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August 28, 2011 06:30 pm GMT
Healthtech is an ever-growing sector, but from the $1 billion pool VCs poured into startups over the last year, health companies only received about 3 percent of that total. Not many healthtech startups have been able to secure those big venture rounds; however, last week, I highlighted one healthtech company that seems to be doing it right: Zocdoc, which raised a $50 million round from DST earlier this month, and offered a few takeaways for startups looking to learn from Zocdoc's experience. (Check out the post here. As the aforementioned venture numbers from Rip's post show, many startups really haven't demonstrated the same wisdom Zocdoc has shown, which has led to an increasing number of healthtech failures over the last few years. One recent study in particular highlights this phenomena. After interviewing 110 digital health entrepreneurs, RockHealth recently released the findings of a study demonstrating the disconnect between the companies that are actually getting funding and the many that have come up empty. This disconnect sheds light onto why so many healthtech companies have failed to make an impact, or have had to undergo significant pivots in order to survive. Herein you'll find some of the top causes of healthtech startup failure.
Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/XA8lowyYbz0/
HealthTech FAIL: Lessons For Entrepreneurs From Health Startups Gone Awry
Healthtech is an ever-growing sector, but from the $1 billion pool VCs poured into startups over the last year, health companies only received about 3 percent of that total. Not many healthtech startups have been able to secure those big venture rounds; however, last week, I highlighted one healthtech company that seems to be doing it right: Zocdoc, which raised a $50 million round from DST earlier this month, and offered a few takeaways for startups looking to learn from Zocdoc's experience. (Check out the post here. As the aforementioned venture numbers from Rip's post show, many startups really haven't demonstrated the same wisdom Zocdoc has shown, which has led to an increasing number of healthtech failures over the last few years. One recent study in particular highlights this phenomena. After interviewing 110 digital health entrepreneurs, RockHealth recently released the findings of a study demonstrating the disconnect between the companies that are actually getting funding and the many that have come up empty. This disconnect sheds light onto why so many healthtech companies have failed to make an impact, or have had to undergo significant pivots in order to survive. Herein you'll find some of the top causes of healthtech startup failure.Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/XA8lowyYbz0/
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