US healthcare system costs have ballooned out of control. Bloomberg News predicts that by 2021, healthcare spending will reach 20% of the total US economy. If there was ever a time for healthcare disruption, it’s now.
The Health Startup Funding Landscape
2017 was previously the biggest year for healthcare startup funding. Then in Q1 2018, $1.62B was invested across 77 digital health deals, and from there, it has only grown with 2018 looking to top 2017. However, that does not mean there aren’t still challenges. In fact, many startups we talk to in the health sector are still struggling to find capital as competition is fierce.
Health Startup Funding Challenges
One of the most significant challenges a startup can face is finding the funding they need to get started. This is especially true in health. Many founders find themselves investing quite a bit of their own money. While this may be an option for some serial entrepreneurs, it is not an option for all.
Young entrepreneurs often have smaller networks, making it hard to get in touch with the right people at the right time. Many of the traditional VC companies are simply out of reach. But funding doesn’t have to be so hard. Young startups may want to also look at smaller venture resources firms that can help with capital and professional services.
Why Choose Venture Resources for Funding
For startups to obtain the level of funding they need to grow, it’s essential to have a certain level of industry expertise, as well as proven results demonstrating why investors should back your company. Without that, finding the capital, you need to grow can be a catch-22.
This is where venture resources come in. Beyond offering funding, venture resource firms provide guidance at every turn, thereby helping to overcome the common hesitation among traditional VCs.
As a result of the professional services, startups can expect to get support with:
- Entrepreneurial guidance
- Tech support
Taking your company to the next level involves much work, and you’ll want to do it right. Venture resource firms like Cloudshadow can help by being there every step of the way.
So are you ready to grow your health startup? Take the plunge and contact Cloudshadow today to discuss how we can help your business.