Bold Brain Ventures, LP 506(c) Investor Portal - FAQs

"Follow the money, and you’ll see big bets on healthcare AI across the globe: 63% of healthcare executives worldwide already actively invest in AI technologies, and 74% say they are planning to do so."

— usblogs.pwc.com | "Enabling better healthcare with artificial intelligence", Brian Williams

AI Medical

What is Bold Brain Ventures?

Bold Brain Ventures is a collaborative investment fund that brings together radiologists, innovation, and capital to responsibly develop and promote the use of artificial intelligence in radiology.

Why was Bold Brain Ventures started?

AI has the potential to profoundly change radiology. Bold Brain Ventures wanted to create a mechanism that allows academic and non-academic radiologists to impact the evolution of radiology AI through their domain expertise, networking capabilities, and financial resources. Bold Brain Ventures intends to collectively harness these talents and resources, in collaboration with innovators and institutional investors, and inspire a renaissance in the field of radiology.

What is the size of the fund and the investment strategy?

Bold Brain Ventures is targeting a $25MM fund with a maximum of $100MM and a first close at $1MM. The fund’s strategy is to invest in approximately 20 early stage Radiology AI companies that hold significant promise in regard to growth and profitability. This should create diverse exposure to the sector. Some of the companies may be very successful and could result in significant returns for investors. Additionally, AI companies are seeking input from radiologists and Bold Brain Ventures can facilitate these connections. This strategy gives the fund an advantage over conventional approaches to investing, as well as differentiated deal flow. Participating in a radiologist-centric organization with a diversified portfolio of investments may be beneficial to investors.

Why focus on radiology in artificial intelligence?

The managing partners of Bold Brain Ventures have been working in radiology for over 20 years. As practicing radiologists, they understand the field. In addition, radiology is at the leading edge of artificial intelligence because the imaging information starts with digital data, which is a perfect substrate for AI algorithms.

What do you think the future of healthcare holds?

Currently, there is a physician shortage which is projected to continue in the future. Healthcare costs are increasing annually. The human population continues to grow, burdening an already overwhelmed healthcare system. At the same time, political and social changes to this crisis are slow to respond. Bold Brain Ventures believes that AI that is designed responsibly to increase efficiency, improve quality, and decrease costs will be instrumental in resolving the issues our system faces.

How will radiology benefit from artificial intelligence?

There are many tasks that can be automated that will improve efficiency and accuracy for radiologists. The opportunities are only limited by the human mind.

Will artificial intelligence replace radiologists?

AI has the potential to augment the skills and productivity of radiologists. As the technology matures, the concept of what a radiologist does will certainly evolve. Radiologists who take part in the AI development process will get a chance to influence how the landscape might unfold and preview what future skill sets will be needed to be relevant in radiology. Bold Brain Ventures wants to help build a community that can appropriately guide these changes so that they are effective for all.

Should radiologists fear AI?

Bold Brain Ventures believes that developing AI presents a tremendous opportunity for radiologists. The advancement of this technology will be extraordinary. Radiology has always evolved with the advent of new technologies, and radiologists who embraced these innovations pushed the reaches of medical imaging in ways that were previously unimaginable. By encouraging AI development, radiologists will continue to be medical pioneers, just as our predecessors were.

What challenges do you expect the AI industry to face?

A significant challenge for developing AI technology is the “last mile:” the integration of AI software into the working IT infrastructure of disparate healthcare systems, in a cost-efficient manner. These challenges are best addressed through a unifying effort that involves radiologists, innovators, capital, and healthcare administrators. Bold Brain Ventures is working towards creating a collaborative organization with funding to help accomplish this.

Artificial Intelligence relies on data. So where are companies going to get this data?

Data is critical to the development of AI. The access to structured, annotated data represents a bottleneck for many companies developing radiology AI. Larger academic institutions or healthcare systems may have accessible data, but it is specific regional data, which may impart a bias in machine learning algorithms. There is a need to obtain sufficiently large, less biased data sets to create representative pathologic and normal states. The industry realizes this and is working towards making the data more accessible to all. On July 20, 2018, the NIH released 10,600 CT scans into the public to be used for the development of AI. It is a clear statement, that as a society, we are determined to make this data available to help promote this technology. As the importance of AI becomes more apparent to society over time, Bold Brain Ventures believes that more collective effort by governments and academic institutions can help the industry grow.

Who are the key players in this industry?

Bold Brain Ventures does not believe that there is a dominant player in the field of radiology AI right now. The field is still in the earliest stage of development. Bold Brain Ventures’ intent is to create a collaborative ecosystem of radiologists, innovators, and capital to promote the development of radiology AI. In doing so, we want to be the “go to” fund for startups because we can offer them the professional feedback, funding, and a network of connections to realize their ambitions. By creating this ecosystem, Bold Brain Ventures can become a dominant player in the development of radiology AI.

What are you looking forward to the most in regard to radiology AI?

As radiologists, we have an opportunity to help lead a healthcare renaissance. That is very exciting!

How did the managing partners choose each other as business partners?

Tom and Robin completed their NYU radiology residencies together over 17 years ago and have since shared in many life and work experiences, including other business ventures. They enjoy working as a team, and they look forward to continuing to grow with Bold Brain Ventures.

Why do you feel that radiologists (physicians) should invest in Bold Brain Ventures?

It is their field of expertise. Radiologists are best suited to understand what needs to be developed and how the technology should impact the practice of medicine. Furthermore, as the field develops, there will be issues that arise as to when and how this technology should be deployed. There is no better group of professionals to undertake this responsibility.

What is an accredited investor?

The SEC mandates that investors be accredited for this type of Regulation D 506(c) offering. Most radiologists already qualify as accredited investors due to their income levels of over $200K as an individual or $300K combined with a spouse, or a net worth of over $1MM (either alone or with a spouse). Upon investing in the fund, radiologists and other high net-worth can easily provide proof of accreditation status with a brief note from their employer confirming that they meet a certain salary threshold. Upon registering for an Investor account on our portal (free of charge), you will be able to download a sample letter that you can use as a template. Alternative means of proof can also be provided if desired, such as bank statements.

Tell us about your investors.

Most of our investors will be radiologists since they have a vested interest in influencing how this technology will impact patient care, the practice of radiology, and their revenues. Radiologists typically qualify as accredited investors due to their incomes, which the investment model mandates. Bold Brain Ventures also believes the marketplace will support a significant demand for high net-worth individuals and entities to invest, who may also deem this to be a potentially lucrative opportunity.

How will Bold Brain Ventures choose which companies to fund?

Bold Brain Ventures will be investing in early stage, radiology-centric artificial intelligence companies that can demonstrate a vision towards improving patient care and a clear plan on how they intend to market and commercialize their product. There will be a stringent due diligence process to review prospective investments, which includes consultation with our fund advisors. Additionally, Bold Brain Ventures plans on co-investing with other seasoned funds that will be able to assist with assessing companies.

Why should an individual invest through Bold Brain Ventures, as opposed to on their own?

Investing involves sourcing a significant number of early stage companies, selecting a subset of those through a formal due diligence process, and deploying a significant amount of capital across a diversified portfolio. This process is better accomplished in the form of numerous experienced individuals working and investing together in one fund.

In addition to investing in this fund, how can radiologists get involved?

Bold Brain Ventures wants to allow investing radiologists the opportunity to collaborate with our selected early stage companies. Radiologists can consult with our invested companies on AI development to establish a desirable product/market fit. They can vet the accuracy of newly created algorithms. Radiologists can help early stage companies understand the complex work environments of hospitals and private practices. They can also act as a company’s liaison to hospital administrators and the larger radiology community. These are a few of the ways that we envision radiologists collaborating in our ecosystem, but we are open to ideas!