Monday, June 30, 2014

Notes on the emergence of digital health startups

Various administrative reforms are vastly changing the landscape of the country’s health care. While these new policies are intended to respond to the current challenges in the industry, they are also opening exciting opportunities for providers and recipients. The emergence of digital health startups as a viable business venture is another product of these changes. This renewed energy in health investing is a far cry from the relative caution firms were professing a few years before.
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Before, many venture capitalists were shying away from digital health startups due to the accompanying risks, but recently this perspective has been changing. According to this Rock Health report, since 2011, funding for health startups has been growing more than 200 percent. In 2013 alone, more than a billion dollars have been invested in these young digital health companies. The sector has been growing exponentially for the last five years.
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Understandably, there are still some reservations about funding for the health startup sector, but the above figures show that trust in young companies is growing. Investment firms are starting to see the potential of these startups, not just in developing new technological health breakthroughs, but also in creating new channels for delivering quality healthcare to the masses.  

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Jay Oyakawa is a GPG Ventures entrepreneur-in-residence, specializing in business strategy and development for the healthcare sector. For more stories on the business side of healthcare, visit this Google Plus page.

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