Harvard Business Review October 30, 2017
Executive Summary
In most industries, disruption comes from startups. Yet almost all health care innovation funded since 2000 has been sustaining to the industry’s business model rather than disruptive. Our analysis of Pitchbook Data shows that more than $200 billion has been poured into health care venture capital, mostly in biotech, pharma, and devices where advances typically make health care more sophisticated — and expensive. Less than 1% of those investments have focused on helping consumers to play a more active role in managing their own health, an area ripe for disruptive approaches. This is now beginning to change. Seeing the potential to improve health with simple primary-care strategies, some of the biggest incumbent players are inviting new entrants focused...