Technological advancements in healthcare have revolutionized healthcare systems, and MedTech startups have maintained an unwavering commitment to quality. The value of MedTech startup companies is expected to surpass 47$ billion by 2027. It’s a rapidly growing field and founders in this area should thoroughly consider the challenges before building a Medtech startup.
Doctors and patients are increasingly adopting medical technology in their lives. The use of health gadgets like wearables, use of artificial intelligence and robotics in surgery and medicine has exponentially risen over the last decade. Starting a medical technology company offers a decent investment return and scalability but faces challenges and tribulations in the early phase.
This article will guide you through the challenges of building a MedTech startup, the do’s and don’ts of healthcare, and essential steps to get your business off the ground.
Challenges of MedTech startups
- The healthcare industry is highly competitive. The governments and their regulatory bodies, several government and private established organizations hinder the growth of new startups. Moreover, the recent pandemic has enormously increased the use of telemedicine and telehealth services.
- Alongside the considerable potential that the technology holds, healthcare systems need to be faster to adopt it because of its bureaucratic and restrictive nature. The industry’s proverbial ‘old guard’ hampers the advancement of technology in the healthcare systems.
- Building a MedTech startup requires following stringent rules and regulations of the industry to survive and thrive. Even slight negligence by a MedTech startup company can jeopardize human lives.
- Nevertheless, starting a medical technology company affords many opportunities as public health needs still need to be met, and new solutions are required to enhance healthcare systems.
- Lack of feedback is another common cause of the failure of startups. Feedback has a pivotal role when it comes to understanding the pain point of customers. It helps startups create or improve their unique solution.
MedTech startup ideas
Suppose you are planning to set up a business in the healthcare industry. In that case, the following is a list of some of the most valuable startup categories:
- Mental Health Startups: These startups provide mental health services. Its scope ranges from delivering psychological therapy sessions online to mood tracking and self-care journaling apps.
- Patient care: MedTech Startup companies that provide personalized healthcare to individuals, for example, provision of physician or family doctor services on a subscription basis.
- Fitness startups: Starting a medical technology company that provides fitness equipment and workout plans.
- Nutrition startups: Suggesting personalized diet plans.
- Genomics: Isolating, storing individual’s DNA, tracing ancestry, and gene therapy services.
- Internet of (Medical) Things: Building a MedTech startup that connects patients and caregivers.
- Data and health record services.
- Medical information providing services.
Vital considerations before starting
- Follow your interest: Prefer your passion over profitability.
- Make sure your product is evidence-based and provides a unique solution to public health problems.
- Your healthcare solution should be compatible with other data solutions or devices already used by healthcare professionals.
- Focus on adding value to the industry by innovating a service that adds value to the entire healthcare system rather than creating another typical MedTech startup company in the pipeline.
Step-by-Step guide to building a MedTech startup
Starting a medical technology company can be challenging. Make sure to follow these steps to maximize your odds of success.
Market Research and Competitor Analysis
Analyze market trends, recognize public problems and pain points, and inspect ‘gaps’ or opportunities. Observe other MedTech startups and their solutions and find your unique niche.
Contract Medical Expert Panel and Legal Advisors
You need experts in every department to push your startup forward. Likewise, legal advisors must be at your disposal to comply with legal regulations. If you don’t have experts in the beginning phase you can apply to medical training programs to benefit from their expertise and mentorship.
Draft a Business Plan Framework
Your team needs to develop an outline for your startup endeavor. Plan and finalize your facility, services, and products before starting a medical technology company.
Fundraising for Building a MedTech Startup
To kickstart your MedTech startup company, you need to raise funds. Reach out to venture capitalists and angel investors, build strong connections with them, and pitch them to invest in your business. Be clear and transparent. Show them your unique insight and offer them equity. Once they see traction in your business, they will be ready to invest.
The other way to get not only financial but also technical support is participating in venture building programs like Medtech Pioneers.
Develop a Budget Strategy
Once you have funds ready to invest, plan how much and where to invest. Create budget plans for your marketing, advertising, and product development strategies.
Launch MVP
Launch your minimum viable product and receive feedback. See if your product improves your product or services accordingly.
Develop a Monetization Strategy
Once your product is live, it’s time to craft a growth strategy. If your business is a hyper-growth startup, your primary focus should be getting as many users as possible. You can charge for your product on a subscription basis or pay per use.
Why do MedTech Startups fail? Common Pitfalls to Avoid
The survival rate of medical startups is only 56.9%. Most MedTech startups shut down after four years. The following are the common reasons why most MedTech startups fail.
- Non-observance of industry standards is one of the primary reasons that lead to the cessation of a startup. Young startups must comply with the industry’s stringent rules and regulations. Building a MedTech startup needs to observe the laws issued by the state.
- Lack of proper communication with the customers and funding agencies is another mistake many entrepreneurs make before starting a medical technology company. Effective communication is crucial to foster trust among customers and investors.
- Wrong marketing strategies are another reason for the failure of startups.
- Partnering up with corrupt people that do not have the same ambitions as you. Investors who pull out their funding at the growing stage of the company are one of the primary reasons for the failures of MedTech startup companies.
Conclusion
A MedTech startup is an incredibly competitive and risky field, with the potential to yield high rewards and growth. It requires a significant amount of planning and preparation to ensure that the venture is successful. Companies need to have a solid business plan that takes into account all the rules and regulations, as well as market research to identify the right strategies for success.
Additionally, startups must have the resources to take advantage of scaling opportunities, as well as the financial means to support the venture.