Mehdi Attarha to health tech companies: If you want to enter the US market, come to Canada first

Mehdi Attarha joins Tehnopol’s and Connected Health Cluster’s team of health tech mentors. He is currently residing in Canada and says that Estonian health tech companies have an increasing appetite towards the Canadian market.

We spoke to him about his background, Estonian healthcare system and which foreign markets should health tech companies keep their eyes on.

First, a little bit about your background – what is your area of expertise and what kind of start-ups do you mentor?

My area of expertise is in the investment, development and operation side of things. I have set up greenfield businesses of various levels of complexity and size.

For the past 18 years, it has been all about healthcare and health technology. Prior to that, I spent the first part of my professional career focused on supply chain strategies, so I understand the business and the operational side of things as well. I also have a global perspective since I have lived and worked in North America, Europe, Middle East and have invested and collaborated with business partners in Asia.

You’ve been on both sides of the table – an investor and seeking investment. Which role do you prefer and why?

Both are exciting! It’s good to be on both sides of the table because regardless of on which side you are at, you understand the mentality and perspective of the other side. As an investor, I have had the opportunity to utilise my expertise, experience, and passion towards the things that make real impact. I think every founder should keep that in mind and ask themselves “are we making real impact or not? Do we have the right team to deliver on the promise?”.

Seeking investments is very challenging. You have to understand the investors’ mentality. You have to remember that while the investors are “betting” on your idea, what they really bet on is the management team and the founders. I think that’s where there’s a gap – the founders don’t always grasp the idea that the investors are investing in you and your team and the ability of this team to take the idea from theory and a piece of paper to reality. Hence, it is not just about having a great product, concept, technology or solution – but equally as importantly about assembling a team that can deliver on all aspects.

Where do you see the biggest potential in Estonian healthcare right now? What might be the next big thing in healthcare?

The Estonian healthcare system is very similar to the one in Canada – the single-payer model which has its own advantages and also disadvantages. Estonia is in a better position because you started from a blank piece of paper about 30 years ago and have done a great job. But when developing solutions for healthcare industry, you have to look at it with a global perspective.

Healthcare delivery models are local, but healthcare needs are global. So, we have to drop the boundaries and think about what are the global healthcare needs. Once we look at it from that perspective, we have to think about the depth and breadth of the issue we are trying to address. How widespread is it? For example, diabetes – how widespread is it globally? How critical is it? Is it life threatening? Are people dying because of a particular health issue? How does the solution I have caters to those two gaps – the depth and the breadth?

Then you have to look at the global market. What segment of the global population am I targeting? While health care needs are global, more developed economies have managed to address the basic needs but the emerging markets and developing economies might have a wider range that needs to be covered. That sets the tone for the extent your solution will be adopted. Alternatively, your solution could be addressing a very niche health concern. There are so many ways to slice and dice this and it requires in-depth consideration, a solid strategy to support, a well-thought-through execution plan, all complemented by a knowledgeable and experienced team.

But let’s talk about Canada, have any Estonian health tech companies entered the Canadian market?

I am seeing more and more appetite from Estonian companies to come to Canada. Everybody wants to be in the US, everybody knows there’s a lot of money in the US. However, the US market is also very fragmented and challenging to navigate. Those same characteristics that make it very attractive are also the ones that will create challenges for a new company to establish the right base at the start. The Canadian healthcare model is very similar to the Estonian one which makes it an ideal landing place for Estonian companies to come & set-up, test and validate their solutions, raise interest and funds, and in parallel start having a presence in the US market. One has to keep in mind the two markets are not mutually exclusive.

The Estonian community in Canada is the largest community outside of Estonia and is very active. They are currently building a new international Estonian centre called the KESKUS in Toronto, and there will be dedicated space for accelerators and start-ups. It’s the right time to come to a new set up with new energy.

You mentioned Canada and the US, but what other regions you recommend to keep an eye on?

A lot is happening in Africa and Asia, so keep your eyes on that. But my advice is to include UAE, Saudi Arabia and Egypt in your plans. There’s a lot of investments moving from Saudi and UAE to Egypt since it is a very large market with a lot of potential. But you have to remember that ecosystem in those markets has matured over time. There are well reputed centres that support the start-up/scale-up companies. The investors are very savvy. Often times they want you to have physical presence in those markets if you would like to tap into that ecosystem. And this is not unique to GCC countries – investors everywhere want to be close to the base of their investment, they want to have some kind of control and visibility. Founders from other parts of the world need to keep these factors in mind when going to those markets. The solution, the approach, and your competitive elements and many more need to be there before approaching those markets. Simply put – they don’t give away free money for just any idea or solution! On the top of everything else, there are the nuances in doing business in different parts of the world that need to be taken into consideration.

In general, my suggestion to start-ups and scale-ups is to speak to people in the industry, ask questions, and hear different perspectives – There is an old saying that says: only everyone knows everything!