We will take bets that nearly 100 percent of those that fail, didn't adopt a User-centered Design philosophy and ignored Usability
About half of digital health startups will fail less than two years after their launch, according to a report by Accenture, MobiHealthNews reports.
For the report, Accenture analyzed 900 health IT startups (Pai, MobiHealthNews, 8/13).
Report Findings
According to the report, about 50% of the startups analyzed were in danger of failing within 20 months of launching, allowing larger companies to "mine" them for technology and talent (Dvorak, FierceHealthIT, 8/13).
The report found that such startups "on the brink of failure" raised almost $4 billion in funding between 2008 and 2013, MobiHealthNews reports.
Further, the report projected that digital health startups will raise an additional $2.5 billion in the next two years, with:
- Almost 30% of funding invested in infrastructure;
- 25% invested in engagement;
- 25% invested in treatment; and
- 21% invested in diagnosis.
Kaveh Safavi, managing director of Accenture's global health care business, said, "Rather than discard the investment that has been made in getting sputtering startups off the ground, it often makes sense for health care stakeholders to acquire them."
Doing so allows larger companies to "salvage" startups' "best people and technologies," Safavi said, adding, "Many digital startups that are dying or in danger of failure have developed solutions that can help traditional and non-traditional health care companies achieve their goals" (MobiHealthNews, 8/13).
Source: iHealthBeat, Friday, August 14, 2015
