This month, The New York Times teamed up with the research firm CB Insights to select 50 startup businesses that they think will eventually be valued at $1 billion or more. Six of the startups, which they refer to as "unicorns," are part of the health care industry.
A report from Becker's Healthcare says that the two firms chose the startups based on "a metric that combines a company's financial health, the amount of traction it has and the strength of its market." It also said that about half of the startups that the firms named on their "unicorn" list from 2015 are now worth $1 billion or more.
The six health care startups on 2019's list include:
1. Alto Pharmacy (pharmacy)
2. Benchling (healthcare)
3. KRY (healthcare)
4. Medbanks Network Technology (healthcare)
5. Miaoshou Doctor (pharmacy)
6. Practo Technologies (healthcare)
It's no surprise that six of the startups on the 2019 list of "unicorns" involve health care. As the baby boomer population in the U.S. ages and developments in the medical and technology worlds continue to advance, the health care industry is expected to keep booming.
Of course, building a startup within the healthcare industry, and finding success, is no easy feat, especially with the complicated laws and regulations that govern the industry. For that reason, it's important for entrepreneurs to consult an experienced health care attorney to make sure that all business ventures are in compliance with state and federal law, including anti-kickback laws.
Far too many health care startups skip this step and end up failing after having to fend off fraud allegations and other legal complications. This can be avoided with careful planning and the advice of an expert.