What is Health InnovatAR?
A HealthTech accelerator and early-stage investment fund that’s for providers and by providers. We target the convergence of healthcare and technology: digital health, connected medical devices and diagnostic platforms.
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The Value Proposition
About Central Arkansas
THE LOCATION: Little Rock
Health InnovatAR will take place in Central Arkansas, which offers an unparalleled quality of life in a thriving and energetic urban environment. In addition to being the business, political, and cultural center of the state, Little Rock/North Little Rock offers ample outdoor and recreational opportunities, as well as down-home Southern hospitality.
In addition to its vibrant health care community, Central Arkansas is home to leading companies across a variety of industries, including finance (Stephens Inc.), data analytics (Acxiom), aerospace (Dassault Falcon Jet), information technology (Windstream), biosciences (National Center for Toxicology Research), high-tech manufacturing (Caterpillar, Molex, LM Wind Power, Welspun Tubular), and fashion (Dillard’s). The region boasts a high quality of life and a low cost of living, as well as many excellent public and private colleges and universities.
In 2011, Arkansas was cited by CNBC as having the lowest overall cost of doing business in the nation.
The Kauffman Foundation ranks Arkansas as the 15th most entrepreneurial state in 2011 in its annual report, the Kauffman Index of Entrepreneurial Activity. The calculated index for Arkansas is at 0.34%, which means there are 340 entrepreneurs per 100,000 adults per month in the Natural State.
Q: What types of companies are you seeking for Health InnovatAR?
A: We’re seeking early stage healthcare companies offering disruptive technologies in the areas of digital health (software), connected medical devices and diagnostics.
Q: How much investment capital will each Health InnovatAR company receive – both initially and at the conclusion of the program – and for what amount of equity?
A: All companies admitted into the cohort will receive $50,000 of seed investment structured through a SAFE agreement or convertible note, the terms of which will be negotiated upon admittance to the program wherein you will execute documents converting your company to Delaware C Corp (if you haven’t already done so) and effecting the initial investment from Health InnovatAR into your company. Potential backend investments will also be made available at the end of the program from a wide variety of Arkansas-based investors. Any such investments will be made pursuant to terms negotiated between the company and investors.
Q: Will I or my team be required to move to Little Rock for the duration of Health InnovatAR?
A: No relocation or onsite presence is required. You’ll need to fly in and out of the state to conduct your pilot projects with Arkansas providers, just as you would with any other pilot project.
Q: How much of the proceeds from my initial investment capital will be required to be spent on legal or other services?
A: On Day 1 of Health InnovatAR, we will begin the program with a document signing ceremony wherein you will execute a package of legal documents to convert your company to a Deleware C Corp (if you haven’t done so), document the investments into your company, and various other things. These documents will help position your company for raising capital and prepare you for success. The documents will be prepared by Jamie Fugitt at PPGMR Law, whose expertise includes the representation of many early stage companies executing capital rounds. He has an outstanding reputation among both entrepreneurs and investors, and was our first choice to represent each of the companies in Health InnovatAR. The legal services provided to you by PPGMR Law related to this initial work preparing your company to raise capital will be provided to you at no cost. This represents a significant value of this program. If your company already has legal counsel, you may choose to use them. However, you will be required to use the forms (or substantially similar documents) prepared and provided by Health InnovatAR and your fee arrangement with your legal counsel will be negotiated separately by you and your counsel.
Q: What are the general day-to-day time requirements during Health InnovatAR?
A: You’ll be working with the administrative and clinical teams at Arkansas Heart Hospital and UAMS - in conjunction with the Health InnovatAR team - to develop and execute custom work plans around the pilot projects you wish to complete with our hospital partners. Additionally, on a national level, you’ll be connected to healthcare venture investors, subject matter experts and corporate partners, based on your individual needs and requests. We’ve worked diligently to develop the Health InnovatAR network on a national level, and we stand ready to bring those relationships to bear for you.
Q: How much access will I have to the senior leadership teams at UAMS and Arkansas Heart Hospital?
A: You will have extensive access. Each of these organizations is sponsoring the accelerator because each wants to invest in and empower health care innovation, and each has strong support for Health InnovatAR at the very top of the organization. We want you to cultivate relationships with the senior leadership teams, and we will do everything we can to ensure you’re getting the access and guidance you need. Access like this is a differentiating factor for our accelerator, and we intend to translate that to being a differentiating factor for the trajectory of your company.