In the complex world of digital health, raising capital isn’t just about having a brilliant idea or an elegant pitch deck. It’s about timing, fit, readiness — and people. To better understand what makes a digital health startup fundable, we sat down with Diego Braguglia, Managing Partner at VI Partners and long-time investor in life sciences and digital health. His insights offer pragmatic guidance for startup founders navigating the fundraising journey. 

Does Every Digital Health Startup Need to Talk to VCs?

Not necessarily. “It depends a lot on the kind of business you’re building,” Diego explains. “Venture capital is appropriate if you’re creating something with significant growth potential and an exit path — not just a steady revenue stream.” 

For some, non-dilutive grants or business angels might be more suitable in the early stages. Others bootstrap their way to traction. “There’s no ‘typical’ journey,” he says. “Your funding strategy should match your goals, stage, and the kind of support you need — not just the amount of money.” 

When to Start Fundraising?

Startups should anticipate a 6 to –9 month timeline to raise money from a VC. And when they do reach out, “your house must be in order,” says Diego. That means: 

• Legally sound structure and documentation 
• Clean and compliant financials (no need for fancy accounting, but follow the basics) 
• Shareholders aligned and no internal inconsistencies 
• A well-articulated business plan and operational strategy 

Most importantly, start building relationships early. “You don’t go to a VC and say, we need 5 million in 3 weeks. That’s likely an automatic no.” 

Smart Money, Not Just Money

“As much as VCs do due diligence on you, you need to do the same,” advises Diego. Startups should seek out investors who bring value beyond capital: connections, credibility, sector expertise. That means: 

• Talking to other founders who have worked with them. Asking about their experience. 
• Understanding what kind of companies they invest in (check their website, portfolio, public info). “Don’t waste time pitching VCs who don’t do healthcare — or who just invested in a competitor.”  
• Being realistic about their stage and fund lifecycle (e.g., if a fund was raised in 2020 and it’s now 2025, they may have exhausted their investment period (normally 4 to 5 years) and no longer be investing in new ventures) 

What Makes a Digital Health Startup Stand Out?

Asked what makes a startup shine in first meetings, Diego answers simply: “The people.” He looks for founders who are authentic, humble, and deeply knowledgeable in their field. Also key: 

• Clear vision of the future: where do you want to be in 2-3 years? 
• Understanding your exit: who might your buyer be? 
• Preparedness: “I often ask: what would you do if you had unlimited funds? That question reveals a lot.” 
• Open to dialogue and feedback 

“Have a little romance, but be highly opinionated about what you’re building,” he adds with a smile. 

“Investment is a people business. Once we invest, we’re in the same boat as you — so make sure you trust who’s rowing beside you.”
Diego Braguglia, Managing Partners, VI Partners

Biggest Reasons for Rejection

Why do investors say no? It might be the wrong stage, an overcrowded space, a lack of clear differentiation, or simply no fit with the fund’s strategy. “Sometimes it’s not about you. It’s about us already being exposed to that space or being past our investment window.” 

Also, beware of generic rejections. Ask follow-up questions and try to get real feedback. And remember, rejections are often not the end. “We’ve said no to startups and then invested in them later.” 

The Swiss VC Scene: Cautious but Active

Despite market noise, Diego is optimistic. “Yes, people are still investing — including us,” he affirms. VI Partners is currently raising a new fund with a significant focus on digital health. But the bar is high: “You need to articulate your killer indication — the specific pain point you solve, and for whom.” 

Importantly, startups need to anticipate their potential acquirers. The strategic logic buyer for digital health ventures is often unclear. In biotech, exits are easier to predict. In digital health, it’s more complicated. That’s why startups should think early about their potential exit route. Is it a pharma company? A digital health consolidator? A non-traditional buyer entering healthcare? “If you can’t answer that, your story will be harder to sell.” 

Should Swiss Startups Go Global?

“Absolutely,” Diego says. “Switzerland has money — but startups should look globally, for both markets and investors.” He encourages founders to explore opportunities in the U.S., broader EU, Asia, and beyond — but also to understand the local culture. 

“If you’re raising in China, work with someone from China. Cultural fluency is as important as business fluency.” 

Final Words of Advice

Be authentic. Be prepared. Be realistic. 

“Have a solid, concrete plan — and know what problem you’re solving. If your pitch is the tenth version of something we’ve already seen, you need to show what makes you stand out.” And stick to high scientific standards. “AlsoEven in digital health, the quality of the science matters.”  

Finally don’t underestimate the human element. “We invest in people. Chemistry matters. You want someone who will challenge you, but also row in the same direction.”