Why HealthTech Startup Raises $1m Pre-Seed Funding?


Investing in HealthTech startups is the new trend, and some recent investments in the industry have raised the bar. If you are searching for answers to whether you should invest in a HealthTech startup or not, this article features all the relevant information.

Before starting, you should know about Pre-seed funding and how it works? Pre-seed funding is a term used to describe the early funding round wherein investors offer a startup business with up to $2 Million capital to develop its first product in return for equity. The HealthTech startup that focuses on pharmaceutical solutions has recently raised one-million-dollar pre-seed funding. The news came after the HealthTech startup gave insights about their upcoming patient medication records management and digital procurement platform.

After this update, patients will be able to access neighborhood pharmacies and proprietary medicine vendors to receive authentic medicines at less rate. This new update was the biggest reason why the HealthTech startup raised one-million-dollar pre-seed funding, and much more is awaiting them in the upcoming time. The health-tech startup will connect hundreds of medicine suppliers with those who need medicine. Below are the reasons you should invest in a HealthTech startup despite other available investment options.

Why Invest in Healthtech Startups?

If you are looking for ways to invest in a HealthTech startup, you should do it right now, as this is the best time to make the most out of your investment. The future of health-tech startups is very bright as most startups are based on using both biology and technology for the betterment of humankind.

With advancements in this industry, professionals will be able to cure diseases, prevent, and manage them by promoting healthy behaviors among the general public. These practices will increase your life span by enhancing your overall health.

Raising capital is challenging for any startup, especially when human lives are involved in it, as everything will be wasted due to a small mistake. According to a recent analysis by Transparency market research, the global health tech industry will be worth over five hundred billion dollars by 2025.

Things to Consider Before Investing in Healthtech Startups

Investing in the right industry is crucial to making your investment worth it. Before investing in HealthTech startups, you can consider the items below to make money from your startup.


The medical industry didn’t adopt the technology as it should have been, making it difficult for everyone related to the industry. The annual report of recent year showed that 84% of health tech companies don’t want to digitalize their system.

This survey contains some of the most significant medical companies that no one imagined acting like this. Some give reasons that adopting the latest technology will make things complicated, while others present their large scale as a hurdle.


Healthtech startups have to go through a lot in terms of regulations before providing services to the general public. Strict federal medical laws prohibit startups from using patients’ personal health information for any other purpose than their treatment.

You also need a separate certificate if your HealthTech startup features software to manage patients’ health and perform remote diagnoses. Although these medical regulations may vary from country to country, they are strict in most countries. If you want risk-free investment, invest in a country with relaxed medical regulations.

Understand how things work

Instead of investing blindly based on what you hear on the news, you should learn about how the market works and all the existing HealthTech startups. These startups will give you a hard time if you don’t work accordingly from day one.

How to Start Your HealthTech Startup?

If you want to launch your HealthTech startup and revolutionize the medical world, you must work hard and look for many things. Below is the approach you can take to ensure that your startup will get due recognition.

Study the market

Whether you want mental health app development solutions or any other health tech startup, thorough market research is crucial. Before you start working on your idea, dedicate all your efforts to studying the market and learning about the behavior of your target audience.

This may sound like a lot of hard work, but its benefits make it worth all the effort. After studying the market, you will be able to make all the necessary adjustments to your product and release it afterward.

This market study goes beyond the boundaries as looking at other startups with similar goals is beneficial. You can learn from their mistakes and avoid the same mistakes to ensure that your startup becomes successful.

Get a medical advisory board

Knowing the technology is not enough to launch your HealthTech startup. Hire a separate medical advisory board to understand medical science and its niches better.

The board will give your ideas about overcoming roadblocks and how to better up your business model. If you have got some money, hire experts who have a strong standing in the medical field as it will put a good impression on investors. Discuss all medical subject matters with experts and act accordingly.

Outline the development

Now that you have got everything you need, it is time to start the development of your solution. Hire medical app development company and share the outline of the development process with them. Focus on the design, architecture, and security of your solution.

Calculate your budget and adjust your plan

When creating a budget for your HealthTech startup, experts suggest that you should have enough money in the bag to support your startup for five years. Healthtech startups can take a lot of time to launch, and you don’t want to end your resources before that.

Map out the development costs according to your requirements and include them in your budget. Although development is only a small portion of the launch, it can cost you more than you can imagine. The main reason why costs go skyrocket is because of adding new features.

Create an MVP

A minimum viable product is the best way to put your idea to the ultimate test before going forward with online app development. You can test all the core features you want to add to your final product and the revenue model using MVP.

MVP is a cheap alternative to other testing methods as you share the solution with a small group of people, and they share their feedback after using it. MVP doesn’t need to look good, but it should contain bare-bone functionality for better testing.

Choose the revenue model

No matter where you go, money is everywhere, which goes with HealthTech startups. As you know it would help if you chose a revenue model for your startup. The revenue model will be based on the niche you select for your startup. The one-time payment revenue model is best for patient monitoring solutions. Below are some other pricing models that you can consider.

  • Freemium: Users have to pay for some features while some are available for free.
  • Tiered pricing: Multiple fixed price options are available based on features.
  • Per-user pricing: Price depends on how many active users use the account.
  • Pay-as-you-go pricing: Price depends on the usage.
  • Flat rate pricing: Users need to pay a fixed amount after a given time.

Comply with regulations

Learn about all the local and international medical laws and comply with them to avoid any issues later. Assess all the risks because risks increase as you have more patient information. Your business will be finished if you fail to comply with any regulations.

To get rid of any external threats, use advanced safety measures like multi-factor authentication, automatic log-off, data encryption, and threat detection tools. Hire a technical company to deal with such issues and run a technical audit of your company from time to time.

Promote the startup

Promotion should start as soon as the launch of MVP goes successful because the public likes your product. Showcase your targeted audience what your solution will change in their life and what problems it will solve.

You may need to go the extra mile as the marketing of startups is not as easy as it looks. Get help from scientific experts in the field and back your proof with their research. Use the trial policy to increase the credibility of your startup.

Release the full product

Now that you have developed your app and promoted it, it is time to launch it in the market and see how things work out. Your journey hasn’t ended yet as you have to constantly work on making the product good and removing any bugs based on public reviews.


HealthTech startups get significant investments because investors see potential in them, and they solve a problem. Work on your startup according to the industry standards and launch it after promoting it in the market. Don’t ignore even the smallest of the details, as they sometimes impact the big picture.

Previous article5 Key Factors to Consider Before Buying a Home
Next articleHow to Choose and Evaluate a Business Idea
We aim to assist startups and established industries on the software side of things. We are supporting startups to come out with products when they make innovative ideas for us. We implement high technology to improve productivity for businesses. We build dashboard/connector/system integration which comes out with significant data from your database. Come to us with your innovative ideas, we will make it appear.