Great post! I'm happy you addressed the reasons why VCs might not be investing in SDoH companies. Not only do very few exist, but unfortunately, VCs look for businesses with the potential to maximize returns and deliver an outsized financial impact. When it comes to SDoH and issues of inequity, you're typically dealing with a population without resources to pay for services which means the margins aren't there to be attractive for venture funding. More needs to be done in the public sector to systemically fix these issues via funding and programs so the private sector can chime in with creative solutions. Only then will founders start building in this space and VCs start investing.
Great post! I'm happy you addressed the reasons why VCs might not be investing in SDoH companies. Not only do very few exist, but unfortunately, VCs look for businesses with the potential to maximize returns and deliver an outsized financial impact. When it comes to SDoH and issues of inequity, you're typically dealing with a population without resources to pay for services which means the margins aren't there to be attractive for venture funding. More needs to be done in the public sector to systemically fix these issues via funding and programs so the private sector can chime in with creative solutions. Only then will founders start building in this space and VCs start investing.
While this is a great start for SDoH projects, they are really tiny. Lot more will have to happen with lot more money being spent in right way.