2024 Healthcare Entrepreneurship: Surviving the Squid Game Challenge!

As the curtain falls on 2024, we’ve witnessed a digital health landscape filled with both triumphs and tumbles, where even the biggest names took a hit.

Yet, despite the setbacks, investment and innovation in healthcare remain unabated.

So, as we gear up for the new year, let’s dive into the wild, competitive realm of healthcare entrepreneurship—a scene that eerily mirrors the high-stakes tension of Squid Game.

1) The Virtue of Patience and Persistence

In healthcare, if it’s worth doing, brace yourself—it’s going to be tougher than you think and take twice as long. First-time founders often underestimate the iron grip of industry regulations and the meticulous grind needed to scale up a business, let alone turn a profit. While a few companies hit the jackpot, they stand out against a backdrop of countless others that never make the spotlight. Success—measured by genuine patient impact and sustained profitability—is as elusive as it is rare. For those who just binged Season 2 of Squid Game, the analogy hits home.

2) What You Don’t Know Can Hurt You

If it seems too good to be true, it probably is. The healthcare sector often hides the real stories behind flashy successes. I recently got a congratulatory call about an angel investment I made years ago, and I had to bite my tongue. The truth? That “success” was now worth mere pennies. Much of what’s presented as achievement is just smoke and mirrors—beware of the glitter that isn’t gold.

3) The Normalization of Fraud

Some healthcare darlings are little more than get-rich-quick schemes masked by a veil of hype. The term “fraud” rarely surfaces, but the reality is alarming. Companies may inflate their valuations or present bookings as revenue, leading to capital raises based on falsified numbers. Those in the know—management, employees, even investors—often remain silent, as the truth threatens their interests. With a few signatures on nondisclosure agreements, the cycle continues… and yes, some are already gearing up for their next venture. Elizabeth Holmes’ name is just a whisper away. Am I joking? You decide.

4) Don’t Buy Into the “Expert” Hype

Stay vigilant against expert bias. Just because a big name or fancy firm is attached doesn’t guarantee credibility. It’s easy to get complacent and assume that a marquee company’s backing means everything is above board. If you don’t see it for yourself, don’t take it at face value. If you have even a hint of doubt, channel your inner Olivia Benson from Law and Order: SVU and investigate until you uncover the truth.

5) Winning Amidst Failure

Curiously, some founders pocket hefty sums even as their companies collapse. Thanks to subsequent funding rounds, these entrepreneurs can cash out early, distorting the venture model. While it’s intended to reward those who commit to their ideas, an early financial win can hinder long-term dedication, leaving the path to true success untraveled.

6) Clarity is Key: What Do You Actually Do?

If after numerous discussions you still can’t grasp what a company does, trust your instincts and steer clear. Companies that claim to be “all things to all people” typically lack focused expertise. In healthcare, depth—mastering a narrow focus—outperforms breadth every single time. Your app, device, AI solution, or clinic can’t tackle every problem in the industry simultaneously. It’s time to get real.

7) Innovation or Imitation?

Many so-called innovative startups are merely rehashing ideas from the past. Healthcare entrepreneurship seems to forget its history, recycling the same story with fresh packaging for a second (or third) time. Fans of Coming to America will remember Cleo McDowell’s clever marketing of “the better burger.”

8) The Dangers of the Arrogant Outsider

Healthcare is no walk in the park; it’s a complex web where experience counts. Entering the industry with an outsider’s arrogance often leads to costly mistakes. Those who promise to bring fresh perspectives often lack the nuance needed to navigate healthcare’s intricate landscape. Success requires humility and patience—qualities that are all too rare.

9) Passing the Buck

Big corporations often make reckless acquisitions that leave future leaders grappling with the fallout. Major media announcements don’t always translate into tangible successes, and when things go awry, there’s rarely accountability. It’s a cycle of blame until the next shiny acquisition distracts everyone from the failures of the past. Fun times!

10) Likeability Over Clarity

With every emerging trend (hey, AI!), a flood of new players enters the scene, making it difficult for buyers to sift through the noise and make informed choices. Often, personal relationships drive decisions more than the actual merits of the offerings. Those extravagant dinners, fancy wines, and Super Bowl tickets? Not such a bad investment after all, huh?

Ah, the tangled web of healthcare. Always claiming to be about the patients.

Or so they say…

As we look to 2025, will it break the cycle? More likely, it will escalate the high-stakes game already in play.

Cue the dramatic soundtrack!