How Startups Foster Innovation in Healthtech

Nearly 70% of healthtech innovations never reach the market. Launching a product in healthcare is 10x more complicated than regular tech products, so most first-time founders get lost along the way. After building and scaling over 100 healthtech products in the last 2 decades, here's the blueprint I use: ⏵ 1. Start with user needs Don't just survey doctors - observe them in action. Real insights come from watching how they interact with existing solutions. ⏵ 2. Prioritize regulatory compliance Begin documentation on day 1. The FDA looks at your entire development process, not just the final product. ⏵ 3. Clinical validation Get a medical advisory board early. Their expertise will shape your product and lend credibility with stakeholders. ⏵ 4. Establish data security One breach can kill your startup. Have redundant security measures, not just the minimum requirements. ⏵ 5. Design for scalability Your MVP should handle 100x your initial user base. Healthcare products can't afford downtime to rebuild. ⏵ 6. Focus on integration If you can't plug into existing hospital systems in under a week, most clients won't consider you. Period. ⏵ 7. Protect intellectual property File provisional patents before your first pitch. Healthcare giants have armies of lawyers watching startups. ⏵ 8. Plan for funding Budget 3x more time and money than you expect. The average healthtech product takes 18-24 months just to launch. Every step counts, and each decision plays a role in your success. Which step do you find most challenging? #healthtech #startups #innovation

After many requests to explain the idiosyncratic ways we do things at Sword, I was finally able to find the time to write a series of manuals that explain in more detail how we operate and our vision for transforming healthcare with AI. This is the first of, hopefully, many more to come. Manual #1: Planting the seeds of innovation As a historian of failed companies, one pattern I’ve seen repeatedly is this: companies find product–market fit, scale rapidly, and then slowly become irrelevant. Why? Because they become more focused on milking the cow than on creating new S-curves to drive growth. Founders are told —again and again— to focus on their success and not distract themselves with anything else. And through the ad nauseam repetition of that startup aphorism, they follow it blindly. I’ve always found this advice not only mind-numbingly boring (especially with my ADHD), but also the most obvious path to a slow death. And that’s why, at Sword, we’ve built a system that allows us to deliver on our core solutions while planting the seeds of innovation for future solutions that will compound our growth, and the value we deliver, over time. Here’s the TL;DR version on it if you don’t have the time, or the patience, to read long-form articles: • Innovation paradox: Companies that grow through innovation often stop innovating once successful, either by over-focusing on their initial vertical (hitting market ceiling) or spreading too thin across many initiatives (diluting resources). • Two clock speeds: Early-stage solutions need high-speed experimentation with minimal processes, while scaled solutions require slower, risk-aware systems—applying the wrong operating system kills innovation. • Dark forest approach: New solutions starting from zero should have no prescribed operating system, instead operating from first principles to find unique paths out of complexity (like following power lines out of the woods). • $1M/12-month constraint: Each new initiative gets strict funding limits to create urgency and creativity, with "VC-style" evaluation gates for continued funding—ensuring only money is at risk, not talent or focus. • Founding team is everything: Success depends on finding rare founders with high agency, creativity, and courage who challenge status quo—supported by shared services so they can focus purely on building customer value. And here you can read the full article: https://lnkd.in/dN-Xcmev

In MedTech, driving innovation isn't accidental. Here are 5 ways to get started: ↳ Bring teams together: Innovation thrives at the intersection of perspectives. Pair engineers with clinicians. Encourage diverse voices in every decision. ↳ Open the communication floodgates: Regular team meetings aren’t just updates—they’re opportunities. Use tools that make idea-sharing seamless. ↳ Build psychological safety: Create a culture where people feel safe to speak up. Mistakes? They’re not failures—they’re fuel for growth. ↳ Invest in growth: Equip your team with the training they need. From mastering new tech to understanding clinical impact, knowledge unlocks creativity. ↳ Celebrate the journey: Recognize wins—big and small. Whether it’s team milestones or individual achievements, celebrations inspire momentum. MedTech innovation begins with teams that feel supported, heard, and empowered. What’s one way you’ve fostered innovation in your team?