Sam Toole
Investor, Primary
Sam Toole is an investor at Primary. He has a non-traditional background, starting as a surf school entrepreneur before becoming the first salesperson at Nomad Health. In this conversation, Sam shares his insights on investing in healthcare startups and what he looks for in founders.
What did Sam teach us?
- 01
Sam believes that operator empathy is a key strength for investors, but it's important not to rely on outdated strategies from the past, especially with new market dynamics like AI.
- 02
Founders who haven't directly engaged with their end-users to understand their daily workflows and incentives are a significant red flag, as it indicates a superficial understanding of where value is created.
- 03
Primary prioritizes exceptional founders over market size, believing that a strong founder can elevate a mediocre market more effectively than a mediocre founder in a strong market.
- 04
To succeed, founders should focus on demonstrating clear, quantifiable financial returns rather than soft, difficult-to-prove benefits, particularly in a crowded vendor landscape.
- 05
Healthcare deals consistently take longer than anticipated; founders must plan for extended sales cycles and ensure sufficient runway to navigate unpredictable delays.
- 06
Sam emphasizes the importance of structuring paid pilots with clear objectives and a defined path to a full contract, avoiding open-ended "experimental recurring revenue" that lacks commitment.
Read the full write-up on Substack.