Medtech start-ups are shifting away from traditional therapeutic devices toward proactive care solutions, with a heavy emphasis on advanced digital capabilities, according to a recent analysis from Deloitte Consulting and MedTech Innovator. Excerpted from our recent conversation with Glenn Snyder and Paul Grand.
A recent analysis from Deloitte Consulting, in collaboration with MedTech Innovator (MTI), finds that medtech start-ups are rapidly shifting their focus away from treatment solutions and toward disease prevention, detection/diagnosis, and post-acute and chronic care, with a heavy emphasis on incorporating advanced digital capabilities. The analysis offers insights into the current state of the medtech start-up ecosystem and how innovators are adapting to address the evolving patient journey (see Figure 1).
For the analysis, Deloitte surveyed 1,008 companies that applied to participate in MedTech Innovator’s 2021 Accelerator program, a global competition and mentorship program for medtech start-ups that have reached at least the device prototype stage and have not progressed beyond a Series D funding round. More than 6,000 young companies have applied to the highly selective program since 2013, and graduates have a stellar success record, with 95% of the 340 alumni still operating and 85 products commercialized to date. In addition, to gain a deeper perspective on trends in the industry, Deloitte also interviewed 14 executives from both start-ups and potential acquirers.
The aim was to determine if start-ups, which typically are at the leading edge of innovation, could “serve as the backbone” for a strategic, consumer-centered shift in the medtech industry that Deloitte predicts will unfold over the next two decades. That shift is expected to increasingly emphasize proactive care (wellness and prevention) over reactive care and to reward companies with products and solutions that can address the entire care continuum, from diagnosis to rehab.
The study uncovered several trends that suggest medtech start-ups are already embracing this changing healthcare landscape. Read our full Q&A with Glenn Snyder of Deloitte and Paul Grand of MTI about what this means for the future of medtech innovation.
Excerpted from “The Shifting Start-Up Ecosystem: Insights on the Future of Medtech,” MedTech Strategist, October 20, 2021.
Trial MyStrategist.com and unlock 7-days of exclusive subscriber-only access to the medical device industry's most trusted strategic publications: MedTech Strategist & Market Pathways . For more information on our demographics and current readership click here .