Lukas Saari, Co-Founder & CEO of Tandem Health: BREAKING: Tandem Health raised $100M Series B

You're betting very big on Europe.

Europe is where you want to focus.

It's also interesting, one of the most European cap tables I think I've seen.

Was that intentional? Tell me a bit about the focus on

Europe.

We've been very intentional about focusing on Europe and also structuring our cap table along those lines as a result of it.

And for me, firstly, I just believe that European clinicians also deserve access to the best tools and tools that are built here and not built in the U.S. and then retrofitted for European setting that don't really work as well.

And then also for looking at our space, I very much believe that Europe is more lucrative than the U.S., And it's firstly due to the competition in the U.S. like U.S. is more mature.

It's more of a red ocean and so on.

So it's a very different environment there.

But secondly, when you're looking at the fragmentation and here we choose to view the complexities and the fragmentation of Europe as a strength and a moat rather than something that we try to shy away from.

And the fact that it's so fragmented, I mean, it means when you get started that it's more difficult because there's so many different systems to integrate with and so on.

But it also means that in the US, you have two systems, Epic and Cerner, on the medical record system side that dominate and have 70% of the market.

So you become incredibly dependent on these.

And they have thousands of engineers, they have their own AI agendas, and they have a lot of power for potentially locking you out.

Europe, even the top 15 medical record system vendors comprise of less than 70% of the market.

And these vendors are typically these like Frankenstein's monsters after acquisition journeys over the years that have dozens of systems beneath them.

So that means that in Europe, the system landscape is so small, essentially, that they are like subscale for developing these types of functionalities in-house and then are rather wanting to partner with someone like us for how they can bring this to their customers quicker.

So this also means that we have a much better environment on just incumbent the system landscape side for the mid to long term.

Are there American companies who are trying to expand into Europe and compete with you?

So I've been surprised by the fact that there's literally no, none of our US competitors have even tried to go into Europe.

There is one company called Open Evidence that is like a sort of decacorn type of company now that does like chat GPT, clinical decision support for clinicians.

they expanded into Europe, but actually completely shuts down their operations in Europe a few months ago.

So if you go onto their website in Europe, you just get a not available in Europe due to regulations type of page.

So this being because they didn't adhere to the regulations and certifications required in Europe.