Inside the Deal: Healthcare VCs to Watch with Kapil Desai – Growth-Stage Capital That Scales
Welcome to Inside the Deal: Healthcare VCs to Watch, a video series spotlighting investors who are shaping the future of care. In this episode, Kapil Desai—Partner at Catalyst Investors—joins Carrie Nixon to explore how growth-stage startups can raise smart capital and scale effectively.
From provider-centric tech to health system workflows, Kapil reveals what he looks for in a winning investment and how founders can position themselves for long-term traction.
Timestamps
0:00 – Meet Kapil Desai of Catalyst Investors
Carrie introduces Kapil, a provider-informed investor focused on early growth-stage companies.
1:10 – What Catalyst Looks for in Early Growth-Stage Startups
Kapil breaks down the post-product-market-fit threshold and what makes a startup ready to scale.
3:00 – "Slides and Dreams" vs. Scalable Companies
Why repeatable revenue and real customers are a prerequisite for Catalyst involvement.
4:45 – Applying Lessons from Other Sectors to Healthcare
How cross-industry patterns from legal, accounting, and even restaurants inform healthcare investing.
7:00 – Closing the Expectation Gap in HealthTech UX
Kapil discusses how consumer tech has reshaped expectations—and where healthcare lags behind.
9:30 – Founders with Lived Experience: Two Archetypes
Kapil outlines two key founder personas: provider-builders and mission-driven outsiders.
12:30 – The Provider at the Center of the Model
Why provider-focused platforms continue to lead Catalyst's investment thesis.
14:45 – A Common Growth-Stage Misstep: Lack of Differentiation
Founders often point to the problem—but forget to prove why they can win at scale.
16:30 – Proof, Not Pedigree: The Right to Win
Kapil shares how Catalyst assesses momentum and scale-readiness through performance metrics.
18:45 – Finding the Right Investor Fit
Fundraising strategy should serve the business’s goals—not fit a VC’s fund size.
22:30 – Strategy-First Fundraising vs. Always Raising
Why picking the right capital partners is more important than raising constantly.
24:45 – Catalyst's Evolution in HealthTech
From specialty practice management to teleneurology—how Catalyst's focus has grown.
27:50 – Final Thoughts for Founders
Kapil shares a direct invitation for growth-stage digital health companies to reach out.
Quotes from Kapil
“Early growth repeatability, that's the focus.”
Kapil explains why post–product-market fit traction is the real starting line for scaling with capital.“Providers are the stewards who bring care together.”
To improve healthcare, Kapil says, start by empowering the clinicians who connect all the dots.“What's best for the business— let that be your guide.”
Fundraising decisions should flow from your business goals, not investor expectations.
Featured Q&A
What does "early growth-stage" really mean?
Post-product-market fit, with $5M–$10M in revenue, repeatability, and clear traction.
What should founders lead with during pitch conversations?
Not just the problem—but proof of why they are the ones to solve it at scale.
What makes a great capital partner at this stage?
One who fits the business needs—whether that's customers, strategy, or operational input.
How does Catalyst assess investment opportunities in healthcare?
Through real outcomes: improved clinical quality, financial ROI, and stakeholder experience.
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