Oxford capital eis fund
Investor Portal

Why Oxford Capital Invested in HealthKey 

In our recent #backingfounders interview, David Jørring, co-founder of HealthKey, shares insights into the innovative digital health company that aims to simplify and enhance access to healthcare.  

HealthKey is described as a “digital front door” focused on preventive and proactive health, specifically designed for employers and insurers to provide a marketplace of healthcare services and products to employees.  

The Birth of HealthKey 

HealthKey was born out of the need to simplify the unnecessarily complicated process of accessing healthcare products and services. The platform integrates a network of health providers and payers, such as insurance companies and corporations, to offer users a seamless experience. HealthKey enables users to discover health products, understand coverage options, and automate payments, eliminating the hassle of reimbursements and out-of-pocket expenses. 

The Role of Insurers and Corporates 

David Jørring highlights two key drivers behind insurers’ interest in platforms like HealthKey: the push for better user experiences, and the economic benefits of preventive health. Insurers are beginning to see the long-term financial benefits of investing in preventive services, which are less costly than treating illnesses. By offering easy access to digital health assessments, telehealth, and other health services, insurers can keep people healthier, reducing long-term costs. 

Founding and Team Dynamics 

Interestingly, Jørring and his co-founder, Tudor Cotop, did not know each other before starting HealthKey. They met through a series of coffees, phone calls, and emails, brainstorming the idea before deciding to work together. Their complementary backgrounds—Jørring in consulting and his co-founder in product development—have been crucial to the company’s success. Their early team-building strategy focused on hiring individuals who excelled in areas where they lacked expertise, such as product design. 

Early Wins and Strategic Partnerships 

One of HealthKey’s pivotal moments was partnering with Aviva, facilitated through the Founders Factory Studio. This early relationship allowed HealthKey to pilot its platform and gain valuable insights directly from an insurance provider, speeding up the development process and ensuring the platform met real industry needs.  

Vision for the Future 

Looking ahead, HealthKey aims to provide a comprehensive front door to health, integrating health data and giving users more control over their healthcare journey. The goal is to empower individuals to manage their health proactively, contributing to longer, healthier lives. By expanding its network and deepening integrations on both the payment and health data sides, HealthKey is poised to transform how people access and manage their health. 

Estimated reading time: 2 min

 

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

  1. You could lose all the money you invest
    1. If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.
  2. You are unlikely to be protected if something goes wrong
    1. Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.
    2. Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
  3. You won’t get your money back quickly
    1. Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.
    2. The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.
    3. If you are investing in a start-up business, you should not expect to get your money back through dividends. Start-up businesses rarely pay these.
  4. Don’t put all your eggs in one basket
    1. Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
    2. A good rule of thumb is not to invest more than 10% of your money in high-risk investments. https://www.fca.org.uk/investsmart/5-questions-ask-you-invest
  5. The value of your investment can be reduced
    1. The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.
    2. These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.

 

If you are interested in learning more about how to protect yourself, visit the FCA’s website here.