India’s healthcare sector is booming and is likely to grow to $638 billion by 2025. Technology is the driver of this change. The expansion is not only in the hospitals and clinics but also in innovation. Over 10,000 healthcare and life sciences startups have emerged in recent years, showing a remarkable CAGR of 127% between 2016 and 2023 (DPIIT, 2023). Still, there is a lag in the health tech industry, especially when it comes to clinically-led innovation. Therefore, the doctors are stepping into the health tech world to bridge this gap.
No longer confined to the four walls of a clinic, many physicians are now solving healthcare’s toughest challenges through technology. They are founding startups, designing digital tools, and using AI to make care more accessible, efficient, and patient-centred. But making the leap from white coats to founder hats isn’t easy, but it’s not impossible. This blog will help in exploring some of the important points doctors should consider before entering the world of health tech entrepreneurship.
Why are more Doctors becoming Health Tech Entrepreneurs?
Doctors, during their clinical experience, face various challenges on a daily basis, including outdated systems, delayed diagnosis, fragmented patient care, and administrative burdens. They are more aware of the challenges between patient care and the healthcare system. This, therefore, puts them in a better position to spot these gaps and come up with tech solutions that are practical and patient-focused to improve patient care and simplify healthcare processes.
Can a Doctor with no tech experience create a Startup?
Indeed, a doctor can start a startup; all he needs is to change his thought process. Physicians come with their experience of patient pain areas, system inefficiencies, clinical processes, and an inclination to do something for the patients. Pairing this expertise with a partner from the technology field can do wonders. Building the right team and learning the language of startups is the key to success.
Isn’t building a Startup risky?
Entrepreneurship always comes with risks, but doctors are driven by a mission to effect broader change. Staying consistent, learning from failures, and following patient-first thinking will take it to heights.
What skills should a Doctor develop before entering the Startup world?
Although a doctor is bestowed with critical thinking, resilience, and empathy, there are some useful entrepreneurship skills they should learn before entering the startup world. These are:
- Basic understanding of the startup and fundraising concepts
- Communication and pitching
- Product thinking and user experience (especially patient/provider interfaces)
- Digital health regulations and data privacy laws
How do Doctor-led Startups secure funding?
Funding is very important for a startup, although it is a challenge in India, especially for early-stage health tech startups. However, with time, the trend is changing, and investors are warming up to clinician-led ideas due to their authenticity and problem-solving approach. Many startups receive funding from healthcare-focused venture capitalists, participate in accelerator programs, government initiatives, or collaborate with hospital innovation hubs for both funding and mentorship.
To obtain funding, the entrepreneur must prepare well for pitches to investors, learn the expectations and requirements of investors, and be open when pitching to establish trust among investors. One may raise funds at various stages: pre-seed, seed, series A, series B, and series C rounds of funding.
What types of Health Tech Startups are Doctors starting?
They range from different areas, such as
- Telemedicine platforms
- Digital health monitoring
- Electronic health records systems
- Health data analytics
- E-pharmacy
- AI-based diagnostics
- Mental health platforms
What are the critical success factors of Health Startups?
Five key areas are important for e-health startups:
- Knowledge and Communication: Maintaining an expert team and making sure that the communication between all parties is clear
- Service Value and Effectiveness: Delivering valuable and effective services to users
- Strong Infrastructure: Establishing a solid and trustworthy technological platform
- Financial Management: Proper financial management to secure sustainability
- Regulatory Compliance: Compliance with healthcare rules and standards
Can Doctors stay in clinical practice and still innovate?
Yes, they can. Many of the startup founders start part-time, validating ideas, running pilot projects, or consulting for digital health platforms before going full-time. Some continue to practice while running startups, especially in early stages.
How is AI reshaping the Health Tech Startups?
AI is transforming the health tech startup world by making healthcare smarter, faster, and more personalised.
- Faster Diagnoses: AI helps analyse medical images (like X-rays, MRIs) quickly and accurately.
- Personalised Treatment: Startups use AI to tailor treatments based on patient data, genetics, and lifestyle.
- Virtual Health Assistants: Chatbots and conversational AI enhance patient engagement and assistance.
- Predictive Analytics: AI predicts health risks, assisting in early intervention and preventive care.
- Operational Efficiency: Automates administrative tasks such as scheduling, billing, and record-keeping, saving time and minimising errors.
In short, AI is helping startups reimagine how care is delivered, making it more accessible, efficient, and patient-focused.
When should I start building a Startup?
Every person is different, and there is no one-size-fits-all approach that you can take to switch from a doctor to a startup founder. Here are some points to note:
- Spend some time in identifying the real problem
- Talk to patients and providers, not just investors
- Don’t be afraid to ask for help from people in the technology field, like engineers or designers, or seek mentorship
- You don’t need to code, but you must understand your users deeply to build a successful startup
What does the future look like for Doctor-led innovation in Healthcare?
The future looks promising for health tech founders. As healthcare grows more digital, clinicians who understand both care and code will be essential. With growing access to AI, data, and funding, doctor-led startups could shape the next decade of global health innovation.
References:
- Schulz, B., Sailer, K., Weeger, A., & Gewald, H. (2023). Critical success factors of startups in the e-health domain. Health and Technology, 13(1), 153–167. https://doi.org/10.1016/j.hlpt.2023.02.001
- Silva, D. N., & Torkzadeh, G. (2023). Technology entrepreneurship in digital health: An integrative review and research agenda. Health Policy and Technology, 12(3), 100738. https://doi.org/10.1016/j.hlpt.2023.100738
- Business Insider. (2023, March). Meet the doctorpreneurs working to transform healthcare with tech. https://www.businessinsider.com/meet-the-doctorpreneurs-working-to-transform-healthcare-with-tech-2023-3
- Mandl, K. D., & Kohane, I. S. (2012). Escaping the EHR trap — The future of health IT. New England Journal of Medicine, 366(24), 2240–2242. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6502619/
- Investing.com. (2023). Indian healthcare market projected to reach $638 bn by 2025: Report. https://in.investing.com/news/indian-healthcare-market-projected-to-reach-638-bn-by-2025-report-4547506
- TheKredible. (2024). Healthtech’s rebound after a downturn: Healthtech sector shines again. https://thekredible.com/reports/details/healthtechs-rebound-after-a-downturn-healthtech-sector-shines-again
- Shaywitz, D. (2014, August 5). Why physicians are turning to startups. Forbes. https://www.forbes.com/sites/davidshaywitz/2014/08/05/why-physicians-are-turning-to-startups/
- India Brand Equity Foundation (IBEF). The rise of health tech startups: Bridging gaps in Indian healthcare. https://www.ibef.org/blogs/the-rise-of-health-tech-startups-bridging-gaps-in-indian-healthcare
Written By:
Swati Manik
An experienced medical writer with an MPharm degree, she is passionate about advancing healthcare. She combines her pharmacy expertise and writing skills to keep the community informed on the latest medical developments, offering valuable insights across a range of health topics.