Climbing the MedTech Mountain: How Startups can Tackle Clinical, Payer, and Exit Peaks

Taiwan is gaining recognition as a significant player in the global medical technology sector, with BE Health emerging as a notable contributor to its startup ecosystem. Operating as more than a traditional venture capital firm, BE Health functions as an incubator, integrating clinical expertise, hospital resources, and industry knowledge to support medical startups. Since its establishment, BE Health has assisted over 150 startups, including both Taiwanese teams and international ventures from more than 20 countries.

In an exclusive interview with GeneOnline, BE Health’s Managing Partner, Arthur Chen, provides a detailed look into Taiwan’s medtech ecosystem, outlining BE Health’s role in supporting startups and the opportunities and challenges shaping the future of medical innovation. From clinical validation to global market strategies, Chen’s perspectives highlight Taiwan’s potential as a hub for medical technology advancements and the broader implications for global healthcare.

A Dual Engine: Hospital-Driven Ventures and Clinical Validation

BE Health’s approach, modeled after U.S. institutions like the Mayo Clinic’s venture arm established in 1986, emphasizes integrating startups within hospital settings to test and refine innovations. “Hospitals are our proving grounds, and clinical feedback is our compass,” Chen states, underscoring the importance of real-world validation. Collaborating with institutions such as Taipei Medical University, Show Chwan Healthcare System, and Kaohsiung Medical University, BE Health enables startups to work directly with clinicians, facilitating rapid prototyping and feedback.

For example, Show Chwan’s IRCAD Laparoscopic Training center in Taiwan, Asia’s largest minimally invasive surgery training center, attracts surgeons globally, allowing startups to secure endorsements from key opinion leaders (KOLs) and accelerate product development. This approach aligns with 2024 trends, as hospitals like Cleveland Clinic and Massachusetts General Hospital adopt similar models. For readers, this suggests a future where medical innovations are more thoroughly tested, potentially enhancing care quality in local healthcare systems.

Scaling Three Peaks: The Challenges Facing MedTech Startups

Chen likens the journey of a medtech startup to climbing three formidable mountains, each representing a critical hurdle to global success. These challenges echo universal obstacles in the $500 billion global medical device market, projected to reach $800 billion by 2030.

Peak 1: Addressing Global Clinical Needs and Regulatory Hurdles

Every medtech startup begins with solving a clinical pain point, but local solutions don’t always scale globally. “Global clinical needs must drive innovation. A solution that works in one hospital won’t succeed unless it addresses universal pain points and clears international regulations,” Chen warns. He notes that many Taiwanese startups focus too heavily on domestic hospital feedback, limiting international scalability.

BE Health counters this by instilling a global perspective from the outset, guiding startups through regulatory frameworks like the U.S. FDA and Taiwan’s TFDA. They also design market-driven clinical trials to validate both efficacy and global appeal. Take AESOP Technology, founded by Taipei Medical University’s Professor Yu-Chuan (Jack) Li. Its AI-driven prescription error detection system, trained on Taiwan’s 1.3 billion prescription records, was validated at Harvard’s Brigham and Women’s Hospital and selected for Mayo Clinic’s Platform_Accelerate program, demonstrating the value of a global focus. With stricter regulations like the EU’s Medical Device Regulation in 2025, such strategies are increasingly vital, potentially bringing advanced technologies to patients faster.

Peak 2: Who Pays for Innovation?

Even a clinically validated product can falter without payer support. In the U.S., payers range from Medicare to private insurers, while Taiwan’s National Health Insurance (NHI) system adds unique complexity. “Payers want evidence that your product delivers value. Without a clear economic case, even the best innovations won’t scale,” Chen emphasizes. BE Health coaches startups on health technology assessments (HTA) and cost-effectiveness analyses to demonstrate savings, such as fewer complications or shorter hospital stays.

A shining example is Health2Sync, whose diabetes management app and cloud-based platform earned Taiwan’s first Software as a Medical Device (SaMD) license. Partnering with Sanofi, its insulin dose adjustment software is undergoing trials in 15 Taiwanese hospitals, proving cost savings for insurers by improving patient outcomes. Globally, digital therapeutics are gaining ground, showcasing a trend toward value-based care that could reduce healthcare costs, benefiting patients and public health systems alike.

Peak 3: The Exit Strategy—IPO or Acquisition?

The final hurdle is the “exit,” where startups convert innovation into commercial success via initial public offerings (IPOs) or mergers and acquisitions (M&As). “A successful exit requires clinical credibility and market traction. We help startups position themselves as irresistible targets for global players,” Chen says. Globally, 80% of medtech startups are acquired, as seen in 2024’s high-profile deals like Johnson & Johnson’s $13 billion acquisition of Shockwave Medical and Stryker’s $5 billion purchase of Inari Medical.

In Taiwan, Tantti Laboratory Inc.’s acquisition by Repligen Corporation underscores the value of early-stage technologies. BE Health supports startups by amassing clinical evidence, physician buy-in, and revenue data to attract acquirers. Some opt for early licensing deals, while others build scale for higher valuations. Acquisitions like these accelerate innovation pipelines, bringing advanced devices—such as Shockwave’s cardiovascular tools—to hospitals faster. For investors, medtech M&As, with global deal values hitting $150 billion in 2024, offer lucrative opportunities.

The success of a medtech startup hinges on its ability to gather robust clinical evidence, secure physician endorsement, and demonstrate tangible revenue to attract major industry players. Some startups opt for early market entry, licensing their technology to established firms, while others focus on building independent momentum to achieve a higher valuation before selling. BE Health plays a critical role in guiding teams through these strategic options, clarifying pathways, and facilitating connections with global corporations to maximize their potential for impactful partnerships or acquisitions.

Taiwan’s Unique Edge and Global Ambitions

Taiwan’s medtech ecosystem thrives on three pillars: a robust National Health Insurance database for AI training, a dense pool of medical and engineering talent, and a nimble manufacturing supply chain. These strengths position Taiwan as a launchpad for innovations like AI diagnostics and wearable devices, sectors projected to grow rapidly in the foreseeable future.

However, Taiwan’s small market and constrained NHI reimbursements limit local scalability. BE Health’s “Gateway to Asia” strategy helps startups expand into markets like Japan and Southeast Asia, amplifying their global reach. For readers, this means Taiwan’s innovations could soon enhance healthcare in their regions, from AI tools in Singapore to surgical devices in Australia. Chen stresses the need for collaboration across government, hospitals, investors, and regulators: “Innovation isn’t a solo act. It takes an ecosystem to turn ideas into global solutions.” This mirrors global trends, with countries like Germany and Israel adopting public-private models to drive medtech growth.

Charting Taiwan’s MedTech Future

Chen lays out a clear path for Taiwan’s medtech scene, showing how it’s stepping up as a global player. It’s all about tackling real clinical problems, sorting out tricky regulations and payer demands, and setting startups up for big wins—whether that’s an IPO or a buyout—by piling up solid clinical proof and making the right industry connections. BE Health is the glue here, helping startups tap into Taiwan’s goldmine of clinical data, top-notch talent, and slick manufacturing to get innovations off the ground fast. The name “BE Health” captures that teamwork vibe, with entrepreneurs and investors joining forces to push boundaries. From this island, startups are solving healthcare challenges that’ll make care smarter and more affordable everywhere. Taiwan’s medtech wave is rolling, and it’s worth keeping an eye on.

BE Health supports 150+ startups by enabling clinical validation, navigating global regulations, securing strategic exits, and leveraging Taiwan’s strengths in data, talent, and manufacturing to drive innovation in AI diagnostics and digital health.

Author

Bernice Lottering