industry spotlight

Telehealth

Discover the telehealth industry—where technology meets healthcare to transform patient care.

Bringing healthcare online

The telemedicine industry has all the chances to surpass traditional medicine. It’s picking up speed, driven by a lack of healthcare providers, tech advancements, and shifting customer preferences. More and more patients prefer telehealth services for their accessibility and savings in cost and time. Even amidst current market uncertainties, investors remain positive about pouring telehealth venture capital into disruptive companies.

Why it matters:

Investor optimism and the telehealth industry’s growth potential paint a promising future, offering many opportunities for startups:

  • RPM platforms
  • Niche specialization
  • AI-powered solutions
  • Medication management solutions

Between the lines:

Don’t forget about the challenges ahead. Prepare to fight for funding, customer trust, and regulatory compliance.

Our team has significant experience with telehealth startups and knows how to build successful businesses that draw investor interest

$3B+
Secured in funds
600+
Ventures advanced
80+
Industries explored

What we do:

We help secure necessary funding, assist with M&A options, and craft impeccable pitch decks and business plans.

Go deeper:

Explore our analysis of the telehealth market to learn about the latest trends, startup challenges, and key strategies for securing investment.

3x growth
The telehealth market size will triple by 2032.

 

38 times
Digital consultations are now 38 times more common.

Driven by tech advancements and rising patient demand for remote healthcare services
75%

US hospitals have adopted telemedicine.

4/10

Individuals have a smart wearable device.

34%

Healthcare organizations offer RPM.

VENTURE LANDSCAPE

In 2023, telehealth startups secured over $240M in funds

Major verticals where funds flow:

  • Chronic disease management
  • Mental health services
  • RPM
  • Medication management

Leading VCs in telehealth

Write to us to know more

Challenges of telehealth startups

Prepare to tackle the following issues.

Raising funds:

Carving out a part of VC in telehealth is not an easy feat. The industry is promising yet new, which is why investors may show more hesitation than interest.

Why it matters

Limited telehealth venture capital:

  • Restricts growth
  • Hinders marketing and onboarding efforts
  • Weakens the ability to compete

What it takes:

  • Build a solid business plan with clear metrics: showcase startup’s scalability and high ROI potential
  • Demonstrate a clear product-market fit
  • Prepare a pitch deck that tells a compelling investment story

Complying with regulations:

The continuous telehealth industry growth affects the regulatory landscape. Regulations typically vary from state to state and from country to country.

Why it matters

Confusing regulations can lead to:

  • Compliance issues
  • Limited market reach
  • Hindered innovation

What it takes:

  • Track the changes in the regulations
  • Seek legal counseling
  • Partner with other industry players to advocate for consistent regulations
  • Be flexible to adjust your product/service swiftly if needed

Earning patient trust:

People are not that open to changes, especially in fields like medicine. That’s why many can be hesitant to adopt telehealth, fearing it lacks the personal touch found in traditional doctor visits.

Why it matters:

Low patient adoption rates can:

  • Hinder growth
  • Damage reputation

What it takes:

  • Ensure user-friendly interface
  • Onboard skilled healthcare providers who communicate well online
  • Offer clear benefits to patients

Tech and data security concerns:

Patients expect a seamless user experience and the security of their personal information. Ensuring this should be one of the top priorities for telemedicine startups.

Why it matters:

Data breaches and technical problems can:

  • Damage reputation
  • Impose legal consequences
  • Lead to negative feedback

What it takes:

  • Leverage strong technology that’s always available and works well
  • Leverage robust encryption protocols and adhere to privacy standards like HIPAA to keep patient information safe
  • Teach your team how to handle data safety

FAQs

How to start a telehealth business?

To launch a telehealth startup, you need to identify your niche and value proposition, research regulations and licensing, develop a business plan, choose a telehealth platform, build your team, develop a marketing strategy, focus on patient privacy and security, etc.

What are the largest telehealth companies?

Doximity, Hims & Hers Health, GoodRx, Teladoc Health, LifeStance Health Group are the largest telehealth companies based on their market cap.

How attractive is the industry to potential telehealth investors?

The telehealth industry attracts investors due to its growth potential, cost-saving benefits, technological innovations, and positive patient outcomes.

If you are a telehealth startup, how easy is it to raise funding today?

A fundraising journey can be bumpy. Although there is a significant investor interest, it’s not a guaranteed slam dunk.

How long does it take to create a pitch deck and financial model for a telemedicine startup?

On average, we handle documentation in 2-3 weeks. But sometimes it might take around a month. Feel free to ask for more information.

What are the key mistakes telehealth startups make in their pitch decks?

Many pitch decks don’t tell a compelling story to attract investors. They miss out on explaining why they’ve chosen their market and the timing for it. Also, not showing who their competitors are can make investors hesitant if founders truly know how to stand out and bring profit.

How competitive is the telehealth market?

It’s a highly competitive market with traditional healthcare providers, tech giants like Amazon and Apple entering the scene, and a pool of startups.

What services do you provide for investors looking to invest or already investing in telehealth?

We help investment funds evaluate telehealth projects through comprehensive due diligence, ensuring they back profitable initiatives. Additionally, we roll out full-fledged fundraising support for our partner fund’s associated companies.

Do you provide telehealth M&A support?

Yes, we do! We provide telehealth M&A assistance by searching for promising deals, evaluating them, and guaranteeing successful partnerships after the deal is finished.

Do you make intros to telehealth VCs?

Our experts connect startups with VCs, evaluating team structure, product, and capital needs. We then facilitate partnerships with telehealth VCs, supporting productive relationships during and after negotiations.

Do you have available data or research to purchase on the telehealth market?

We provide market intelligence for the telehealth industry, featuring industry reports, competitor assessments, and market research. Using data from trusted sources, we help you understand the landscape, its complexities, and competitive dynamics.

Which growth stage of companies have you worked with in the past?

We provide growth and fundraising support for telehealth ventures, from Pre-Seed through Series C and beyond.

Building a solution in the telehealth industry? Get in touch with us

Fuel your next stage of growth with Waveup—your one-stop shop for fundraising support, outsourced M&A advisory, growth strategy consulting, and presentation design. Leave your email, and let’s chat!

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