Key Mistakes Hindering Digital Health Startups
Hundreds of digital health startups embarked on a quest for new customers and financing at the recent ViVE conference in Los Angeles. However, industry leaders have highlighted critical mistakes that these startups are making, significantly lowering their chances of raising capital or securing partnerships with health systems.
Rebecca Kaul from Northwell Health emphasized that one common error is overselling their product instead of focusing on solving the health system’s problem. According to Kaul, it is crucial for these startups to engage in mutual listening and learning rather than simply pushing for a sale.
Michael Kalishman of Sentara Health brought attention to another prevalent mistake: weak plans for IT integration. Many digital health startups fail to comprehend the complexity of integrating their product into hospital IT systems. This lack of understanding, coupled with a shortage of IT experts in their teams, leads to frustrating and challenging integration processes.
While the digital health market is expanding rapidly, Michelle Stansbury from Houston Methodist warns that many startups struggle to stand out from their competitors. This issue is particularly evident in crowded areas such as clinical documentation and mental health apps. Stansbury stresses that startups must articulate what sets them apart.
Alarming cybersecurity oversights are also commonly observed among startups. The vulnerability of the healthcare industry to cyberattacks calls for startups to address cybersecurity in their products. Failure to do so diminishes their appeal as partners for health systems.
Lynne Chou O’Keefe of Define Ventures notices that many startups fail to adequately address the clinical models tied to their products. The clinical value of a digital health product plays an integral role in its success and adoption.
Lastly, Cathy Gao from Sapphire Ventures expresses surprise at the number of startups that cannot effectively showcase their utilization and engagement metrics. Demonstrating how clinicians are utilizing their products is crucial for securing renewals from health systems.
Addressing these six common mistakes is crucial for digital health startups to increase their chances of securing funding and forming partnerships with health systems. By focusing on mutual engagement, IT integration, differentiation from competitors, cybersecurity, clinical value, and utilization metrics, startups can enhance their standing in the rapidly evolving digital health landscape.
Analyst comment
Negative news. The market for digital health startups may be affected negatively as industry leaders identify critical mistakes that hinder their chances of securing funding and partnerships. Startups need to address overselling, weak IT integration, differentiation from competitors, cybersecurity, clinical value, and utilization metrics to increase their chances of success.
