This accurately describes the situation. There is a mismatch between ideas and the capital to fund their development. In health tech, AI is improving the situation for some solutions. It is now possible to bootstrap product development to first revenue to demonstrate viability. If successful, entrepreneurs may be in a situation where they can decide whether or not to take capital before proving they can scale.
Thanks, Gary. Fully agree on AI lowering activation energy. It’s a big reason why a different model may be possible now. I'd note that bootstrapping still assumes an entrepreneur willing to take it all on; a lot of what I'm focused on never gets that far
Capital allocation is a serious barrier to adoption of innovation. I think the other is the systemic misalignment of incentives.
For example - Pharma don’t systematically invest in patient training or adherence management tools because if a patient fails on therapy they will probably be escalated to a more expensive therapy.
Hard not to become cynical over the years to be honest.
Thanks, Chris. The dynamics and misalignment you’re describing are real; as you know, we saw them firsthand at Propeller! I’m cautiously optimistic those challenges are downstream of something more fundamental: a need for more appropriate infrastructure to build these kinds of products in the first place
This accurately describes the situation. There is a mismatch between ideas and the capital to fund their development. In health tech, AI is improving the situation for some solutions. It is now possible to bootstrap product development to first revenue to demonstrate viability. If successful, entrepreneurs may be in a situation where they can decide whether or not to take capital before proving they can scale.
Thanks, Gary. Fully agree on AI lowering activation energy. It’s a big reason why a different model may be possible now. I'd note that bootstrapping still assumes an entrepreneur willing to take it all on; a lot of what I'm focused on never gets that far
Capital allocation is a serious barrier to adoption of innovation. I think the other is the systemic misalignment of incentives.
For example - Pharma don’t systematically invest in patient training or adherence management tools because if a patient fails on therapy they will probably be escalated to a more expensive therapy.
Hard not to become cynical over the years to be honest.
Thanks, Chris. The dynamics and misalignment you’re describing are real; as you know, we saw them firsthand at Propeller! I’m cautiously optimistic those challenges are downstream of something more fundamental: a need for more appropriate infrastructure to build these kinds of products in the first place