It could seem Paradoxically, one of the reasons some entrepreneurs are drawn to healthcare is because of regulations. No industry other than defense is scrutinized as much, and for good reason: extra care is needed when you’re dealing with people.
Rules, requirements, and regulatory complexity can be barriers to entry into the world of digital health startups, but they also offer opportunities.
Founders often find creative ways to come to terms with an additional omission, such as saying that their launch is just a proof of concept or that they can’t justify spending hundreds of thousands of dollars a month in advertising to acquire new users.
When venture funding was scarce, there was an urgent need to prioritize speed and maximize the runway provided by small seed rounds. However, the environment has changed – growing investor interest and ample capital available means there is an even greater need to set aside a significant budget for compliance.
Speed and efficiency can be essential for startups, but compliance shouldn’t be a bottleneck or a financial drain.
If compliance isn’t taken into account from the start, founders will sooner or later find themselves in a situation where they have to struggle to fix things behind the scenes, spending huge sums of money in legal fees – and that’s the best-case scenario. In the worst case, the deal may fall through.
It is understandable how these concerns can be overlooked in the beginning. There’s a certain amount of creativity and dissatisfaction with the status quo that founders need to contemplate building something that doesn’t exist yet.
But when you build a digital healthcare company, the end user is the person in need of healthcare. The stakes are higher than creating the next puzzle game or food delivery app.
Credit: techcrunch.com /