Most health startups fail. Why?

The attrition rate for startups is high. That’s especially true for fledgling health-adjacent companies, according to the folks over at MedTech Innovator, a global competition and accelerator in this sector. They outline 10 reasons in a new First Opinion for STAT.

Among the reasons: Picking the wrong CEO, or staying in stealth mode too long — a trend often seen among biotechs in particular.

Direct-to-consumer models also end up complicating matters for startups. Most consumers, outside of a smattering of early adopters, will be reticent to pay for anything out-of-pocket — so consumer health startups switch directions and opt for the regulated route. But many are invariably too late — and run out of cash before insurers get involved.