The startup world is our time's gold rush. This is a theme that many have observed and identified over the past decade, but in the startup version of the gold rush, it is a lot harder to identify fool's gold. There are a lot of companies that are here today and gone tomorrow which is a necessary part of the innovation and competition that keeps the technology sector moving forward faster than any other industry. A sector where disruptors are commoditized and world-changing discoveries are commonplace. But, for every Elon Musk there are ten Elizabeth Holmes. Usually, the stakes are pretty low for consumers (consumers not investors) at worst you lose some money, write it off at the end of the year and gripe a little. The consequences of a failed startup in healthcare are a lot more severe.
A recent TechCrunch article outlines what happens when startups prioritize speed (features) over compliance:
The implications of leaving your patients alienated because a vendor going out of business are pretty serious. So why would anyone pick a startup as a vendor to begin with?
Frankly, they are the only ones trying to earn your business. The feedback loop between owners and customers in a startup is faster than any other in business.
Hyperbolic conversations:
| Startup | Corp |
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Potential Customer: If you had feature X I would subscribe. Startup: We will have it tomorrow |
Potential Customer: If you had feature X I would subscribe. Corp: It's on our roadmap for Q4 of next year* *Any feature scheduled more than 6 months in the future has no certainty of ever coming into fruition. This line is often used as a sales strategy. |