Common myths derail healthcare technology startups and keep them from bringing their innovative solutions to life. But here’s the reality.
The dictionary defines a myth as “a widely held but false belief or idea.” In the world of healthcare technology startups, myths abound.
But for every enchanting success story, the reality is that hundreds of other startups fail to make it through year one. In my role with HealthTec Advisors, I have the unique opportunity to work with some of the most successful healthcare technology startup and early-stage founders. I help them see beyond some of the more common myths that derail startups and assist them in bringing their innovative visions to the right healthcare stakeholders.
Myth #1: Startups That Think Big Are Ready to Build Big
The go-big-or-go-home mentality that’s pervasive in tech startup culture practically dares founders to “think big” right from the start. To be fair, Healthcare places significant value on rapid development and rewards speed to market, but that can often lead to poor decisions early on in the name of expedience.
Security and reliability are the most common infrastructure gaps startups fail to grasp initially, and they can quickly become significant issues. Founders need to understand that enterprises value stability and security as much as they value new ideas. Meeting the level of trust or compliance that larger enterprises require is critical. It’s a reality that can come back to haunt you if you’re not prepared.
Myth #2: Scaling is the Same as Being Enterprise-ready
Startups often mistake scaling for being enterprise-ready because they think simply having a product that scales means they’re prepared to work with large enterprises. However, they fail to grasp the security, compliance, and reliability requirements that go well beyond just being able to support more users.
Startups excel when it comes to building innovative solutions, and most are, or quickly become, good at moving quickly to develop products. The challenge many face is translating that speed and innovation into something enterprises can trust and rely on.
Myth #3: Build the Right Solution, and the Customers Will Follow
Many fail because of misaligned product market fit. It is crucial for startups to utilize all available data to truly understand both how and, more importantly, why customers respond to their products.
Customer data is key to helping startups create solutions that truly resonate in the market. By leveraging years of customer data, we can uncover pain points, anticipate needs, and deliver personalized experiences that build loyalty. Ultimately, it is this level of customer-driven insight that helps open up startups’ sales pipelines and carry them to the next stage of their business.
Myth #4: Go-to-market Strategies Are Intuitive for Good Startups
Truly innovative products regularly fail because they are ill-prepared for the hurdles of selling to large enterprises.
The reality is that many founders aren’t well-versed in creating effective GTM strategies. Some founders come from large companies with well-established brands and reputations among enterprise customers. Others come to the market with backgrounds in engineering and research and may lack formal GTM training or experience. Either way, bringing a new company with new solutions to market is a different animal, and that is why it is important to find partners who can bring these skills and experience to the table.
Founders should lean on their partners to help them enhance brand credibility, establish strategic customer relationships, and create a GTM strategy that goes beyond innovation and focuses on creating products that enterprises can trust.
Building Beyond the Myths
Innovation alone won’t capture healthcare systems interest. Enterprises care deeply about things like security, reliability, and compliance, and it is up to you to prove that your solution can withstand real-world demands.
Healthcare systems provide predictable revenue streams, validate product-market fit, and push startups to meet the highest standards for scalability and security. By aligning with enterprise needs, startups can accelerate their growth and create a strong foundation from which to build.
