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Rock+Health and Startup Health are awesome launch pads for health startups. I'm happy that the health-focused accelerators are gaining more attention (in the i
by pxlpshr 13y ago
Rock+Health and Startup Health are awesome launch pads for health startups. I'm happy that the health-focused accelerators are gaining more attention (in the industry).
A big challenge for most accelerators (ycom / techstars / et al) is that the 3 month cycle is not usually long enough for entrepreneurs (new or experienced) to wrap their head around the depths of healthcare, muchness negotiate a sales contract. If you already have experience in this industry, awesome, but if you don't – prepare to spend 3-6 months just navigating the complexities. "Who pays?" is a very interesting question that you should consider in detail, and the answer is usually not the Doctor and almost never the Patient.[1]
In any event, we need more talented entrepreneurs working on some of these issues and not fast-following to be the next cool photo/chat app. I recognize a lot of young technologists don't understand why healthcare sucks as a consumer because your body is in great shape, but spend a few weeks in a hospital and you'll find plenty of opportunities if you have the fortitude to deal with the mountain of bs.
Disclaimer: I'm a former consumer / financial guy turned health tech entrepreneur, and participated in TechStars last year.
[1] The consumerism of healthcare is an interesting topic. I do believe that retail clinics will become as popular as a Starbucks and a shift to a consumer-pays model will likely compliment our new healthcare system, but I don't see it happening for the 60-70% of the population suffering from serious chronic diseases. They just can't afford it.
- wmkn 13y ago> In any event, we need more talented entrepreneurs working on some of these issues and not fast-following to be the next cool photo/chat app...prepare to spend 3-6 months just navigating the complexities. Totally agree. The healthcare domain is incredibly difficult, especially for small companies that aim their product at medical professionals (speaking from experience here). - As you said, who pays? There are a lot of different stakeholders in the purchase of a medical device: medical professionals, insurance companies, IT department, hospital risk management, etc. You need to consider them all. - The healthcare market is incredibly conservative. If you have a fantastic product, but it requires changes to established processes, you need a really good story before someone will even consider purchasing it. - The healthcare market is used to having products actively pushed to them. Standard marketing (e.g. nice website, advertising, etc) will not bring you customers. You have to keep in mind that medical professionals are used to "study" trips to locations with a nice beach. - Medical devices (hardware, but also software) require CE certification, FDA approval or other forms of certification. Which can be expensive and time consuming.
- rficcaglia 13y agoPlan for 3-6 months just for contract approval, AFTER a yes. Also be very careful about IP when collaborating. Budget lots for lawyers, especially when selling to academic centers.