Foley & Lardner LLP partners David Sanders and David Kantaros are highlighted in BioBuzz for their insights during a recent panel on the future of artificial intelligence in health care.
Moderating the panel, Sanders opened with a focus on the team dynamics of emerging companies, emphasizing that legal frameworks and business plans are only as strong as the people behind them. “You can draft the greatest documents in the world, but if the companies are not aligned on culture and mission, it’s going to fail,” he said. “Doesn’t matter how good the match looks on paper.”
Kantaros said investors share this sentiment – in an emerging company, talent and team cohesion are key. As the conversation turned to the challenges of scaling AI in health care, he noted that raising capital for an AI company involves far more than proving the effectiveness of a company’s technology. Companies must navigate extensive due diligence, including assessment of regulatory pathways and reimbursement strategies. Kantaros pointed to cliff-vesting as a way to keep standards high for business advisors. “They don’t get any equity right away,” he said. “They’ve got to stay involved for a little bit, so you have a chance to really feel them out.”
Sanders added a practical reminder that success in health care always comes back to the question, “Who’s going to pay for it? Because if the individuals can’t afford it, that means you’re going to private pay, you’re going to Medicare, you’re Medicaid, you’re getting coding.”
