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Healthcare Challenges and the Investment Opportunities -2
Healthcare Challenges and the Investment Opportunities -2

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Healthcare Challenges and the Investment Opportunities -2

A Blog Series on Healthcare Innovation Challenge

 

Healthcare is a sector of many opportunities but along with these opportunities, there are lot of associated challenges. As discussed in our earlier blog, the Healthcare ecosystem is going through a transformation, but this transformation is also going through a lot of challenges. Some of the challenges highlighted by the experts at Healthcare Innovation challenge are:

Challenges for the Healthcare industry:

  • Lack of private players contributing to the growth of innovation in the Healthtech sector
  • Converting great ideas to an adaptable and scalable solution
  • Solution lacks solving the real-world problems like affordability, access, quality care etc.
  • Some start-ups focus too much on R&D and innovation without paying attention to other important areas like GTM etc. 

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But why do such challenges exists?

  • Long gestation period
  • High failure rate
  • Absence of patient risk capital
  • Development experience in India is less in India
  • Lack of mature infrastructure that can attract funding
  • Lack of dedicated Healthcare venture fund
  • Mature start-ups are registering themselves outside India for better valuations and investment prospects.

Investment is one of those important parameters that play a key role in the growth of a sector. Its importance is more valid in the case of the Healthcare sector because of its capital-intensive nature. India Healthcare sector attracted ~$57 billion of digital health investment from venture funding but as per experts choosing the right investment is still a task and brainstorming activity for the investors. Right investment strategy has often been brainstormed by Healthcare industry experts. So, what are the right investment strategies? Let’s see what the HIC expert panel has to say:  

Choosing the right investment:

  • Business should target to offer an affordable healthcare solution
  • Business model that works in Metro and Tier 1 cities are entirely different from lower-tier cities
  • Entrepreneur should be smart enough to understand the low tier market because that is where most of the population needs affordable healthcare
  • Working with government systems and government paired mechanisms is important
  • Price + Volume + Technology = Business focus
  • Good scalable solution requires patience and investment from the investor

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After the pandemic, there is a spurt in entrepreneurial activities in the Healthcare sector. A lot of new start-ups have come up with technological solutions but if we look at the care delivery sector, technology adoption is still low and it is nearly the same from the past many years. That’s why a strong focus of investors is towards care delivery.

Also, if we talk about the demand for digital health solutions then surprisingly the demand for new-age solution is coming from areas that are never heard off. This solidifies the fact that the lower Tier series can offer great business opportunities if we provide them with high-quality, affordable solutions.

So, Healthcare sector offers plethora of opportunities right from demand side to supply side. Challenges in this sector need to be properly managed so that it can be turned into a huge business opportunity.


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