As summer is coming to its end, now would be a good time to reflect on the changes that have occurred in U.S. healthcare since last summer, and take a look at some of the opportunities that lie ahead for entrepreneurs and investors. Driven by major cost levels, ever increasing consumer activism, advancement of digital technology, and health care reform, the $3 trillion weight healthcare economy is undergoing a gradual process of transformation, and the past year has brought on some important milestones. In this, risky business called, some entrepreneurs are driven by their personal experiences in healthcare, while others like Joel Landau, have created their companies, or helped others out of a growing demand for guidance and help.
The Boomer generation is retiring, and a great deal of them is fairly IT savvy, and as they get older, they want, and insist on staying at home for as long as possible, thus avoiding institutionalization costs. The founder of Allure healthcare and visionary, Joel Landau, points out that this could enable a whole spectrum of products and services. This boom in business opportunities and inventions is also driven by the increasing demands of this aging population, requiring better care, and adoption of technology like wearable tech, or video chats into the medical mainstream.
Most of you will probably agree with Landau that this is in fact the golden age for entrepreneurship. The dropping costs of technology are making tools for building new companies, and all ingredients for startup revolution, more available to entrepreneurs than ever before. Not only to Allure Group, but last year was also a record year for funding in healthcare. With $6.5 billion invested in new healthcare ventures this was a 125% increase when compared with 2013. Young health professionals, patients, engineers, designers, entrepreneurs and those with fresh eyes on healthcare problems can now make large and rapid impact. Testing of new solutions and business models are enabled by new funding sources that have expanded beyond traditional venture capital, and have turned into major investor networks, ventures, and crowd-funding by engaged patient communities. The social impact of new technologies has inspired many young health professionals like Landau who now see startups as a vehicle for a long-lasting, meaningful impact in global healthcare.