FullSizeRender-1It would make Hunter S. Thompson proud. Thousands of power brokers troll the hotel ballrooms of SF to find scientific genius in a booze-fueled, finger food filled courtship ritual.  It began Sunday night at the aptly named kick-off event BioCentury/E&Y Circus Reception (including the performance pictured above). M&A, VC, PE, and other acronyms for mega-money from all over the world descended on the alter-ego of The JP Morgan Healthcare Conference: the ancillary reception side shows.

While the actual conference is held at the St. Francis hotel in San Francisco every year at this time, it is no secret that most people will never set foot in that place. At the same time there is the BioTech Showcase at the Parc 55. And at least 40 ancillary events and receptions with hundreds of people crammed together looking for money.

How Does a Healthcare Innovator Stand Out?

It is a highly optimistic week. Science is clobbering disease and knocking out problems once thought unsolvable. Biotech stocks spike during the conference. It seems like everyone has cash. The wolves lick their chops preparing for imminent deals and IPOs that start right here.

Yes, there is real science. About a third of the conversations one has at the receptions will trigger amazement and even awe….IF that genius can just corner $15M to $30M in a Series A round. And that is never an easy task. In fact, many would probably agree that going thru the grind necessary to raise capital is at least as hard as the process of bringing the genius idea to reality. We’re not talking about the mega-pharma deals that will be reported by CNBC and Bloomberg. We’re talking about the people like Dr. Richard Vasquez, a Northwestern Hospital surgeon with a workflow app, ‘Safe Start’, that brings a smart surgical checklist to OR docs. (Full disclosure: Dr. V. is a personal friend, but not a customer.) These ‘doctorpreneurs’ provide simple quality control products, better ways to practice medicine and front line insights. There are also good old fashioned entrepreneurs who see market opportunities to bring tech products to the admittedly slow adopter healthcare crowd. Add to that the vendors, suppliers, labs, and other ‘pieces’ of the puzzle and you have an interesting mix. It’s one-third each of Innovators, Investors and Vendors. The Innovators need the Vendors to bring the product to life and to market, but first they need the Investors. It can all come together here. But it’s also a little like PowerBall.

What’s a JP Morgan Healthcare Investor Look Like?

Yes, there are investors with vision who want to make the world better. But there are many more who want to play it safe. I spoke to a prominent global healthcare investor who acquires promising drugs and therapies, manages the transition, and leads the sale or IPO. The odds of him taking on your company are .001 %. Only drugs that have zero consequences of causing you to take another drug to overcome symptoms of the first drug are of interest. The reality of the investor community is filled with the narrowest bands of green light. Incidentally, this investor also wants to remain completely out of the spotlight, literally, as he moved away from the Circus act and the cameras capturing the onlookers. So how do you find THAT guy if you do have the goods? Or how do you find the person who IS here and looking for your product, service or other healthcare innovation but remains lost in a sea of receptions, sloshing drinks and pitches?

Unknown investors have the same problem as SmallCo

On the flip side, the Investors have the same problem. They are all gaming for the known winners. And those companies already have money, great boards and traction. I tell every Investor, Innovator and Vendor I meet this week the same thing: Write a post about your company or your background and post it on LinkedIn. Now. That way IF someone is interested in learning more they will have somewhere to start.

At least the JPM16 parties provide a little joy and abundance around a very long traveling circus.