doctorendgame
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My best friend works for and is part owner of a dental startup that is about to get acquired. He and his boss are looking for their next venture capital with their profits. I convinced them to look into a medical specialty that I have a lot of exposure to innovating, courtesy of my mentor, who is a leader in healthcare innovations and has taught me a lot about said topic. I won't say which specialty but my mentor and I ensured a viable business model was in place to ensure solid revenue streams when the product is developed. My mentor also connected them with the necessary experts to navigate regulatory bodies.
Having a solid business model is needed for a medical product to take off and have its intended impact. Some of you may know about Endeavor RX, the FDA-approved video game for treating ADHD. The problem was that game didn't have a viable business model. There was no financial incentive for providers to prescribe it, so it had a hard time generating solid revenue. By 2023, they abandoned the RX model and created the OTC version but even that didn't create solid revenue streams. Even though Endeavor was a breakthrough in medical therapeutics, the lack of a viable business model caused it to fail commercially. The startup that created Endeavor RX was acquired for a mere fraction of its valuation because it wasn't generating solid revenue.
By contrast, my mentor and the people he connected with would guide them to getting reimbursement with insurance companies that are more open to reimbursing technological use in medicine, so providers have a financial incentive to use our product as it'll generate revenue for their practice. It also saves the insurance company money because the traditional method for the issue we're trying to solve costs insurance companies a lot of money, ensuring everyone benefits so insurance companies have an incentive to reimburse our product. This was where Endeavor RX fell short.
Our startup also has to meet an unmet need with a very large market, which I was in charge of researching and I was also in charge of researching previous startups that failed in addressing this particular need and why they failed to ensure we don't repeat their mistakes.
I'll be getting part ownership for my contributions. My part is just laying out the foundation, so my work will be done by the time I (hopefully) matriculate.
Should I send an update letter for this? My friend's startup won't be acquired for at least 6 months (these things take a while to close). Our startup won't start for at least another year. But the foundation for the product and its business model will be done in the next 6 months.
Having a solid business model is needed for a medical product to take off and have its intended impact. Some of you may know about Endeavor RX, the FDA-approved video game for treating ADHD. The problem was that game didn't have a viable business model. There was no financial incentive for providers to prescribe it, so it had a hard time generating solid revenue. By 2023, they abandoned the RX model and created the OTC version but even that didn't create solid revenue streams. Even though Endeavor was a breakthrough in medical therapeutics, the lack of a viable business model caused it to fail commercially. The startup that created Endeavor RX was acquired for a mere fraction of its valuation because it wasn't generating solid revenue.
By contrast, my mentor and the people he connected with would guide them to getting reimbursement with insurance companies that are more open to reimbursing technological use in medicine, so providers have a financial incentive to use our product as it'll generate revenue for their practice. It also saves the insurance company money because the traditional method for the issue we're trying to solve costs insurance companies a lot of money, ensuring everyone benefits so insurance companies have an incentive to reimburse our product. This was where Endeavor RX fell short.
Our startup also has to meet an unmet need with a very large market, which I was in charge of researching and I was also in charge of researching previous startups that failed in addressing this particular need and why they failed to ensure we don't repeat their mistakes.
I'll be getting part ownership for my contributions. My part is just laying out the foundation, so my work will be done by the time I (hopefully) matriculate.
Should I send an update letter for this? My friend's startup won't be acquired for at least 6 months (these things take a while to close). Our startup won't start for at least another year. But the foundation for the product and its business model will be done in the next 6 months.
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