How digital healthtech startups can gain investor trust

Convincing investors that a digital medical solution can achieve real-world adoption and traction in an increasingly competitive digital health market is essential for healthtech companies seeking to scale. But what do investors want to see before committing healthtech funding to a startup – and what gives them confidence in its ability to succeed over time?

To find out, we spoke to Pierpaolo Padula, Principal at BVP (Brightlands Venture Partners), who participated in a panel discussion at the European Digital Healthtech Conference 2026 in Luxembourg. With a background spanning corporate R&D, consulting, startups and venture capital, he leads BVP’s early-stage healthtech and medtech investments and is involved in the launch of a new health fund.

Achieving real adoption

What do you see as the most critical success factors for achieving real adoption of a digital medical device – and what are the blocking points that most often prevent a promising solution from reaching patients?

Pierpaolo Padula: A key success factor for any health technology solution, regardless of the subsector, is that it is really solving a clinical need that is currently underserved. The tool must have clear potential to enhance both the end-user experience and the clinical outcomes.

Entrepreneurs also need to be able to demonstrate how their solutions move the current state of the art forward. This is key to unlocking reimbursement by national health systems or insurers. Many solutions fail because companies lack understanding of who would be willing to pay for their offering and whether it fits into an existing payment scheme. If the buyers don’t see enough convenience or advantages, they won’t pay.

Many solutions fail because companies lack understanding of who would be willing to pay for their offering and whether it fits into an existing payment scheme.
Pierpaolo Padula, BVP

Another typical reason why solutions fail is that they only incrementally improve the status quo. Frankly, this is not enough. Right now, we risk seeing a flood of AI-powered innovations that solve narrow, specific issues in a piecemeal fashion but lack a systemic approach. As investors, we want to see that the companies we back can provide a more transformative gain.

Earning investor trust

What are the most important things a digital healthtech company can do to earn the trust of investors?

At BVP, we invest in early-stage companies, so for us, the team is crucial. We are looking for teams with a deep understanding of how their solution can solve the targeted problem in a unique way.

We are looking for teams with a deep understanding of how their solution can solve the targeted problem in a unique way.
Pierpaolo Padula, BVP

The uniqueness doesn’t have to be technical. It can also be related to the company’s business model, for example a way to create value that differs from that of competitors, or the capacity to have a specific type of partnership with a key stakeholder. However, when the solution is technology-based, we want to make sure that it is protected by intellectual property, unique data assets or deep domain expertise. Nowadays, especially with the extensive use of artificial intelligence, progress is so fast that sometimes a new solution feels obsolete the day after you assess it. For us, it is important to understand what is unique and how that can remain over time.

AI as a differentiator

When you evaluate an AI-driven digital healthtech startup, what gives you the conviction to invest – and what are the warning signs that make you walk away, even when the technology is exciting?

Our compass is always the clinical need and the impact of the solution. We see AI as an enabler – probably the most important one these days, as with AI you can make progress in areas of the health sector that until recently, we didn’t even think could be addressed.

If the AI is just a commodity that anyone could replicate, it isn’t a competitive differentiator.
Pierpaolo Padula, BVP

When assessing AI-based startups, we want to see the uniqueness of their health data, where the data came from and how it was used to train the algorithms. We also want to understand how the model will be updated and continue to move forward with time. A third criterion is whether the AI model itself is truly unique, or whether AI is simply used as a supporting tool – a distinction we must factor in when valuing the company. If it’s just a commodity that anyone could replicate, it isn’t a competitive differentiator.

Beyond AI: Integrating care pathways

How do you assess an AI-driven healthtech company differently from one that does not rely on AI?

Today, we inevitably challenge any company that is not using AI. Progress is moving so fast that I would need a very compelling argument to understand how a startup without AI would remain competitive against players who leverage it to accelerate their development – whether in software, diagnostics or even physical products like robotics.

The uniqueness of a solution will be how it is built to integrate distinctively with care pathways and the rest of the healthcare system.
Pierpaolo Padula, BVP

AI will be everywhere in the coming years, but it will gradually become a commodity. The uniqueness of a solution will be how it is built to integrate distinctively with care pathways – the structured sequence of clinical steps a patient follows – and the rest of the healthcare system.

Key investor criteria for digital healthtech startups

The message from Mr Padula for digital healthtech companies seeking funding is clear: investors are looking beyond the technology itself, and startups should:

• Solve a clearly underserved clinical need
• Build a founding team with deep domain understanding
• Demonstrate how the solution advances the state of the art
• Have a clear understanding of the payer landscape and a credible path to reimbursement
• Ensure the technology is defensible over time
• Use AI meaningfully – not as a commodity layer
• Understand who the real users are and design for their experience across the full spectrum
• Show how the solution integrates with existing care pathways

As Luxembourg continues to strengthen its position as a hub for digital health innovation, events like the European Digital Healthtech Conference provide a valuable platform for startups, investors and health sector stakeholders to connect and exchange ideas. Pre-register for the 2027 edition to be part of the conversation.