Target Information

M7 Health, co-founded by Ilana Springer Borkenstein and Eric Gruskin, is dedicated to revolutionizing the nursing workforce management system. The company aims to empower health systems by providing the necessary data and tools to align with each nurse's work-life preferences and career aspirations. Ilana, a Registered Nurse by training, brings firsthand experience from her time as a nurse on a pivotal COVID-19 unit, driving her commitment to address the challenges faced by healthcare professionals today.

By focusing on nurse scheduling and creating a more efficient and transparent working environment, M7 Health addresses a significant need within the healthcare industry. The firm's fundamental goal is to transform the traditional administrative aspects of nursing into a dynamic framework that promotes employee satisfaction and retention.

Industry Overview

In recent years, the nursing profession has reached a critical juncture, with alarming rates of nurse turnover occurring across hospitals. The average annual turnover for inpatient hospital nurses now stands at 27%, with a significant portion of the workforce expressing intentions to leave their positions. Contributing factors include burnout from the COVID-19 pandemic and an impending wave of retirements among a considerable number of Registered Nurses (RNs) who are over the age of 50.

This trend poses substantial risks to the financial stability of hospitals and can adversely affect patient care outcomes. The diminishing workforce is exerting further pressure on the remaining nursing staff, leading to increased burnout and exacerbating the already challenging conditions within healthcare facilities. As these disruptions accumulate, the urgency to implement sustainable solutions for nurse retention becomes increasingly clear.

Simultaneously, healthcare organizations are lagging behind other industries in adopting modern work models. The traditional, rigid work arrangements prevalent in nursing—such as 12-hour shifts with minimal flexibility—pose significant obstacles to recruitment and retention. In contrast, industries have begun exploring flexible working arrangements, including remote positions and alternatives to standard work weeks, amplifying the need for hospitals to innovate their staffing processes.

Historically, hospitals have supplemented their nursing staff with temporary workers and agency nurses to manage fluctuating patient care needs. However, emerging healthcare staffing marketplace platforms are gaining traction, demonstrating an increasing influx of venture capital. These startups, collectively raising over $1 billion since the pandemic, address acute staffing challenges but highlight the necessity for long-term strategies aimed at redesigning nursing roles to enhance job satisfaction.

Rationale Behind the Deal

The $1.75 million pre-seed round led by 25m Health reflects a strategic investment in M7 Health's mission to innovate the nursing profession. Given the growing challenges related to nurse retention and satisfaction, M7 Health's approach to reengineering nurse scheduling represents a timely solution aimed at increasing efficiency and improving the overall work experience for nurses.

This investment positions 25m Health at the forefront of a potential transformation within the healthcare system, targeting a sustainable solution that alleviates the pressing challenges faced by hospitals while enriching the lives of the nursing workforce.

Investor Information

25m Health is a forward-thinking investment firm committed to identifying and supporting transformative healthcare solutions. By backing innovative startups like M7 Health, 25m Health emphasizes the importance of addressing critical issues within the healthcare landscape. Their focus on empowering companies that reimagine traditional processes exemplifies their understanding of the diverse needs within the healthcare sector.

In pursuing investments in healthcare technology-driven solutions, 25m Health aims to foster advancements that ultimately lead to improved patient outcomes, operational efficiency, and enhanced workforce satisfaction. Their leadership role in M7 Health underscores their commitment to facilitating innovation in a space with significant growth potential.

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The investment in M7 Health is poised to be a promising venture. By harnessing technology to improve nurse scheduling and retention, M7 Health addresses an urgent issue within the healthcare sector, potentially leading to enhanced job satisfaction among nurses and improved patient care outcomes. With the nursing profession facing unprecedented challenges, their innovative solutions position them to meet these demands effectively.

Additionally, the market landscape is increasingly favorable for companies innovating in this space. As healthcare continues to evolve, organizations that prioritize flexible working arrangements and employee well-being stand to gain a significant competitive advantage. M7 Health is strategically aligned to capitalize on this shift, which could lead to long-term sustainability and growth in the healthcare staffing sector.

In conclusion, investing in M7 Health is not only timely but also strategically sound, considering the critical workforce challenges facing the healthcare industry. Their commitment to improving the nursing experience addresses immediate concerns while laying the groundwork for a more resilient future in healthcare.

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