There’s good news and bad news for digital health care startups,according to a report by consulting giant Accenture. The bad newsis that half of them will fail within their first two years ofexistence. The good news is that even startups that don't make itcan help develop the skills of talented entrepreneurs and workers,whose ideas can be of use to bigger companies.

The report estimated that $2.5 billion will be invested inhealth technology start-ups during thenext two years across the following segments:

  • engagement (25 percent),

  • treatment (25 percent),

  • diagnosis (21 percent)

  • and infrastructure (29 percent).

In the traditionally conservative realm of healthcare, many big players are starting to recognize thatacquiring startups is a good way to injecttheir companies with some much-needed innovative spirit.

“Many digital start-ups that are dying or in danger of failurehave developed solutions that can help traditional andnon-traditional health care companies achieve their goals,” saidKaveh Safavi, managing director for Accenture’s global health carebusiness.

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