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For the 32 million individuals with food allergies in the United States, more research into symptoms, causes, and treatments has long been needed, but historically lacking in funding.
The National Institutes of Health (NIH), which oversees disease research, has a total annual budget of $120 per capita, and only $0.19 per person is spent on food allergy research. Considering how many Americans, both adults and children, suffer from food allergies, this is an incredibly low rate.
By 2021, total venture capital investment in the digital health sphere will peak at $29.1 billion. Investments have increased following the pandemic, with investors showing strong interest in health technology, particularly telemedicine. Fortunately for those with food allergies, the food allergy industry has benefited from this influx of funding.
Recent advances in health technology
In the past, there have been repeated pushes toward telemedicine due to concerns over privacy and quality of care. However, the global lockdown has forced more Americans to use telehealth, after many patients, doctors and hospitals first took advantage of the benefits — and 88% of Americans want to stay for non-urgent appointments.
Customer needs have spurred new partnerships between healthcare providers and technology companies. And finally, there was a technology stack for digital health – no need for companies to keep reinventing the wheel, which many early players in the space had to struggle with.
Food allergy technology innovators now have access to third-party customizable tools for electronic health records, clinical support, billing and prescribing. Currently, new health tech, pharma or biotech companies work with at least five partners during product launch, greatly speeding up the idea-to-market timeline. Collaborations like these have made health tech startups cheaper and more accessible than ever before.
All this flood of capital and interest has allowed the growth of established companies in the health technology space and many new startups – especially in the area of ​​food allergies.
Increase in food allergy forums
With 11% of adults and 8% of children in the US suffering from food allergies, using health technology to manage their allergies is a new and safe exciting opportunity.
Food allergies affect people’s daily experiences, and their quality of life is greatly affected. And it’s not just everyday, it’s also recreational. Research shows that 42% of families with food allergies limit family vacations, and 90% limit vacations due to concerns about food safety in America. However, with recent increases in investment, more people can use new technology to manage their allergies.
Funding has been able to support various digital food allergy innovations. Portable allergy sensors such as allergy amulets can help alleviate fears of hidden ingredients when eating out. It detects when certain food allergens are present, allowing people with food allergies to be more confident about what is and isn’t in the food. This gives many people with food allergies a new freedom to eat that they never had before.
Some companies focus on children’s allergies. For example, Super Awesome Care, a virtual clinic for children with food allergies. Within the forum, parents have access to a dedicated care team comprised of pediatric allergists, nutritionists and behavioral therapists, as well as customized education and support for other food allergy families.
Additionally, in 2020, the first venture capital firm dedicated to developing treatments, diagnostics and products for food allergy sufferers was established. AllerFund shows how far the food allergy community has come and how the health technology ‘gold rush’ has benefited the food allergy sector.
The future of health technology
Although investment in health technology is slowing, down 36% from the previous quarter, the decline is being seen across many industries, not just healthcare. There was a call for investors to support innovation during the pandemic, and now that pandemic concerns are beginning to subside, so are contributions. Additionally, recent economic conditions have caused investors to pull back from the market.
Recently, many questions have been raised about the delay in investments and how this will affect new and established health tech companies, including food allergy technology platforms. Companies with product-market fit are more likely to find a receptive financing environment. For those who haven’t, tough times may lie ahead.
Investors are more gun-shy these days and may need a leap of faith, especially in the early stages. To survive and thrive in this new climate, digital health companies must focus on their customers and how to acquire and retain them. One of the best ways to do this is to increase customer satisfaction and provide a superior user experience.
It’s not all doom and gloom as new food allergy start-ups still have the opportunity to get interest and funding from giants like Johnson & Johnson. The company recently offered grants to innovative startups in its Food Allergy Prevention Rapid Fire Challenge. Winners of this competition receive $150,000 in funding and mentorship.
Although the health technology industry is currently experiencing a decline in funding, the current climate will not last forever. The global digital health market is expected to grow at a compound annual growth rate of nearly 25% from 2019 to 2025. The world has finally discovered the life-changing benefits of digital health and the allergy health tech train continues to roll forward.
With digital food allergy solutions finally catching the eye of investors and their vast potential customers, it’s clear that the innovations will keep coming.
About the author
Rania Nasis, MD, MBA is the founder and CEO of Super Awesome Care, a tech-enabled healthcare platform for children with food allergies and their families. As a physician entrepreneur and digital health expert, her mission is to bring the best food allergy care to all families, when and where they need it.
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