HealthTech startups are transforming patient care and system efficiency, but innovation alone isn’t enough. To build and scale successfully, they need strategic support and that’s where programs like Microsoft for Startups come in.
Recently, we sat down with Sally Ann Frank, Worldwide Lead for Health & Life Sciences at Microsoft for Startups, to learn how her team and ecosystem of partners help HealthTech innovators get to market faster, leverage scalable AI tools to reduce costs and future-proof their ideas.
These were just some of the key topics we discussed with Sally, who also shared insights on how Microsoft’s recent partnership with NVIDIA is empowering innovators, along with tips on integrating solutions into existing healthcare workflows and navigating challenges like data privacy and compliance.
Enjoy the interview!
Research2Guidance: Can you briefly introduce the Microsoft for Startups Founders Hub?
Sally Ann: The Microsoft for Startups program is designed to support early-stage companies in their growth journey by providing access to Microsoft’s technology. It’s a free program, open to startups across a variety of industries, with the goal of ensuring that founders have the tools and support they need to bring their ideas to life. We currently have tens of thousands of startups involved, covering a wide range of industries, including AI and cybersecurity.
We also offer specialized programs for startups in auspicious sectors. For example, we have one program focusing on scaling AI startups and another, the Pegasus program, which targets specific industries like health and life sciences, retail, cybersecurity, and AI. These programs provide more in-depth support, including dedicated cloud solution architects and success managers who help these startups integrate and sell within the Microsoft ecosystem.
Research2Guidance: It’s impressive to see Microsoft’s broad support for startups. With such a wide range of startups participating, do you ensure that the solutions they develop create a meaningful impact?
Sally Ann: That’s an interesting question. We don’t limit the types of projects startups can work on, but for those focused on social impact, we offer specific programs. When applying, startups can indicate if they’re working on social impact initiatives, and they’ll be included in our cloud programs designed for such startups. Other than that, we don’t impose restrictions. Just to clarify, we don’t support projects related to crypto or Bitcoin.
Research2Guidance: You recently announced a collaboration with NVIDIA Inception. What types of health and life sciences startups are most likely to benefit from this partnership?
Sally Ann: Our partnership with NVIDIA Inception is unique because we are approaching it through an industry-specific lens, starting with health and life sciences. We are focusing on a select group of startups from both our programs to work closely on joint technical development and go-to-market strategies.
What’s particularly exciting is that this collaboration gives high-potential startups access to NVIDIA’s powerful hardware, which is fully integrated with Azure. This setup provides life sciences companies with the computing resources they need, particularly for applications like digital biology, imaging, and other areas that demand immense computational power.
On the life sciences side, we are eager to leverage NVIDIA’s hardware alongside Microsoft’s technology to support the creation of breakthrough solutions in biology, new proteins, genomics, and related fields. This combination of resources, along with our connections in the health and life sciences ecosystem, will help startups transform the industry.
The initiative is already underway, and we’re in the process of bringing together the first batch of startups that will participate in this program. Like any startup, we plan to iterate and adapt as we go, incorporating feedback from both the startups and potential end customers. Our first joint technical training session was this last December, marking an exciting step forward in this collaboration.
Research2Guidance: Many HealthTech companies struggle to scale or maintain their impact. In November 2024, the primary care provider Forward shut down, despite raising over $500 million. In your opinion, what are the key reasons these companies fail?
Sally Ann: When I look at companies like Babylon, Olive, Forward, and even Ruth Health, one common factor I see is a lack of managed growth. After securing funding and achieving high valuations, many companies push forward at full speed, assuming growth will come naturally. However, unplanned or poorly managed growth can lead to significant challenges. The question becomes: Are you diversifying too quickly, or not soon enough? Are you trying to enter too many markets or expand to too many geographies without the necessary infrastructure to support them?
When growth isn’t thoughtfully managed, companies can quickly find themselves out of their depth. They may lack the technology, people, or regulatory resources to keep things running smoothly. Essentially, they’re moving too fast without the proper foundation, which leads to problems down the line.
Another issue I often see, especially with early-stage companies, is the tendency to focus on point solutions without considering how their product fits into existing workflows. Too many solutions, whether in healthcare or life sciences, are designed in isolation, like a standalone portal or dashboard. The reality is, that if your solution isn’t integrated with existing systems like lab automation or EMRs, it won’t be adopted at scale. While it’s fine to start with a pilot or a smaller user base that’s willing to tolerate these isolated solutions, it’s not a sustainable model for long-term growth. Without integration, the solution’s impact and scalability will be limited.
Research2Guidance: Microsoft has expanded its presence in healthcare with initiatives like cloud solutions and AI for drug discovery. How do you see Microsoft for Startups contributing to the company’s broader healthcare strategy?
Sally Ann: I see Microsoft for Startups as a key driver of innovation within our broader healthcare strategy. At its core, Microsoft is a platform, tools, and productivity company. We provide the foundational technologies, but it’s our customers and partners who take those tools and apply them in meaningful ways to solve real-world problems.
Startups are at the forefront of tackling the toughest challenges in healthcare. They’re pushing the boundaries of what’s possible, and even when they don’t fully succeed, they provide valuable insights that drive progress—for both themselves and for us. This is where the true innovation happens: at the tip of the spear.
Our role is to empower these startups with the tools, platforms, and support they need to build impactful solutions. From there, they work with partners, system integrators, and other collaborators to bring these ideas to life and address the complex needs of the healthcare ecosystem. So, while innovation is happening across all levels, the most groundbreaking work often emerges from the startups, as they take bold steps toward solving the most difficult problems.
Research2Guidance: Trust and data privacy remain significant challenges for startups. How do you support these companies in addressing these specific issues?
Sally Ann: Our approach is to provide startups with the tools they need to build and meet regulatory requirements. However, when I speak with startups, I often recommend that they engage with a fractional expert or a third-party company that can guide them through this process and ensure they stay on track. We also have several cybersecurity startups in our program, along with specialized cybersecurity tools, particularly for health and life sciences. It’s important to note, though, that while we provide these resources, startups need to implement them and work with external parties to ensure compliance.
For example, we have organizations like Drata and HITRUST within our ecosystem, which both early and later-stage companies can leverage. Additionally, we’ve curated a list of global law firms specializing in regulatory matters, many of which offer startup-friendly rates for companies coming through the Microsoft program. Our goal is to equip startups with the tools and resources to get started. However, it’s important to clarify that we’re not the final authority on compliance, and we cannot assume liability. We must remain focused on our own products and services.
We always emphasize that security is a shared responsibility. It’s not just about what we can do at the foundational level but also what our partners do and how they leverage our tools to ensure safety and security. Ultimately, the end customer also has a role to play in maintaining security. For example, if a medical chart is left unattended, it’s no longer secure. Similarly, if a customer requests data deletion under European regulations, the startup is responsible for fulfilling that request.
Research2Guidance: Is there a specific market outside the US that Microsoft for Startups is particularly focused on?
Sally Ann: We operate globally and don’t have a preference for one region over another. However, in the health and life sciences sector, we’ve noticed an interesting trend. Startups, regardless of where they’re based – whether in India, Israel, Germany, Denmark, or Morocco – often set their sights on the US market.
The US healthcare system, with its fragmented nature, presents both challenges and opportunities. It’s not a monolithic system, which means startups can run small-scale pilots in places like Arizona and still attract attention from other clinics nearby, as we’ve seen with one of our earlier-stage startups. The fragmented nature of the US health system allows for more localized experimentation, but it also creates a need for solutions that can scale across different states and regions.
So while many startups are doing well in their home countries, they are eager to tap into the US market for its potential reach and complexity.
Research2Guidance: What trends are you most excited about right now?
Sally Ann: There are quite a few, but I’ll highlight a few key ones. First, I’m excited about equal access to healthcare. Technology will continue to play a major role in ensuring that everyone can access the care they need with the quality we expect. We’re facing a global challenge with an aging population and a shortage of healthcare professionals, so technology will need to bridge that gap.
Second, I’m interested in the shift from a “reactive” healthcare model to a focus on prevention. We’re learning more about how to change our behaviors today to improve our health over the long term. While we’ve made great strides in extending lifespan—many people live into their 80s and 90s—we also see a growing issue. For example, in the U.S., many women experience health issues starting around age 67, but they live well beyond that. The challenge is to extend the healthy years of life, not just the number of years lived. Understanding our environment, diet, physical activity, and genetic makeup, and using that information to guide a healthier lifestyle is something I find really compelling.
Lastly, I’m working with companies using AI to detect early signs of diseases. For example, there’s growing research into using images of the eye to identify conditions like dementia, heart disease, and diabetes in their early stages. It’s fascinating to think about how we can use AI to detect these diseases before they become severe and how that could transform healthcare. These are the areas I’m most excited about right now.
Research2Guidance: Sally Ann, thank you so much for this insightful conversation. We wish you and the entire Microsoft for Startups team continued success, health, and a wonderful year ahead.
ABOUT Microsoft for Startups
Designed for founders that are ready to start their business, Microsoft for Startups provides benefits and support that help you build the best big idea. Discover scalable AI tools that help cut costs and future-proof your business. For more information, visit: https://startups.microsoft.com/