When founders talk about building health tech companies, fundraising is usually at the top of their priority list. Investor decks, pitch competitions, and funding rounds dominate the conversation. But at Qatalyst Health, we took a different approach because we're fully bootstrapped, and it's been one of our best strategic decisions.
The Nursing Home Industry Runs on Relationships
The decision to bootstrap wasn't about ideology. It was about understanding our specific market. If we were doing probably any other part of healthcare, we probably would have fundraised. But the nursing home industry specifically is very word-of-mouth based. You don't really need a massive sales team, you just need a connected one.
This industry insight shaped our entire growth strategy. Unlike hospitals or consumer health apps that require massive marketing budgets, nursing homes operate through tight-knit networks where administrators share information constantly. For example, administrators in Charleston know each other and are in a group chat so when one facility adopts a new solution and sees results, word travels quickly.
We discovered that my co-founder had connections in the industry he didn't even realize, like people who were in his hallways when he was a student at BYU back in his day are now CFOs of regional chains. These unexpected networks became our distribution channels, eliminating the need for the kind of rapid scaling that typically requires venture funding.
Our Team Already Had the Right Connections
The composition of our founding team played a crucial role in our funding decision. With my background in finance and my co-founder's extensive network in the industry, we already had access to the doors we needed opened. When we evaluated what venture capital would actually add beyond money, we realized that it wouldn't do much to help.
This industry-specific advantage made bootstrapping not just possible, but preferable. The nursing home sector operates through relationships that span the entire country, not just local regions. As I discovered, it seems to be country wide — when an administrator moves from South Carolina to Pennsylvania, those connections follow them, creating natural growth opportunities without the need for massive capital investment.
Grants Provided Capital Without Dilution
Bootstrapping doesn't mean going without any outside support. We received a grant from SCRA (South Carolina Research Authority) that provided crucial early capital without diluting ownership or creating pressure for unrealistic growth timelines. The Boyd Innovation Center, where we've spent countless hours developing our product, donated free office space for 12 months after we won the Proving Ground pitch competition at USC in 2024.
Operating lean forced us to be more thoughtful about every decision. Rather than throwing money at problems, we had to solve them creatively. This approach built discipline into our company culture from day one. When you're not sitting on millions in venture funding, you learn to maximize the impact of every dollar and every hour.
Customer Feedback Mattered More Than Fast Growth
Perhaps the biggest advantage of bootstrapping has been the freedom to grow at a pace that makes sense for our market. Venture-backed companies often feel pressure to show hockey-stick growth curves regardless of whether that pace is healthy for their specific industry. We've been able to focus on building genuine relationships and developing a product that truly solves our customers' problems.
This approach has allowed us to be patient with our first customers, even not charging them initially because what they were giving us in feedback was far more valuable than what we could ever provide them. That long-term perspective would be difficult to maintain with investors expecting quick returns.
The result? We’re now signing facilities from some of the largest nursing home chains in the country. Our growth isn't fueled by massive ad spend or an army of salespeople, but by delivering real value and letting satisfied customers become our advocates.
Not Every Health Tech Company Should Follow Our Path
Bootstrapping isn't right for every health tech startup. If you're developing a new medical device that requires FDA approval, building consumer health technology that needs massive marketing, or competing directly with established players who have deep pockets, venture funding might be essential.
But if your solution serves a niche within healthcare where relationships matter more than rapid scaling, consider whether bootstrapping might give you strategic advantages. Ask yourself:
How does my specific segment of healthcare adopt new technology?
Can I reach my initial customers through networks rather than marketing?
Do I have the personal connections or credibility to open doors without a big brand name behind me?
Is my solution able to generate revenue relatively quickly, or will it require years of development before seeing returns?
Your answers to these questions should guide your funding approach far more than what's trendy in startup circles or what other health tech companies are doing.
Mission Drives Our Growth, Not Investors
Perhaps the most meaningful aspect of bootstrapping has been the ability to focus on impact first. We're building Qatalyst Health to solve a real problem in nursing homes—helping nurses spend less time on paperwork and more time with vulnerable patients while improving facility finances.
This mission drives every decision we make. Without external pressure to pivot toward more lucrative markets or faster growth opportunities, we can stay focused on the patients and caregivers we set out to help.
That's not to say we don't have ambitions to grow. We're expanding rapidly and bringing our solution to more facilities every month. But we're doing it in a way that aligns with our north star goals.
Andrew Nye, a recent UofSC graduate, started his entrepreneurial path in college by co-founding a hedge fund while also running his own consulting business, where he handled financial modeling for several equity raises, convertible note issuances, and buyouts. One project introduced him to the challenges of healthcare reimbursement, which inspired him to start Qatalyst Health and build better software for the long-term care industry.
