What makes a winning healthtech startup: 5 must-have characteristics | Medical Economics

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I’ve worked in the tech industry for more than 25 years. And when I saw the impact technology could have on health care, I was smitten. Over the past several years, I’ve led the global Health and Life Sciences program for Microsoft for Startups.

Certain commonalities jump out across successful teams, and many of these concepts were developed when writing “The Startup Protocol: A Guide for Digital Health Startups to Bypass Pitfalls and Adopt Strategies That Work” and confirmed when I did my research for my just-released book, “The Unicorn Protocol: Digital Health Unicorns, How They Got There and What You Can Learn from Them.” It’s my job to scout and try to identify the winners to drive positive change, so here are the top things I consider.

#1: Mission-Driven Leadership

The founders who create the most innovative and meaningful healthtech solutions are the ones called to solve a particular problem, often because of a personal experience related to a health condition or because they are a clinician or scientist eager to address a pressing or complex issue. These founders become obsessed with fixing a flaw, streamlining workflows, accelerating diagnoses to enable treatment to begin more quickly, or improving management of chronic conditions.

They bring a uniquely human, highly personal connection to the problem. This connection helps founders persist through failure and adversity. They are driven to keep going because they are invested at their core. Almost without exception, founders infused with servant leadership will complete the mission — and when they do, the money and customers will follow.

#2: Market Understanding

Just because you have identified a problem that seems massive to you doesn’t make it so. There are good ideas in abundance, but successful execution requires both research and validation. Figure out who you are selling to and if they’re willing to pay for your solution. Health care is not a market for “nice to have” technology.

Proxy customers, as outlined in “The Startup Protocol,” are invaluable in assessing whether you’re solving a genuine pain point. Use clinicians and other users to validate your concept through mockups and minimum viable products (MVPs). Get them to use it and provide feedback. By bringing them along on your journey, they become emotionally invested in your success, creating a network of advisors, evangelists and, ultimately, paying customers. Not only will they help you make your product or service better, they’ll also be invaluable in proving your concept to investors.

The health care landscape is littered with brilliant solutions no one wanted to purchase. Winning startups validate demand early and often.

#3 Seamless Integration

This one is non-negotiable. If you’re building something for clinicians, staff or researchers, it has to integrate with what they already use. Full stop. The moment they must leave their workflow to open a different application, you’ve lost them. Winning startups don’t create more isolated tools; they integrate seamlessly into existing workflows and systems. Clinicians are invested in current systems, and their time is too limited to adopt something that operates independently.

This means understanding the EHR ecosystem, billing systems, and clinical workflows before you write a single line of code.

#4 Team Composition

Is a founder coachable? It’s really easy for founders to think they know everything. This is natural because they have such a belief system built around what the company should be and how it should achieve its mission. But the ability to listen and learn from outside perspectives, even from people they don’t know very well, can prove essential.

I also look at who’s been hired. Did the founder stack the team with friends and family members willing to grind with them, or did they seek out individuals with specific, complementary skills or knowledge bases in clinical, regulatory, technical and business domains? Do they have relationships with VCs, accelerators or prospective customers that can support their growth and development? Vision alone doesn’t cut it. They have to have the right talent, relationships and mindset in place to execute on that vision.

#5 Adaptability

We’re all witnessing how fast innovation can move during this AI era. Markets are dynamic. Successful founders are flexible. For example, they might start solving one problem but pivot when they discover a more pressing need.

Adaptability isn’t always represented by something as dramatic as changing course. One AI startup, for instance, demonstrated flexibility by selling options on future products before building anything, showing flexibility in their business model. A biosciences company I know found success by identifying an untapped middle ground between an established giant and several small players in DNA sequencing. CharmHealth started as a patient portal for families facing autism diagnoses who needed information and community but evolved into a successful EHR when founder Pramila Srinivasan spotted a broader market opportunity.

Closing Thoughts

Building a winning healthtech startup is a massive but deeply rewarding undertaking. Innovators can change the world positively. The most successful founders are intrinsically motivated by personal experience, unafraid to listen and collaborate, and are willing to adapt as needed.

As I continue mentoring health care innovators through Microsoft’s programs, I am inspired by today’s founders who approach health care challenges with both humility about the industry’s complexity and boldness in reimagining its future. When the five elements I’ve highlighted align, something magical happens. Startups don’t just succeed commercially; they fundamentally transform how healthcare is delivered and experienced.

Sally Ann Frank leads the worldwide HLS strategy, programs and portfolio for Microsoft for Startups, an organization dedicated to accelerating the development of innovative companies. Through business strategy planning, go-to-market development, and technical excellence, she enables startups to achieve their revenue and long-term goals. Sally is also the author of “The Startup Protocol: A Guide for Digital Health Startups to Bypass Pitfalls and Adopt Strategies That Work”and “The Unicorn Protocol: Digital Health Unicorns, How They Got There and What You Can Learn from Them,” both from Routledge Press. She earned an MBA from The George Washington University (Washington, D.C.), an MS in systems management from the University of Southern California, and a BS in marketing with a minor in computer science from Virginia Tech.

To explore these themes in more depth, listen to the entire Digital Health Disruptors Podcast episode, How Microsoft Picks Winning Health Startups with Sally Ann Frank.



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