(2021-01-10) Why I Worry About Venturebacked Mental Health Addiction Startups

Hunter Walk: Why I Worry About Venture-Backed Mental Health & Addiction Startups: what happens to the clients of the ones which fail?

If a normal small business must optimize for unit economics and profitability early in its lifecycle, a venture-backed business seeks product-market fit in a big industry and then trades nearterm profit-taking for long-term marketshare, with the idea that profits can be extracted later.

companies which take any outside capital implicitly and explicitly incorporate the needs and expectations of that capital into their business planning

This post is an open question, not a conclusion

entrepreneurs in this area should have their own version of the Hippocratic Oath. What I’d ask the investors in these companies is that they share the same values. Push for responsible growth and make sure patients are well-served.