Transforming industries: top 5 healthcare startups

Published in

urlaunched.com

8 min readFeb 1, 2024

Need some inspiration for your up-and-coming healthcare startup? Join us as we look at some of the top healthcare startups, as well as some guidance for creating a startup idea that customers love.

Sometimes a simple idea can transform the way people think about health, helping to save thousands of lives. For example, handwashing in hospitals only became routine practice in the mid-nineteenth century.

There are thousands of healthcare startups around the world — last year 575 were funded in the US alone — all making their mark on how we think about health.

If you’re considering launching your own healthcare startup in the year ahead and are looking for inspiration, we’ve put together this guide to help. Join us as we look at five of the top healthcare startups, as well as how to develop a startup idea that will help you see success.

Healthcare Startup 1: Headspace

Headspace is a guided meditation app with over 16 million users worldwide.

The company originally began as an events company, doing mindfulness talks and explaining the benefits of meditation. However, the company pivoted and launched its app in 2012 — earning over $240 million in funding from companies including Samsung Ventures and Spectrum Equity.

Since then the company has worked on a series with Netflix and merged with coaching platform Ginger to offer mental health support to businesses.

Healthcare startup 2: 23andMe

23andMe was founded in 2006. In the past, if you wanted genetic testing, you had to go through a laboratory, but 23andMe meant people could get accurate testing with just a mouth swab.

In 2014, the company ventured into ancestry testing, meaning people could find out more about their family tree and find relatives against 23andMe’s DNA database.

With over 10 million customers worldwide, the company has raised over $480 million in funding from companies, including Google Ventures and Sequoia Capital.

Healthcare startup 3: Tempus

Launched in 2011 by Eric Lefoksky, Tempus uses artificial intelligence (AI) to analyse patient data and identify patterns and trends, especially in oncology and neurology.

The company has raised over $200 in funding from investors, including Salesforce Ventures, GV, and Kleiner Perkins.

Over 500 hospitals worldwide use Tempus technology, and the platform currently handles over 200 petabytes of data.

Healthcare startup 4: Maven Clinic

Maven Clinic was founded in 2014 by American entrepreneur Kate Ryder. The startup specialises in providing virtual care to women and families at all life stages, including family building, pregnancy, parenting, and menopause, and currently has over 150,000 members.

The company has raised over $160 million in funding from investors, including General Catalyst, Sequoia Capital, Lerer Hippeau Ventures, as well as from Oprah Winfrey.

Healthcare startup 5: Medely

Slightly different to the other healthcare startups on this list, Medely specialises in allowing healthcare professionals to book work and assignments on a per diem basis. Hospitals and healthcare providers can also use the platform to find part-time staff.

Launched in 2014, the platform is used by over 2,000 hospitals worldwide and has raised over $100 million from investors, including Khosla Ventures and Andreessen Horowitz.

Top healthcare apps to keep an eye on in 2024

We’ve shown you some of the top healthcare startups in the world, but startups come in all shapes and sizes! The great thing about the healthcare industry is that there are many different sectors to focus on — from fitness tracking and IoT devices to geriatric care.

Here are some healthcare startups that you might not have heard of but are doing amazing things to help people manage their health.

Clipboard Health. Clipboard Health allows healthcare professionals to book open shifts at nearby health facilities and get paid directly within the app. Likewise, facilities can use the app to find top talent and instantly fill available shifts
Dispatch Health. Dispatch Health is a US-based health startup that provides healthcare services directly to people’s homes
Hertility. Hertility offers at-home hormone and fertility testing for women
Nference. Nference allows healthcare providers to access decades of high-quality, unprocessed data and use it to gather valuable health insights
Paige. Paige uses generative AI to help doctors make accurate cancer diagnoses
Sondermind. Virtual mental health care is a big market right now, with many people taking advantage of it during the COVID-19 pandemic. Sondermind helps put people in touch with the right provider and track their therapy journey
YouMari. Got aches and pains but can’t get to the doctor? YouMari is the only self-treatment clinical quality system in the world, developed based on the industry’s most effective provider-applied care models. Identify your problem areas on the innovative 3D model and get a personal treatment programme. If you have any questions or need more support, you can make an appointment through YouMari’s telehealth portal

Things to bear in mind when developing a healthcare app

What do you need to consider if you want to become one of the world’s top healthcare startups? Here are some of our top tips for delivering a high-quality, comprehensive, and, most importantly, safe, platform for your customers.

1. Understand your target audience

This is something that is critical no matter what type of startup you’re creating, but especially so with a healthcare startup — you need to know your target audience.

35% of startups fail because there is no market need for them. This means you need to understand who you want to download your app and how to make it appeal to their needs.

For example, if your app or platform will be used by older adults, it’s vital that it is easy to use and has lots of large, easy-to-click buttons.

It’s important to do market research before you build your app — ask potential customers what they want to see and look at what your competitors are doing.

2. Make sure you’re compliant

Healthcare startups need to keep close control of their data — you’re handling information about potentially vulnerable clients, as well as lots of personal details.

If you handle US citizens’ data (regardless of whether you’re based in the US or not), you need to abide by the Health Insurance Portability and Accountability Act, commonly known as HIPAA.

With HIPAA, you need to ensure that any information that could potentially identify a patient, like medical records, video chats, and insurance information, is kept confidential and secure. If not, you may need to pay a penalty per violation, which can range from $100 to $50,000, depending on the severity.

Here is a HIPAA compliance checklist to make sure your app is reliable and secure.

If you don’t handle the data of US citizens, you may still need to adhere to data protection regulations in your own country, like GDPR in Europe and the UK. Some American states may also have their own data security laws to be aware of, like the California Consumer Privacy Act.

It’s critical to understand and comply with healthcare regulations. If you don’t have a legal specialist in your in-house team, you might want to hire a legal agency to make sure you stay compliant and meet requirements.

3. Use the lean startup methodology

The healthcare market is very competitive, with many startups offering very similar platforms and apps. This means launching quickly can give you an advantage in a crowded marketplace.

This is where lean methodology comes in. With lean methodology, the aim is to launch your app as soon as possible, something which you can easily do with a minimum viable product or MVP.

An MVP is a ‘no-frills’ version of your app that only includes the features your customers want. Of course, you can add additional features to your app later down the line as you get feedback from your customers.

Find out more about the lean startup in healthcare

4. Get funding

Healthcare startups can be costly as there are additional regulations and laws you need to factor into your build. This can make bootstrapping a startup challenging.

How much does it cost to develop a startup? It depends on the type of platform or app you’re creating and the skills you need to build it. However, by our estimations it can cost at least $50,000 to develop a HIPAA-compliant mobile app.

Getting funding can make building your startup much easier. Plus, your investor may already have experience in the healthcare industry, meaning they can offer advice and connect you with relevant partners.

If you’d prefer to keep your equity, you might be able to get a grant instead. Many governments are keen to invest in the STEM sector, so your chances of getting funding if you work in the healthcare sector are good.

Alternatively, why not consider crowdfunding? There are a wealth of platforms like Seedrs and MedStartr that specialize in equity crowdfunding for health and well-being startups.

We’ve put together some articles detailing where to get investment and funding from wherever you are in the world:

Want to create a stunning pitch deck that gets a potential investor’s attention? This guide to pitch decks will tell you everything you need to know.

5. Ask for customer feedback

It’s vital to foster patient engagement and empowerment when developing a healthcare startup.

Encourage feedback every step of the way, including asking users for their feedback through emails and in-app notifications. This will help you determine which features customers like and dislike and also build customer loyalty. If you take the time to ask for people’s opinions, they’ll reward you by becoming keen advocates for your startup.

You can also get a feeling for what your users like and dislike about your healthcare startup by reviewing your metrics. For example, if you launch a new update and your churn rate suddenly increases, it’s a sign that your users don’t like the new change.