This is disappointing news that is more a reflection of poor strategy/execution than the opportunity in the transparency/healthcare digital IT space.
Castlight spent tremendous amounts on establishing a brand and growing FTEs and hiring consultants. It seems to dominate various trade association events to the point the associations appear to be Castlight captives. That’s expensive too; and stifles sector growth and competition.
Castlight very successfully portrayed itself as a giant — and as Kevin Leary (Sharktank) says, “The truth always comes out.” Now we know that even Castlight’s competitors aren’t far behind and in fact, may be well ahead of Castlight in substance, just not in flash. I’ve had reluctant investors because they thought Castlight was about to smother the market, a la Facebook. (I tried to convince them otherwise but Castlight’s branding was extremely successful.) And there is danger in announcing virtually every new customer acquired. Unless they believe any news is good news. Anyway, I am a competitor who’s taken a very different strategy that is now validated.
With the Rise of AI, What IP Disputes in Healthcare Are Likely to Emerge?
Munck Wilson Mandala Partner Greg Howison shared his perspective on some of the legal ramifications around AI, IP, connected devices and the data they generate, in response to emailed questions.
There are many other companies with much less capitalization that have made comparatively more progress in this space. From an estimate of $2 billion (154 times revenue) to $100 million (8 times revenue) is a very hard fall and speaks volumes about a severely flawed strategy/execution and credibility – but not the opportunity. I want to see our sector succeed by revealing the true value of the product with a successful business model.
I want to see Castlight succeed since a rising tide floats all boats and I hope others see Castlight’s underperformance as not a reflection upon the market opportunity and recognize that other competitors in this space may have less ‘flash’ but much more substance and a stronger value proposition.
