Shifts in HealthTech Startup Focus: From Diagnostics to Data-Driven Healthcare in a Decade
R2GConnect insights note: A recent R2GConnect database analysis of more than 2300 digital health startups founded between 2015 and 2024, highlights key shifts in new startup solution types in the past ten years. There is a clear connection between market trends and digital health offerings at the time of founding.
Which digital health solutions have startups launched over the last ten years and what connections can be seen with the changes in the market environment?
An analysis of 2,358 startups registered on R2GConnect shows that startup founders sometimes dare to launch their solution many years before a hype occurs. This is especially true for telehealth, RPM (Corona) but also DTx solutions.
Founders of AI solutions and at the COVID-19 pandemic peak (2019-2022) the founders of diagnostics and detection solution startups seem to be jumping on the bandwagon. It is not yet clear which strategy is the right one. Being on the market too early has been fatal for many telehealth providers, for example. On the other hand, most AI start-ups are unlikely to be able to stand out from the multitude of new solutions.
What can we observe?
- Launches in diagnostics & detection: New startups offering diagnostics & detection solutions were among the most popular until 2022. Up to 28% (2019) of all new startups fell into this segment. This category includes tools such as skin cancer and COVID-19 detection solutions that work in conjunction with a sensor or without (e.g. questionnaires). After the end of the pandemic, the launch numbers dropped to as low as 4%.
- Telehealth and RPM: Start-up launches in the field of telemedicine and remote patient monitoring in the period 2015-2021 always accounted for between 6%-15% of all new start-ups. During the COVID-19 pandemic, there was another peak in start-ups. However, the number of start-ups in this area fell sharply after the pandemic.
- AI tools: The share of startups in the field of data integration and management, data analytics, and AI in digital healthcare showed a stable fluctuation during 2015-2021 and a significant increase since 2022. In new startups founded in 2022, 12% focused on the field of data analytics and AI, and 4% on data integration and management. These are data-centric AI-based products and AI-native applications to perform tasks related to massive amounts of data, develop data science models, and reduce costs and time. AI startups on R2GConnect also reported that they use AI/ML and adaptive technologies to analyze the data from electronic health records and biomarkers and recommend and predict personalized treatment for patients based on their individual genomic and molecular profiles.
- Other solution categories within the top 10: Launches within all other categories including symptoms tracking, medical devices, clinical trials, digital therapeutics & biomarkers, and care coordination fluctuate around a 5% share each of all startup launches over time.
Other solution offers were less prioritized by healthtech companies at launch. Their share varies between 1% and 8% and include: Virtual Reality, Claim and payment management, Pharmacy solutions, Development platform / White label, Marketplace, Patient assistant, Glucose monitoring, Education and information, Medication adherence, Population health management, Real-world evidence, Self-management, Disease management.
Why is this important for companies in the healthcare industry?
Companies looking for innovation partners in one of the areas in the top 10 have more choices and are more likely to come across startups that have already worked with larger companies. In these areas, partners can be found with little effort. In other areas (not shown), a complex search and selection process is usually required.
R2GConnect is the largest global matching platform for digital health partnerships and investments. To learn more please visit www.r2gconnect.com.
