Wearables have a credibility problem
Over 30% of Fitbit and Jawbone buyers stop wearing them within 6 months. Some of this is due to technical limitations (batteries don’t self charge yet) and some is due to bad design (Fitbit recalled its Force devices due to failing straps and blisters). But most user abandonment is due to expectation discrepancies.
Many buyers think a Fitbit will magically make them healthier. It’s like the Abdoer. You can buy one but it still takes a lot of effort to get a six pack.
Compare this with the introduction of other personal devices like the Palm Pilot and Blackberry. Thirty percent of buyers didn’t leave them in a drawer at home.
The Apple Watch can be a game changer for health and wellness
The iOS platform is entrenched and could grease mass adoption which would accelerate the market for useful apps that do meet user expectations. Also Apple is probably the only company besides Google with the design and financial resources to exploit sensor innovations that can improve health and wellness beyond counting steps and calories.
But health applications must extend beyond the Apple Watch
We recently invested in SpiroSano, a healthcare platform that helps doctors remotely monitor patients with respiratory conditions including Asthma and COPD (Chronic Bronchitis and Emphysema). SpiroSano stitches together lots of different wireless devices including spirometers, nebulizers, pulse oximeters, and pedometers to give doctors a clearer picture of patterns and triggers as patients go about their daily lives.
A big market opportunity
The cost to treat Asthma and COPD in the US alone cost $100 billion annually and affects more than 50 million Americans. According to the U.S. Centers for Disease Control, more than 75 percent of health care costs are due to chronic conditions such as Asthma and COPD and up to half of treatment dollars are wasteful spending.
Connecting devices can reduce hospital visits
SpiroSano cofounder Dr. Radu Iancu M.D. PhD observed that doctors don’t have access to important field data that is needed to assess respiratory conditions and to adjust treatment. For example, suppose Anna has COPD and is walking in the park when she has what seems to be a serious episode requiring hospitalization.
Using heart rate, blood oxygen saturation, and pulmonary function data transmitted wirelessly via Anna’s Apple Watch, wireless pulse oximeter, and wireless spirometer, her doctor can quickly determine that the episode is not an emergency situation and can be treated without a hospital visit using her nebulizer.
A better way to manage chronic conditions
SpiroSano’s technology consists of a dashboard for the physician to review historical and real-time data and a series of API’s that connect various wireless devices to a patient’s smartphone for transmission to the physician.
SpiroSano lets doctors prescribe “personalized disease management kits” consisting of devices and apps that allow for tracking and monitoring a patient’s respiratory conditions.
Getting noticed
The company was just selected by a judging panel that included Google Ventures, Baxter Ventures and Northwestern University, as a finalist (one of 6 early stage medical startups) for the Chicago HealthTech Summit Challenge. As part of the Summit SpiroSano has started a crowdfunding campaign on MedStartr. The Medstartr campaign will help fund their first clinical study launching in November that will establish whether the platform can improve outcomes for patients and efficiency for physicians and doctors.
Here’s a link to the Medstartr campaign.
The Bottom Line
Wearable tech and innovative sensor technology present exciting opportunities for improving healthcare delivery. We think that compelling platforms like the Apple Watch, in tandem with useful apps and third party device integrations will begin to empower healthcare workers to improve outcomes and reduce costs. Vertical specialization and cross-platform integration will be key to gaining adoption, meeting user expectations and delivering value.
Paul Allen is a Leader with Bizdom, founder of Tribe of Angels, and an entrepreneur and early stage business advisor and investor. Bizdom is a startup accelerator that trains, mentors and funds entrepreneurs to launch innovative startups in Detroit and Cleveland. During his career Paul has helped companies including Intel, Adobe and Motorola to develop and launch new products and has helped startups raise in excess of $100M in angel and venture capital. Prior roles have included senior positions within the gaming, edtech, payments, design, sports, and healthcare sectors. He holds undergraduate and graduate degrees from UCLA. Follow Paul on Twitter @iampaulallen