Common Mistakes That Cause Healthcare Startups to Fail


Medical startups drive major progress in the global health care industry. From Immersive pain therapies to 3D printed human tissue, these ventures allow us to live longer, healthier lives. With thousands of early-stage companies popping up in many cities, we’ve also seen many unsuccessful attempts.

Healthcare is a highly regulated field that is deeply rooted in science. Pivoting to developing software solutions is not easy for businesses. Startups will eventually face challenges, but there are some mistakes that should be avoided. Below are some common startup mistakes:

1. Lack of a proper go-to-market strategy

A go-to-market plan is essential for technology-driven health startups. Techies are poor in sales, so they can secure initial funding but do not sell enough and end up in debt.

These businesses may follow a simple build and launch process without paying attention to the importance of healthcare marketing. Experts advise proper customer identification before embarking on customer development, which involves tailoring your product to meet customer needs.

2. Inadequate knowledge of the healthcare system

Medical entrepreneurs may have a good idea of how to help patients, but they may be unaware that payment (at least the full payment) doesn’t usually come directly from the patient. Emphasis should be placed on insurance providers, large companies, and Medicare.

It is vital to learn how to navigate the system of physicians, pharmaceutical companies, and manufacturers. The disparity between venture capitalists and industry experts needs to be bridged, contributing to the entrepreneur’s total freedom as they focus on innovation.

3. Too much emphasis on pilot programs 

There is no guarantee that these programs will be commercially profitable, even though they are important for startups. It is appropriate for companies to devote the right amount of resources to these programs. One of the main ways to find out how much time, energy, and money to allocate is to talk to a potential customer about the terms of a post-pilot contract.

To help the pilot yield traction and income, ask the testers what important performance indicators they use when assessing whether the pilot becomes a contract. Also, check the data to see how many past pilots resulted in contracts.

4. Staying under the radar

Successful companies engage investors, stakeholders, and large companies. Staying off radar may make you miss a golden opportunity. Business acquisitions take place in groups because larger businesses are more competitive.

For example, if a rival purchases a certain technology, a significant player, such as a public company, may want to buy something similar. They monitor and establish connections with companies in their circles and move quickly when there is urgency.

5. Weak staff 

The common norm for most startups is to employ a technician, sales, and marketing guru or a product expert. It would be a miracle to get to the finish line without the right mix of staff. Every startup requires top-notch health professionals, researchers, and key opinion leaders as part of their team.


Failing startups pose a serious problem for the healthcare industry. Some play directly into these simple mistakes. It is also important to mention that having a scalable business model can boost profitability. Don’t just start a business to secure funding but build it to last and solve real-life problems.

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Medical Disclaimer

The information provided on this website is for general informational purposes only and should not be considered medical advice. The content on the website is not intended to be a substitute for professional medical diagnosis, treatment, or advice. Always seek the advice of your physician or other qualified health provider with any questions you may have regarding a medical condition.


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