“Move fast and break things” is a bad idea for startups in medical technology – TechCrunch

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It may seem unreasonable, but one of the reasons why some entrepreneurs are involved in health care is the rules. No industry, other than the defense industry, is considered so carefully, and rightly so: if you’re dealing with people, extra caution is needed.

The rules, requirements, and complexity of regulation can be barriers to entering the world of digital healthcare startups, but they also present opportunities.

Founders often find creative ways to coordinate additional oversight, such as saying their launch is just proof of concept, or that they can’t justify spending hundreds of thousands of dollars a month on advertising to attract new users.

When venture funding was scarce, there was an urgent need to prioritize speed and maximize the runway with fewer launch rounds. The environment, however, has changed – growing investor interest and large available capital have meant that there is an even greater need to allocate a significant budget to meet the requirements.

Speed ​​and efficiency may be important for startups, but compliance with regulatory requirements should not be a bottleneck or a financial outflow.

If compliance is not an opinion from the beginning, the founders will sooner or later find themselves in a situation where they have to fix everything behind the scenes, spending huge sums of money on legal fees – and this is the best option. In the worst case, the deal could break.

It is clear how in the beginning you can not notice these problems. There is a certain amount of creativity and dissatisfaction with the status quo needed for founders to conceive of creating something that does not yet exist.

But if you are creating a digital healthcare company, the end user is the person who needs medical care. The stakes are higher than creating the next puzzle game or food delivery app.

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