About Author: Senu Sam, Founder & CEO, Mykare Health is a passionate entrepreneur, startup enthusiast and professional with extensive marketing and management expertise in healthcare gained through working with some of the world’s largest healthcare companies. In a career spanning 12 years, Senu has responded to the day-to-day demands of his job with an entrepreneurial approach. He has managed large teams, led new initiatives, owned and turned around the challenges of the organizations he has been a part of.
There are numerous parallels between the financial services and healthcare sectors. Both have enduring conventional institutions, with many of the oldest banks, insurance firms, and healthcare systems existing for over a century. The intricacy of the systems is another issue. Sending a wire transfer or comprehending personal finances may be as difficult as attempting to grasp a medical bill or transferring information from one provider to another. In terms of customer satisfaction, consumers don’t generally appear to like going to the bank or the doctor. For obvious reasons, client satisfaction is poor in both businesses.
Healthcare and financial services are both crucial yet complicated industries. Each has many rules and regulations, mysterious business practices, and long-standing incumbents with competitive advantages. It was uncertain if each region would develop as a promising one for companies in the early days of venture capital. They did, however, appear.
Fintech is undoubtedly more developed now. Venture capitalists invested $132 billion in the sector in 2022, funding 5,000 start-ups. Around the same amount as fintech start-ups raised four years ago in 2018, healthtech businesses raised $57B across 2,900 companies in 2022.
The similarities between the current state of healthcare and the state of fintech three to five years ago are startling. For the first time, venture capital in the fields of healthtech and fintech grew by more than 50% from one year to the next in 2022 and 2018, respectively. And if the healthtech ecosystem follows the fintech model, the ramifications for where it will go are fascinating.
“The upcoming three to five years should be exciting if the history of fintech is any indication of the future of healthtech”