CNBC recently ran an article entitled “As tech entrepreneurs move into health, they feel optimism at first…then fall into a ‘pit of despair” – the article highlights the dynamic of those seeing viable opportunities for new business start-ups within the healthcare market, only to lose heart once they begin to wade through the mire of complicated barriers to entry that exist such as the regulatory landscape, long sales cycles (at least compared to many other industry sectors), the entrenched politics of existing players within related markets – the list goes on, and most of it does not make for palatable digestion.
Ultimately, most who enter the healthcare market with enthusiasm and then eventually fall away do so because they do not understand the full complexities of the sector before throwing their hat into the ring.
Commenting on the article, Grace Century President and Director of Research Scott Wolf said “Tech entrepreneurs view health care as an exciting opportunity, until they’re trying to disrupt it.”
Wolf added “The good, and better news for us and our projects who have navigated many of the hurdles already, is that it more complicated than it looks. People can see the opportunity, synergy, and need, but the barrier to entry is high” he adds.