We are thrilled to share that we led a $5 million Seed Investment into MedScout, joined by our friends at LiveOak Venture Partners, Alumni Ventures and a16z Scout Fund. You can read MedScout’s official announcement here.
Historically, sales for medical technology and life sciences companies have been very people and live-interactions heavy. In fact, these companies spend, on average, 2-3x more on SG&A than typical technology companies. But with the pandemic forcing these companies to change the way they sell, Life science companies are now investing more into marketing and sales data. They're also leveraging tools to prioritize where to hire reps, focus them on the best opportunities, and enable them to reach out to build a pipeline.
Because these industries are typically dependent on outbound selling, they need a platform that sales reps, marketing, and leaders can use to execute an ABM sales motion. The legacy data player in this space is built for research — it doesn’t have the functionality that a sales rep needs to prioritize opportunities in their territory, connect with the doctor, and provide them with referral data to help them improve their own practice.
Enter MedScout — a revenue acceleration platform that combines the latest medical claims intelligence across public and private payors, with an intuitive user experience built for sales professionals and leaders. Customers we spoke with raved about the ease of use — sales reps can prioritize and map out their weekly schedule in minutes (even down to the days a doctor is usually in a location), while receiving valuable referral data to build a relationship with the doctor. Additionally, sales leadership gains better insight into where opportunities are, and how to align sales and marketing efforts against those opportunities, to ultimately improve the effectiveness of the sales organization. We believe the same evolution is happening in medtech sales that happened in technology sales — companies are leveraging data and technology to drive more efficient results.
We first met co-founders Skylar Talley and Casey Shattuck when they applied to be a part of our Stage 2 Capital Catalyst 2022 program. Skylar and Casey had worked together previously at a cybersecurity company, when Casey saw an opportunity to solve this challenge for his father who was a SVP of Sales at a life sciences company.
Throughout the Catalyst program, we were impressed with their thoughtfulness around the product and user experience, as well as aligning their GTM approach to the customer. Skylar shares, "Our time in the Catalyst program was nothing short of transformative for MedScout. We laid the groundwork for understanding our unique path to product-market fit and built our first GTM roadmap. These learnings and other strategic frameworks we implemented as part of the program played a crucial role in helping us to 5x the revenue base from Q4 of 2022 to now."
To learn more about MedScout, visit: https://www.medscout.io/