From Building HealthTech to Investing in It: Laura Hilty’s Key Insights.

In the latest episode of Digital Health Interviews, host Alex Koshykov sits down with Laura Hilty, Partner at HealthX Ventures, to explore what it takes to build—and back—successful healthcare startups. With a unique background that spans product leadership, M&A, private equity, and venture capital, Laura brings a rare dual perspective: that of a former operator who now invests in digital health companies at the earliest, most fragile stages.

For founders, innovators, and investors alike, her message is both cautionary and empowering: brilliant ideas aren’t enough—you need operational discipline, emotional intelligence, and a deep understanding of how the healthcare system actually works.

From Epic to Exits: A Career Built on Execution

Laura’s journey into healthcare began at Epic, one of the most dominant players in the electronic health record (EHR) space. There, she developed a keen understanding of how clinical workflows and data systems interact—skills that would become essential in her later roles.

After Epic, she joined a small startup in its early days—just 30 people strong—and played a key role in scaling it to a multibillion-dollar acquisition. This real-world experience shaped her investment lens. “I saw how hard it is to build in healthcare,” she reflects. “It’s not just about moving fast—it’s about moving right.”

Today, as a Partner at HealthX Ventures, Laura uses that experience to support the next generation of founders. The fund is one of the most active seed investors in digital health, focusing on companies building tools for care delivery, workflow efficiency, and population health.

Operator First, Investor by Design

“We’re former builders,” Laura says. “We’ve been in the trenches. We know what it’s like to struggle with product-market fit, regulatory hurdles, and enterprise sales.” This operator-first mentality is a core part of HealthX’s identity.

The firm typically leads seed and early Series A rounds, with check sizes ranging from $500K to $5M. But what founders receive goes far beyond funding. Laura and her team actively help portfolio companies refine their go-to-market strategies, build stronger teams, and navigate the labyrinth of payer-provider dynamics.

Rather than taking a purely financial view, HealthX places strong emphasis on execution quality and operational readiness. “We look for founders who have lived the problem,” Laura explains. “People with a deep understanding of the pain points they’re trying to solve—and a plan to solve them sustainably.”

Why Healthcare Still Attracts Investors

The digital health market has seen its ups and downs. From the highs of pandemic-fueled telehealth adoption to the cooling of public market sentiment in 2023, many startups have struggled to raise capital or find paths to profitability.

And yet, Laura remains confident in the long-term fundamentals. “Healthcare is one of the few sectors that remains essential, no matter the macro environment. People will always need care,” she says.

She also points to a growing appetite among strategic acquirers—health systems, payers, pharma, and even retail health giants—for digital solutions that improve care access, quality, and efficiency. “An IPO isn’t the only success story,” she says. “Sometimes the right outcome is a strategic acquisition that puts the product in the hands of millions.”

AI in HealthTech: Power, Potential, and Pitfalls

Artificial intelligence is one of the most hyped topics in healthcare, but Laura encourages founders to go beyond the buzz. “The best teams don’t pitch AI,” she says. “They pitch solutions.”

For HealthX, AI is most compelling when it’s deeply embedded in solving real problems, not when it’s used as a marketing badge. She sees the most value in AI that can automate administrative tasks, optimize clinician workflows, and uncover insights from fragmented data.

“Now that EHRs have digitized so much of healthcare,” Laura explains, “we finally have the infrastructure to train useful models. But the models are just part of the picture. You need trust, integration, and workflow alignment.”

She cautions against building solutions in isolation. “If your AI product makes a doctor’s job harder—even slightly—they won’t use it. Full stop.”

The Real Reason Startups Fail

In Laura’s view, the high failure rate of healthcare startups has less to do with innovation gaps and more to do with operational execution.

“It’s rarely about the idea—it’s about the follow-through,” she says. Many founders underestimate how long it takes to sell into health systems, how complex stakeholder incentives are, or how difficult it is to scale while maintaining quality and compliance.

HealthX looks for founders who combine humility and conviction—people who are curious and coachable, but who also know when to push forward with confidence.

“You need to listen to the market—but you also need to believe in your own vision,” Laura adds. “That balance is everything.”

Fundraising Advice: The Clock Starts Ticking

For founders considering venture capital, Laura offers a reality check: “Get as far as you can without outside money. Once you take VC, the clock starts ticking.”

Venture-backed companies face pressure to grow fast, and while that path can unlock incredible opportunities, it also increases risk. Laura recommends that founders bootstrap early, validate their ideas with real users, and prove traction before raising institutional capital.

And when is it time to raise? Focus on distribution, not just features.

“You can’t just build a great product,” she says. “You have to figure out how to get it into people’s hands. That’s what separates great builders from great businesses.

Beyond Capital: What Founders Really Need

In closing, Laura emphasizes that the best investor-founder relationships are partnerships, not transactions. HealthX isn’t just writing checks; it’s building long-term relationships based on mutual trust, clear communication, and a shared mission.

“We’re not here to chase unicorns,” Laura says. “We’re here to help build real companies—ones that make care better, easier, and more equitable.”

For founders navigating one of the most challenging and rewarding industries in the world, her message is clear: success comes not from hype, but from humility, discipline, and patient ambition.