More healthcare-technology start-ups are finding themselves in a negative spotlight after following Mark Zuckerberg's "move fast and break things" approach, according to CNBC.
In an industry that requires added trust between patients, providers, investors and companies, following Mr. Zuckerberg's advice can be destructive. Take for example birth control medication provider Nurx, which raised $41 million in funding. Earlier this month the company was found to be storing pills in a shoe organizer hanging in a closet, CNBC reports.
UBiome has also been in the hot seat after being raided by the FBI last week for its alleged fraudulent billing practices. The company, which developed SmartGut, raised more than $100 million in venture funding.
Investors are betting big on health-tech companies, funding more than $3.5 trillion. However, for those looking to invest it is important to look past the technology.
"For one, they should pay as much attention to the chief medical officer as the chief revenue officer," CNBC reports.
Other companies like Virta Health and Omada Health, which are focused on diabetes, are moving slowly when it comes to going public. Instead of moving fast and breaking things, the companies are developing evidence to support their medical claims.
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