So You Wanna Build a Software Company in Healthcare?
Jan 4, 2021
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Jorge Conde and Julie Yoo discuss the unique challenges of building a software company in healthcare, including regulations, market dynamics, and barriers to entry. They also explore the importance of balancing software and human services, data analysis, timing, achieving product-market fit, and navigating regulatory issues and incumbents in the industry.
Building a software company in healthcare comes with unique challenges that other entrepreneurs don't face.
Healthcare founders need to understand the regulatory barriers, market dynamics, and barriers to entry that exist in the healthcare space.
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Building a software company in healthcare is complex and challenging
The BioEatsWorld podcast explores the unique challenges of building a software company in the healthcare industry. A16Z General Partners Jorge Conde and Julie Yu discuss the complex nature of healthcare company building, highlighting the regulatory barriers, market dynamics, unusual incentive structures, and barriers to entry that exist in the healthcare space. They share their personal experiences as founders and offer insights on what founders need to consider when building software companies in healthcare.
Obstacles and considerations when building a software company in healthcare
Building a software company in healthcare is fundamentally different from other sectors due to regulations, market dynamics, and barriers to entry. Software in healthcare historically has had challenges such as poor user experience and low perceived value. The healthcare system's risk aversion and the need for thorough validation create higher barriers to entry and higher stakes. Entrepreneurs need a deep understanding of healthcare workflows, problem spaces, and the ability to provide solutions that address acute pain points in the system.
Building a software company in healthcare is hard—and comes along with unique challenges no other entrepreneurs face. In this conversation, a16z bio general partner (and previous founder of genomics company Knome) Jorge Conde; and a16z bio partner and former founder Julie Yoo (of patient provider matching system, Kyruus) share their mistakes and hard earned lessons learned with Bio Eats World host Hanne Winarsky in this now classic episode, first aired on the a16z Podcast.
Why is this so damn hard? How should founders think about this space differently? What are the specific things that healthcare founders can do—when, where, and why? You wish you only knew all this when you started your own company.
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