As a deep tech fund, we come across a fair share of platform-tech startups. The promise of supposedly expandable market opportunities is auspicious for growth and return. Though oftentimes, many fall into execution traps, especially earlier on in the life cycle.
While some missteps may be reversible, others exhaust already limited resources and lead to a point of no return.
The sheer scale of the healthcare system is mesmerizing. In the US alone, $11,072 per capita spending (in 2019) and at around 320 million in population means that we’re looking at $3 trillion in annual spending.
And even though the US is the largest spender, spending per capita has been rising across the entire world, driving healthcare to make up a larger and larger share of total global GDP.
But, as experienced founders know, the sheer size of a market alone doesn’t matter that much. What matters is how attainable it is for your specific business and business model.
For founders in the healthcare sector, this means avoiding the number one faux pax; forgetting the “business” part of the healthcare system.