There are more than 30 startups in the initiative’s portfolio. These startups, hosted in Eretz.Bio’s co-working space in São Paulo, are developing their solutions in an environment of innovation and collaboration, having access to the infrastructure of laboratories and equipment, and to the support of innovation experts. They also benefit from consulting on issues ranging from intellectual property and software development, fundraising and access
to financing.
Tell us a little about the performance of Eretz.Bio. How many startups are incubated at the moment and how does the generation of value for these companies happen?
Eretz.bio is the coworking space in the Albert Einstein Hospital’s innovation area. The space was inaugurated in November 2017. The hospital had already been working with startups for some years and realised that having a space to welcome some of these companies would make sense, as much for them as for the hospital itself. Currently, we have 34 incubated startups. There are two modalities of incubation: on-site, when the startup has a dedicated team in coworking; and virtual incubation – startups that are headquartered in other cities or states, but that have the support of Eretz on several fronts and have access to moving positions, meeting rooms and unique initiatives for incubated companies.
Value generation takes place through various forms of support, ranging from mentorships with hospital and market professionals, to 37 pilot projects or co-development projects. Also, specific interactions such as support on issues related to business development, intellectual property and fundraising.
How are the startups selected and what features are you looking for in these companies and entrepreneurs?
The selection is made continuously throughout the year. In this context, we have a team that is constantly prospecting for new opportunities for startups to work together and also often receives new proposals. An alternative for entrepreneurs who want a relationship with the Eretz.bio is to make an appointment on the pitch session, which takes place.
For the startups to be selected they need to go through three filters: possess at least one minimal viable product; have a project that generates relevant impact on the health environment; and we need to understand how incubation in Eretz.bio can add value to this project.
Regarding the entrepreneurs, we seek those with a strong knowledge of the problem they look to solve and has a team that demonstrates implementation capacity.
Are there segments or types of technology that stand out in the midst of the incubated startups?
Within the health sector, the Eretz.bio works with virtually all types of technologies from digital health to life sciences. There are, however, some cases that deserve prominence, such as the Hoobox, a startup that developed algorithms for facial expression recognition and apply this technology in the health area. An application of their algorithm, developed in partnership with Intel, allows users with mobility difficulties to ride electric wheelchairs by using their facial expressions and was featured at CES this year.
Other startups that deserve to be highlighted for their applications include Phelcom, N2B and Gntech. The first developed a portable retinography [retinal camera] with equivalent quality to the best equipment on the market, but lighter and cheaper. This solution will democratise access to retinal exams. N2B, in turn, is a digital health startup that has developed a tele-nutrition app. In addition to reviews of meals based on AI/machine learning, users can access evaluations made by the nutritionists’ team. Finally, the Gntech works with personalised medicine in pharmacogenetic line.
Tell us a little of your vision on the healthcare industry in Brazil and the critical points for the development.
The healthcare sector in Brazil is characterised by being a mixed system and the private system acting as a complement to the SUS (the public health system). However, regardless of the volume of investment in the sector, the country still ranks low in the rankings of health system efficiency. In this context, it is clear that there are important points of improvements that from better resource allocation to institutional improvements. Among the key points for development are those that affect the financing capacity of the sector (both public and private) as well as those that extend the efficiency in management.
When you observe the investment levels of the countries considered references in health, you can see that Brazil still underinvests in the sector, with very relevant participation of private initiatives. How do you assess the investment volume in health in Brazil and what measures do you deem necessary for the country to achieve the appropriate volume?
Investment in health in Brazil is around 8% of the GDP, of which, 3.8% of GDP is public investment. Those numbers put the country below the average of developing countries. Overall, investment in health is in the context of resumption of economic growth, especially when you think in public spending. In private scope, in addition to the upturn of the economy, regulatory and legal safety are also essential.
It is important to note that just as important as the volume is the quality of the investment. In this sense, Brazil already does a good job with regard to investment in primary care, but considering the characteristics of the population and ageing, attention needs to be focused on preventive care associated with chronic disease and tends to be an investment that pays good dividends.
Being an important player in the health innovation ecosystem, what are the main opportunities in the Brazilian market?
When you evaluate the trajectory of healthcare costs and the ageing trend of the population, you can observe that innovations that democratise the access to better quality services or contribute to reduce costs associated with health, constitute good opportunities. An example of an opportunity in line with this trend are solutions that allow the care or remote monitoring of patients. Such solutions can contribute both to a more efficient service and to an even bigger reduction of hospitalisation of patients, making the system as a whole much more efficient. In addition, we have a healthcare system that is fairly fragmented in terms of data.
The new technologies allow a consolidation of such data. To the extent that new arrangements can reduce this fragmentation or consolidate this data, it opens up space for relevant efficiencies ranging from population health initiatives for preventive and personalised medicine.
New technologies promise to revolutionise the health industry in Brazil. Which are presented as the most promising?
The health sector in Brazil still shows great opportunities for improvement. Among them include those associated with the technologies that facilitate access to health services, such as call centre and the use of artificial intelligence.
In addition, the new models that could emerge from the use of the data generated by the new technologies can add great value to health services.