Hot healthcare startups are driving disruption in a market craving innovation, witnessing a resurgence of investment activity according to Everest Group research.
From more than 200 healthcare startups, Everest Group has identified the Top 25 Healthcare Startups of 2016, based on criteria such as technology disruption, business disruption and market buzz.
“Although the investment climate has become more moderate in general, healthcare is witnessing a resurgence in investment activity, especially in the area of innovative care delivery,” said Abhishek Singh, practice director with Everest Group and leader of Everest Group’s Healthcare & Life Sciences research practice. “The healthcare market, particularly in the United States, suffers from issues of cost, access and quality. Stakeholders are trying to tackle those issues with technology solutions, which makes healthcare a fertile field for start-ups with fresh approaches, disruptive technologies and sufficient sources of start-up funding.”
From an initial long list of more than 200 companies, Everest Group identified a short list of 50 companies based in North America that were able to raise sufficient funds from the market. These 50 were assessed on the following evaluation criteria:
- To what extent has the start-up addressed existing challenges through technology?
- To what extent has the start-up created new channels via technology?
- To what extent has the start-up transformed existing business functionality?
- To what extend has the start-up created a new market or a new ecosystem?
- How much trust have the investors shown in the startup?
- What kind of market recognition has the startup received?
The “leader board” of the Everest Group list of hot healthcare start-ups comprises five highest-ranking companies in each of five focus-area segments:
- Clover Health
- Remedy Partners
- RedBrick Health
Electronic health records:
- Health Catalyst
- American Well
- Doctor on Demand
Three new Market Insights™ published by Everest Group graphically depict these findings:
- Hot Healthcare Start-ups 2016
- Why Healthcare Start-ups Are Hot
- Healthcare Start-ups: Implications for Buyers and Providers
These high-resolution graphics are available for complimentary download and may be included in news coverage, with attribution to Everest Group.
A more detailed discussion about the ranking is available in “Hot Healthcare Start-ups: Dawn of a New World Order.” This report provides a detailed analysis of each of the 25 hot healthcare start-ups, including a business overview, leadership details, funding trail, disruptions across technology and business, and market buzz. The report also focuses on opportunity in the healthcare value chain, implications for enterprises and service providers, and an assessment of key investment markets.