If there's a market map, you're too late

Research firm CB Insights recently published a market map of?96 AI vendors in radiology. This cohort has raised over $2B in equity funding since 2021.

?During this period, nearly 200 AI-powered radiology and cardiovascular devices have received FDA clearance.

?This begs the question, are products in the market differentiated enough to carve out a niche for themselves??

This prompted a LInkedIn post . One observer noted that "if there's a market map, you're too late".

We've seen a lot of AI "too many, too like, too late" companies hunting for capital, and, like most startups, most will not survive. Shiney new object syndrome has become increasingly common and you shouldn't need to use ChatGPT to diagnose it.

As reported in Rock Health, last week was a tough one for digital health, with the news that pioneer Pear Therapeutics would be?closing up shop. Known as an early-mover in prescription?digital therapeutics?(PDT) innovation, Pear raised $250M in funding, received FDA authorization for three of its PDTs, and exited via SPAC in 2021—but now has filed for Chapter 11 bankruptcy. Pear pushed the limits of “what’s possible” for prescription digital therapeutics; as we celebrate their contributions to the ecosystem, we’re also chewing on what this outcome means for the future of PDT development and commercialization.?

Pear’s story emphasizes the significant challenges to “making a market” for a new solution type (R&D, market access, provider and patient education)—especially when that market remains limited by regulatory and reimbursement murkiness. As an innovation leader, Pear faced uphill battles on multiple fronts, a few of which are shared below. While we wait to see what becomes of Pear’s assets, we’ll be cheering for the next generation of startups that will pick up the mantle and continue the important work of developing new therapeutic modalities.?

Like they say about wide receivers, how to you create separation from the defender? What are some ways to create and enter a new product category?

1. New products can be existing products new to the business or never been done before products
2. As prices and customer expectations rise, category management separates distribution leaders from laggards.
3. Create a minimal viable category
4. Ready, shoot, aim
5. Don't scale too early or too late
6. Accelerate the process and create a sense of urgency
7. Focus on people, strategy, execution, and cash
8. Be prepared to spend more money
9. Understand the different market types
10. The pros and cons of entering a specific market type A new market is created if your product enables a large number of customers to do something they were unable to do before you came along. In a new market, customers and their preferences are unknown and direct competitors are non-existent. In the absence of?competition, product features take on less importance; identifying customers and making them believe in your vision are the name of the game. This is more time-consuming than if you were in an existing market, which puts extra emphasis on managing cash flow.
11. Build a religion, not a church
12. Build the buzz
13. Here's how Apple does it
14. How to create a minimal viable category

Creating separation begins with your first few moves after the ball is snapped on the scrimmage line and then how well you run the route.

Arlen Meyers, MD, MBA is the President and CEO of the Society of Physician Entrepreneurs