It may seem counterintuitive, but one of the reasons some entrepreneurs are drawn to healthcare are the regulations. No industry outside of defense is heavily scrutinized, and for good reason: When you deal with people additional caution is essential.
Rules, requirements and regulatory complexity may be barriers to entry into the world of digital health startups, but they also present opportunities.
Founders often find that their launch is just proof of concept, or they can justify spending hundreds of thousands of dollars a month on advertising to attract new users.
When venture funding was scarce, there was a compelling need to prioritize speed and maximize the runway provided by smaller seed rounds. The environment, however, has changed – burgeoning investor interest and availability available
Speed and efficiency may be essential for startups, but regulatory compliance need not be bottleneck or a financial drain.
If they do not have the benefit of legal fees – they are the best case scenario. In the worst case, a deal can blow up.
It is understandable how these concerns can be overlooked at the beginning. There is something that does not already exist.
But when you’re building a digital health company, the ultimate end user is a person in need of medical care. The stakes are higher than creating the next puzzle game or food delivery app.