Study Up on These Dynamics for Health IT Startups

Health App

On the face of it, startups focused on health-related solutions are in a good space. During the first quarter, investors poured $858 million into health IT, according to Mercom Capital Group, including $198 million into mobile technologies. Despite the more than 40,000 health, fitness and medical apps already available, the global mobile health market is expected to reach $20.7 billion by 2018, says researcher MarketsandMarkets.

Still, the market is fraught with pitfalls, according to Beth Seidenberg, M.D., a general partner with investment firm Kleiner Perkins Caufield & Byers. Writing at Re/code, she warns of six “truths” creators of these technologies should keep in mind:

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In addition, developers should take into consideration the patchwork of policies related to medical licensure, privacy and security, as well as malpractice liability, warns Health Affairs.

As you evaluate potential employers, try to suss out whether their product and approach have taken account of these dynamics. Healthcare’s hot, no doubt about it, but that doesn’t guarantee success.

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