Top medical device startups 2023 you need to know about

In 2022, total funding for digital health startups in the U.S. amounted to $15.3 billion across 572 deals [1], just over half of the $29.3 billion in 2021 [2]. While companies are actively entering the post-COVID period, it was the pandemic that catalyzed innovation, investment, and transformation in digital health throughout 2020 and 2021. Therefore, the drop in startup funding at the beginning of this year is quite evident, making upcoming projects even more vulnerable in the competing healthcare market.

We’ve already made the top medical startups of 2022: what has changed since then, and who will take the rank this year?

Digital solutions to support behavioral health, pharma-centric technologies, and clinician workflow optimization projects are considered some of the most in-demand areas of online medicine this year [3], attracting the full attention of investors. Moreover, hospital systems for improving clinical workflows and reducing HCP pain points during their medical practice claim the top spot in terms of demand. Indeed, according to a Rock Health study, 45% of healthcare organizations reported accelerating investments in software in 2022 to streamline daily processes [4]. Having learned the pandemic lesson and realized the importance of efficient physician workflow and remote care, startups in 2023  will continue to focus on products that support HCPs' decision-making and facilitate patient-doctor communication.

The MDPI study revealed several factors that influence the company's success in digital medicine, with the tech skills of developers proving to be the most important [5]. However, we believe that building effective marketing strategies for launching and promoting a product following a thorough analysis of the market and possibilities is no less essential than developers' expertise and the tried-and-true tech stacks used. Well-conducted research will allow you to determine whether there is a real need for a product within the market and what its potential to take off.

Here are five startups that have proven to be promising for healthcare. By embracing the importance of marketing, finding consumer needs, and attracting rounds of investment, they were able to skyrocket. Maybe one of them can inspire you to create a future-proof product that fills the void of need in the healthcare marketplace.

Direction: Virtual healthcare 

Based in: Boston, Massachusetts

Folx Health seeks to expand access to healthcare for LGBT people. The project proved needed and eventually attracted $30 million in funding in October 2022 [7]. The company offers virtual doctor consultations as well as prescriptions for medications, including hormone replacement therapy and birth control.

Data from the largest-ever study of transgender and gender non-conforming people in the United States showed that 19% were denied medical care because of their gender identity [8]. At the same time, a Folx survey found that 71% of participants had previously avoided going to the doctor because they were afraid of being discriminated against [9].

Direction: Biometrics, medical device

Based in: California, United States 

Biotricity is a medtech company that develops solutions to help patients with chronic diseases.

"Diabetics have a glucometer. Cardiac patients [had] nothing," said Biotricity founder Waqaas Al-Siddiq [11]. That's how the idea of Biotricity - a biotech startup - came about. In 2018, Bioflux, a portable mobile cardiac telemetry (MCT) that collects heart data 24/7, was introduced [12]. Real-time data tracking allows the call center to monitor potential abnormalities. Today, more than 1,500 cardiologists use Bioflux, making it available to about 3 million patients.

Recently, the company released Bioheart [13] - a device with a connection to a  user’s smartphone - designed to monitor heart rhythm and thereby help monitor one's health more effectively.

Direction: Medical device

Based in: Brooklyn, New York, United States

Synchron is a bioelectronics company developing neuromodulation solutions for previously untreatable diseases of the nervous system, mainly Parkinson's disease, and epilepsy. The startup's journey began with the development of innovative treatments for paralysis and has grown to become one of the leaders in working with such a complex entity as the brain. It develops minimally invasive tech solutions in the field of neuromodulation, one of them being an endovascular brain-computer interface - Neuro EP. The technology can access any corner of the brain via blood vessels and thus allow people with limited or no physical ability to control the cursor with their minds [15].

Direction: AI, care assistance software, telemedicine

Based in: Peoria, Illinois, United States

According to the Agency for Healthcare Research and Quality, as many as 700,000 to 1 million people fall during their hospital stay each year [17]. VirtuSense has come up with the #1Fall Prevention Solution to reduce this number as much as possible. 

The VSTOne platform, based on artificial intelligence, uses sensors connected to the patient to help predict when he or she is going to get out of bed. For example, the VSTAlert tool detects a patient's intention to leave the bed 30-65 seconds before he or she gets up, immediately sending alerts to the hospital care staff in charge. According to VirtuSense, the accuracy of the "assistant" is 95%, while the reduction of falls is 75% [18].

The company also provides patients with a telemedicine platform that connects them to specialists.

Direction: AI, biotech, pharma

Based in: London, UK

BenevolentAI is a drug discovery company: one of those few startups that aim to discover a cure for complex diseases such as Parkinson's disease and motor neuron disease. 

The AI and ML solution helps scientists analyze copious amounts of data collected in one place and make a detailed map of the disease to find the best solution to cure it as quickly as possible. Also, based on AI tools, the company has identified a leading treatment method for COVID-19, which is now approved by the FDA [20].

Prove the importance of the idea, present possible ways to implement it, provide funding, demonstrate clinical safety for regulatory approval, and a bunch of other things a startup needs to do before… releasing the product. Given the significant need for digital medicine today, the speed of development is as important as the solution itself. Otherwise, you might get beaten by your competition. There is no potential room for error in the hyper-competitive world of medical devices. 

The first thing these startups did was recognize the real problem and the lack of a solution. Then comes the analysis of the market, competitors, opportunities, prospects, and the consumer. Only then comes the product development phase. From the first to the never-ending stage, the most important thing is a team whose members follow a common benchmark.

Rely on the technically and medically-savvy experts at Brandmed. We've been supporting startups for 8+ years in developing their ideas into full-fledged products. Let's accelerate the digitalization of medicine together! Shall we start? Just contact us.

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