative care. The the second one that, we're very interested in is is care is increasingly moving outside of the traditional four walls of the hospital, and patients want to get better in the comfort of their homes. I believe a meaningful portion of the total cost of care for Medicare fee for service and Medicare Advantage are actually shifting from traditional facilities, clinical settings to the home. And this would be a more cost effective way of offering high quality care and higher comfort care for the patients. In addition to that, we have seen strong social and community based support services have demonstrated ability to lower health care use and costs and drive, improved health. As you can see, a lot of this comes back to the tremendous health care costs in The US. It's approaching 20% of GDP, and and it's continuing to rise. And the cost of health care in The US, I think, by per per person is over $12,000, and that is nearly double that of comparable countries. And our out of pocket costs are at an all time high.
00:14:39 · Caroline Xie, Lindy
And so as we think about, you know, ways to try to bend the cost curve, at the same time, patients and consumers also need patient friendly solutions to really understand the cost, you know, understand their benefits, better utilize their benefits, and manage their medical bills. And so I think there are opportunities for really innovative solutions at the intersection of of consumer health care and and fintech. And then, of course, the the broader biggest technology topic is AI. And in 2025, I think it'll be an important year as AI adoption continues, as pilots evolve, and we will see what the longer term adoption and engagement can look like as it spreads and the corresponding ROI. [00:15:32] S1: Got it. Yeah. Those all make sense. I'd love to double click a little bit into one of the first points that you mentioned about your increased focus on wellness and preventative care. Are there any specific trends or business models that are particularly exciting now these days to you? Because I think there's a lot of ways you can approach that from others. You see a lot of things happening in longevity care. There's a lot of consumerization of health care. How are you thinking about that space?
00:16:02 · Caroline Xie, Lindy
[00:16:02] S2: Yeah. So I I think there's a a a number of different ways to approach this, and it all... It comes down to what is convenient and accessible and also of high quality. And, ultimately, when consumers desire to take more control of their health, you wanna understand... You know, you could use a number of solutions like remote patient monitoring and other wearables to continuously track how you're doing as well as ability to incorporate maybe more diagnostics from genetics, blood, other other areas to really inform how you're doing on a continuous basis. And I think the question is, how does that or does that integrate into the provider setting? Right? There's... Some of us have relationships with primary care physicians. Some of us don't. And are there more modalities of care in which there could be an easier access to somebody from a provider standpoint who is... Has a relationship and who is looking after after you. And so how do you take all of these more consumer driven data and and wellness about yourself? And does that does that need you? Or maybe it doesn't. But does that... Do you want that to be ultimately integrated into your provider primary care appointment visits or other doctor visits? [00:17:32] S1: Awesome. And the other topic that I wanted to definitely hit on was your last point around AI and how 2025 is going to be an important year. I think you hear a lot of people saying that health care is where the biggest opportunity for more transformation lies. What applications of health care do you think we'll see the biggest winners in?