Some entrepreneurs are drawn to healthcare because of the regulations. When dealing with people, additional caution is essential, and no industry is more scrutinized than the defense industry.
Rules, requirements and regulatory complexity can be barriers to entry in the world of digital health startups.
It's not uncommon for founders to reconcile the additional oversight by saying that their launch is merely a proof of concept, or that they can't justify the cost of advertising to attract new users.
When venture funding was hard to come by, there was a need to maximize the runway provided by smaller seed rounds. The environment has changed and now there is an even greater need to allocate budget to compliance.
Speed and efficiency may be important for a startup, but regulatory compliance should not be a problem.
If compliance isn't a consideration from the start, founders will end up in a situation where they have to spend a lot of money on legal fees, and that's the best case. A deal can blow up.
These concerns can be overlooked at the beginning. There is a certain amount of creativity and dissatisfaction with the status quo that is needed for founders to conceive of building something that doesn't already exist.
A person in need of medical care is the ultimate end user of a digital health company. The stakes are higher when creating a food delivery app.
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