Health Care Startups Are Booming. We Look At Why
The last ten years have been a vital and exciting time for startups everywhere. Following the dot com boom, everyone with an idea and an internet connection became an entrepreneur. It took a long time, however, for this revolution to hit the world of health care. Now, more startups than ever before are targeting the health market. In the last four years, venture funding for health care startups has increased 200%. In this article, we’ll look at how and why this has happened.
Ageing Population – Quite simply, more and more people require medical attention. Thanks to developments in medicine and health care, people are living much longer. This is wonderful, but it also puts a strain on the existing healthcare systems. Private companies and startups are being welcomed in order to relieve some of the strain. More importantly, it has provided a much wider need for assistance.
Health Reforms – Since President Obama’s inauguration, he has sought to change the health care system. The revolutionary Obamacare bill, or ‘Affordable Care Act’ altered the healthcare landscape. It improved the access to healthcare for millions of Americans. The affordability, quality and availability of care increased drastically. With that, comes an increased number of people seeking medical attention. Again, the startups were welcomed to help ease the numbers.
Technology – Technology is entirely changing the way that healthcare works. Doctors are updating notes and diagnostics on iPads. We are using 3D printers to create replacements valves and organs. Apps and services like telehealth are giving people access to healthcare from home or the office. The healthcare world is embracing technology and startups are capitalising on this.
Efficiency – The old structures of healthcare are large, dense and bureaucratic. They are giant, corporate systems that have grown to slow down efficiency. This has happened in the UK with a bloated NHS. It’s the same story in the US with the sheer bureaucracy involved with health insurance. If there’s one thing that startups do well, it’s efficiency. They are set up quickly and their small teams make shrift work. These startups are coming in and streamlining some vital services. It is helping patients and doctors alike and is helping to save lives.
Golden age for startups – The healthcare industry isn’t alone when it comes to startup growth. Venture funding is growing wildly in many industry sectors. The tech sector is still the single biggest growing area for startups. Most of the biggest IPOs to hit the stock market this year are tech startups. The startup bubble is expanding, but shows no sign of bursting just yet. Healthcare is just one industry that is benefiting from this boom. The benefits are obvious, with better survival rates and quicker diagnoses.
Healthcare startups are altering the medical landscape. Rooted in new, efficient technology, they are making the lives of doctors and nurses easier. They are leading to faster diagnoses, increased patient care and overall well being. The healthcare system is welcoming this change and it looks set to continue well into the future.