With an expected value of $171.9 billion by the end of 2024, and a forecast growth rate of 23.3% CAGR from 2023 to 2030, now is the perfect time for budding startup companies to launch onto the digital health market.
However, to survive in such a fast-moving, competitive industry, these companies must quickly build a loyal client base and catch the eye of potential investors if they hope to revolutionize the scope of healthcare. That’s where scaling comes in, which can be a tricky task for startups lacking the resources and industry credibility.
With 10 years of experience and a portfolio of more than 30 successful in-house and invested products, Kilo Health certainly knows what works when it comes to scaling a digital health product. Here, they explain some of the most common mistakes made by those hoping to make it big in the world of health tech.
Ignoring Consumer Pain Points
The key to successfully scaling a digital health company begins during the planning stage, where you’ll need to develop a strong business model. All too often, brands launch a product or service without properly understanding the end-user’s needs.
For example, users are generally looking for digital health solutions that are easy to navigate, so a complex or expensive platform won’t work well. These platforms should also make healthcare more accessible, without encountering long waiting times or needing to travel to see a physician.
Identifying key consumer pain points and creating products or services that overcome them effectively produces a solid foundation from which startups can grow. Provide an answer to a question, such as poor sleeping patterns or work-related stress, and begin to build a loyal client base that will support you through the scaling stage.
Going It Alone
Another common digital health startup mistake made is scaling too quickly, without access to the proper resources or expertise that help in navigating such a technical industry.
Startups also risk running out of capital if they don’t secure the proper investment beforehand. This is particularly relevant now, with global digital health funding declining during the second quarter of 2024 and the number of deals reaching its lowest level since 2014.
Early-stage deals have also dropped to 51% of investments, as many investors are looking to put their capital into solutions that are already scaled.
Building and maintaining partnerships is therefore crucial for startups wanting to expand, which could involve anything from financial partners and collaborating with healthcare providers to working alongside technology companies.
An alternative option is to find a partner that will assist you in all aspects of scaling – and that’s where Kilo Health can help. The global health and wellness company does this best through the Co-found Program, a unique initiative that helps budding entrepreneurs launch and scale their very own digital health companies from scratch.
Rather than the years it usually takes, co-founders can develop their product ideas and get them onto the global market in just a matter of weeks. This is thanks to Kilo Health’s financial backing, large operational capacity, excellent research facilities, and their team of digital health experts.
Find out more about the scaling power of the program and discover some startup success stories on the Kilo Health Co-found Program website.
Disclaimer
This article provides general insights and recommendations for scaling digital health startups. It is not intended as legal, financial, or professional advice. Consult with relevant experts before making business decisions based on the content provided.