At Tau Ventures, he invests in AI in digital health and AI in enterprise, and has written extensively on both topics. This article is a little different. Seeing is believing, and in this article he tries to tell the story with 10 photos. This adds in many ways to the story of many previous articles, especially the one below.
1) Healthcare AI — Where are we?
2) Accelerating medical innovation
3) What is driving change in healthcare? Trends, instigators, and the future
Figure 1
In 1980, the United States was still on par with other developed countries when it came to health care spending. Since then, we have increased this spending much faster than our peers. In fact, our spending in 2021 was effectively double the average of the Organization for Economic Co-operation and Development (OECD), a group of mostly high-income countries. Is it because of poor eating habits such as an increase in cheap and processed foods? Is it because it’s too stressful? Is it because the amount of exercise has decreased? Is it because of systemic inconsistencies that make us pay more and more for less and less care? There are many explanations, but the truth is that our health care is becoming increasingly unsustainable. It has become.
Figure 2
Obesity is the canary in the coal mine, given that it causes or worsens many other health problems. And it is truly a national emergency for the United States. Other developed countries are facing similar spikes, although not at nearly the same level. The biggest new challenge is undoubtedly developing countries. As much of the world moves from scarcity to abundance, obesity rates have skyrocketed within a generation.
Figure 3
In many ways, this diagram summarizes the previous two. We’re basically spending more on health care than ever before, and we’re not getting better results. In fact, the United States was already seeing a decline in life expectancy before the coronavirus pandemic hit. What are we doing wrong?
Figure 4
The traditional view of healthcare is the 4Ps: patient, provider, payer, and pharmaceutical. Many would add policy makers as number five. Understanding the interactions of these various stakeholders is key to deciphering the challenges and opportunities in healthcare. As models and metrics evolve, so do business models. Fee-for-service is being replaced by down payments, which are being replaced by value-based care. Big Tech is increasingly moving into healthcare, and Big Health is responding by buying/building/partnering with digital health. With more data, more computing power, and more and more needs, startups that are increasingly leveraging AI are thriving.
Figure 5
A major factor that facilitates the growth of healthcare startups is the regulatory framework. Not surprisingly, radiology leads the pack. Image processing is at its core, and understanding the story that images tell is something that software can only get better and better at. But other areas of healthcare are also growing, and at Tau Ventures we have a particular interest in this next wave.
Figure 6
Pharmaceutical manufacturing has historically been a very expensive and time-consuming process. But software that helps with analysis and development is a big part of making the world a little bit flatter. In 2023, more new treatments will be approved than ever before. Their more moderate sales suggest their business model is changing a bit. Perhaps companies don’t necessarily need a blockbuster product, but they can actually make a good profit by producing and selling drugs more cheaply. Perhaps that will bring us closer to truly personalized medicine. Perhaps these are the fruits of our garage moments, meaning it is possible to build successful life sciences companies with fewer resources.
Figure 7
Health tech funding has been steadily increasing, in fact growing at a faster pace than the venture capital average. The years of COVID-19 have seen strong growth in many industries, followed by sharp declines. But 2023 essentially ends up being a continuation of 2019, which was a full year before COVID-19, and this may be an indication of what’s to come. If interest rates fall as expected in 2024, it will be a boon for startup activity.
Figure 8
The previous image shows more small transactions, many of which are in the early stages. When late-stage companies have relatively less capital, there will always be more pressure to integrate. At Tau Ventures, we see a significant increase in M&A in 2024 before IPOs pick up.
Figure 9
Gen AI continues to be the area of greatest concentration for both entrepreneurs and investors.
The fundamental innovation is the ability to transform unstructured data into structured data in a more scalable way. In “Where Generative AI Meets Healthcare: Updating The Healthcare AI Landscape,” the new capabilities being applied to healthcare are astonishing and are following or perhaps even surpassing Moore’s Law in terms of evolution. It seems there are. From text correction to data composition, image enhancement to efficient transcription, all tasks are now easier than ever.
Figure 10
You may be wondering if Generation AI has reached the height of its inflated expectations. Or maybe you look at public health insurance and decide that conventional medicine is currently in the trough of disillusionment. But the point is that health care is a fundamental need for all of us, and our current system exacerbates this need. At the same time, all other macro factors, from funding to advances in AI, are pointing to ways to quickly build valuable companies. It is up to the entrepreneur to seize that day.
It was first published inindian era” and “data-driven investor” We are happy to syndicate it on other platforms as well. I’m a managing partner and co-founder. Tau Ventures He has spent 20 years in Silicon Valley working with corporations, in-house startups, and VC funds. These are intentionally short articles (we call them gl;dr, meaning they’re long enough and we read them) that focus on practical insights.look here For other such articles.If this article provided you with useful insights, please refer to the article and Tau Ventures’ LinkedIn pageThank you for supporting our work. All opinions expressed here are those of the author.
