How Sam Toole and Primary Are Shaping the Future of Healthcare
Transforming Outdated Systems, Adapting Funding Models, and Empowering Founders
Primary Venture Partners has established itself as a cornerstone of NYC’s tech venture capital scene. What sets the firm apart is its robust in-house team specializing in talent acquisition, go-to-market strategies, and operational support, as well as its ability to incubate new businesses. By combining deep market insights with a collaborative approach, Primary is dedicated to helping founders navigate the challenges of building and scaling their companies.
Sam Toole, a partner at Primary, brings a unique perspective to venture capital. Growing up in Massachusetts, he began his career as an entrepreneur, launching a surf school and an e-commerce business. After gaining experience at a software consultancy and helping scale Nomad Health, he shifted into investing. Over his five years at Primary, Sam has honed his focus on early-stage healthcare, applying his hands-on operational background to guide startups toward success.
In a recent talk, Sam shared his insights into the complexities of the healthcare industry and offered valuable advice for founders.
Healthcare Innovation: Challenges and Opportunities
Sam highlighted three key areas shaping the future of healthcare startups:
Outdated Systems: Despite advances in technology, many areas of healthcare still rely on manual, outdated processes—such as the fact that 80–90% of specialist referrals are still faxed. This inefficiency presents a significant opportunity for software-driven innovation.
AI’s Transformative Potential: AI-native solutions are already streamlining administrative processes and improving care delivery. While the current focus is on back-office functions, Sam predicts that the next decade will bring transformative changes to clinical care experiences.
Capital Needs for Care Delivery Startups: Unlike traditional tech startups, care delivery businesses require more time and resources to demonstrate results. Sam noted that traditional venture funding models may not always align with these needs, emphasizing the importance of flexible funding structures to support long-term growth.
The Traits of High-Performing Founders
At Primary, the ability to learn and adapt quickly is a hallmark of the founders they back. Sam underscored that rapid learning velocity and adaptability often outweigh having all the answers upfront. He looks for entrepreneurs who openly acknowledge uncertainties, test their assumptions rigorously, and iterate quickly based on feedback.
“Startups are hard,” Sam remarked, emphasizing that success comes down to how founders learn from mistakes and recruit exceptional talent. Primary pays close attention to a founder's journey, focusing on how they’ve evolved over time. Founders with quick learning loops and the ability to build strong teams consistently stand out.
Early Priorities for Founders: Customers and Team
Sam advises early-stage founders to prioritize two critical areas: deeply understanding their customers and building a top-tier team.
Customer Discovery: During the pre-product-market-fit phase, founders should spend significant time with potential customers. “Finding product-market fit is hard, but it’s the most important thing,” Sam said, emphasizing the value of deeply understanding customer needs and iterating accordingly.
Recruiting Talent: Success, Sam noted, is “so much about the people.” Beyond the founder’s individual abilities, the strength of the team they build can make or break a company. Exceptional recruiting is essential for creating the foundation of a successful startup.
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