From Understanding Local Health Market Problems to Building Nuanced Tech Solutions: An Interview With Eugene Kandel
Eugene Kandel, Chair of the Tel Aviv Stock Exchange and RISE Israel, recently sat down with LiveLong.Life to discuss the significance of health tech in the Israeli startup ecosystem. Through his work, Eugene has seen firsthand the potential and obstacles facing health tech innovators expanding across the international markets.
We're thrilled to share our conversation with Eugene on the transformative role health tech can play and how LLL aims to help Israeli companies bring innovative solutions to the world stage.
Can you tell us about your background and how you got involved with LiveLong.Life?
Before joining LiveLong.Life, I had the opportunity to lead Startup Nation Central, an organization dedicated to showcasing Israeli innovation as solutions to global challenges. About a year and a half ago, I was introduced to Elena, the visionary founder of LiveLong.Life, through a mutual friend. After connecting her with several companies in the education and health sectors, Elena invited me to join the LLL advisory board. Her mission deeply resonates with me, and I’m excited to come on board and support such impactful work.
What was Startup Nation Central's role in the Israeli Tech ecosystem?
We serve as a bridge, linking global challenges with Israeli tech solutions.
Over eight years, we connected more than 350 large organizations from around the world with Israeli innovators.
We also managed a free online database called ‘Startup Nation Finder,’ cataloging Israeli companies, investors, accelerators, incubators, and academic research, which tens of thousands of users accessed each month to connect within the ecosystem. What set us apart was our focus on understanding and representing the challenges faced by governments, large corporations, and nonprofits worldwide—rather than directly promoting Israeli companies.
How significant is health tech in the Israeli tech landscape?
Health tech is a substantial part of the Israeli tech scene.
Between a quarter and a third of all tech companies in Israel are in the health tech, biotech, digital health, or medical devices space.
However, relatively few of these companies scale significantly, largely due to the unique challenges of entering global markets. Expanding internationally in the healthcare sector can be particularly complex for Israeli companies, which is why organizations like LiveLong.Life are so essential. They provide the guidance and connections needed to overcome these barriers, helping innovative solutions reach a broader audience.
What are the main challenges for Israeli health tech companies entering global markets?
There are several key challenges. First, the physical distance from target markets can make it difficult to fully understand local needs and regulatory requirements. Second, healthcare systems vary widely across countries, so a solution that works well in one market may not be easily transferable to another. This differs from sectors like cybersecurity, where solutions are often more universally applicable. Third, achieving product-market fit in healthcare is especially challenging due to the complexity and variation within different healthcare systems, coupled with strict regulatory demands. As a result, many companies risk developing innovative solutions for issues that may not truly exist or for which there is limited market demand.
How does the complexity of the U.S. healthcare system impact the adoption of new technologies?
The barriers are substantial. Each hospital or medical system has unique complexities, layered with a host of regulations, making it difficult to implement solutions consistently across organizations. Introducing new technology often means displacing existing roles or outsourced services, which can lead to resistance. Those whose jobs may be impacted sometimes push back on new technologies, citing concerns over patient safety or increased risks.
The structure of the healthcare system also complicates efforts to introduce cost-saving innovations. For example, high malpractice insurance costs and established income expectations for doctors are deeply rooted and challenging to alter. Additionally, competition among providers in the United States has led to an oversupply of medical equipment and technology, which can hinder the adoption of new, potentially more efficient solutions.
Successfully overcoming these challenges requires a deep understanding of the system, the nuances of each organization, and the ability to identify strong internal champions committed to driving change.
What advice would you give to Israeli companies looking to enter the U.S. healthcare market?
In my experience, Israeli companies should concentrate on a small set of well-defined, high-impact challenges.
It’s vital to identify champions within the U.S. healthcare system who are not only supportive but also positioned to implement your solutions.
These advocates can be instrumental in navigating the system, helping to secure initial pilots or purchasing agreements. Companies need to be both precise and adaptable, ready to pivot if a particular strategy isn’t working. Understanding the unique characteristics of each hospital and healthcare system is also essential, as they can vary greatly. Without this insight, it’s very challenging for an outside company to break into the market effectively.
How can LLL help Israeli health tech companies enter the U.S. market?
LiveLong.Life’s deep understanding of the U.S. market, coupled with its agility and focus, positions it to effectively guide Israeli companies through the complexities of the U.S. healthcare landscape.
LLL pinpoints specific pain points within the U.S. healthcare system that technology can address, ensuring that Israeli companies develop solutions for real, pressing challenges rather than hypothetical ones.
Additionally, LLL provides valuable insights on structuring products for optimal market fit, helping companies navigate the intricacies of the U.S. healthcare system. I also see a significant opportunity for fostering collaborations among multiple Israeli companies to create holistic solutions. Often, a combination of technologies from different companies can tackle issues for clients that no single entity could address alone.
Ultimately, LLL serves as a vital connector, linking Israeli companies with key individuals and organizations in the U.S., which is essential for establishing a foothold in this intricate market.