Bursting the digital health bubble: how chasing the hype is derailing true innovation

As I was walking along the pier near my home recently, I was mesmerized by a performer dipping two long sticks into a pan of soap and letting the wind lift shimmering bubbles into the sky. Some were small and fleeting; others grew into enormous, translucent orbs before they inevitably burst.

And in that moment, I couldn’t help but compare those bursting bubbles to the current state innovation in healthcare.

Bubbles have long been synonymous with innovation in the healthcare industry: excitement builds, investments flow, and then—pop—the bubble vanishes.

But here’s the truth: bubbles disappear. Technology and innovation don’t.

It became clear to me in that moment on the pier: instead of popping like a bubble, innovation moves more like a wave—continuous, building, reshaping the shoreline, and clearing space for the next surge.

It’s easy for founders and investors to get caught in the innovation bubble. That’s how it’s always been—and has become the standard explanation.

But this approach isn’t sustainable. And actually derails innovation in the long run.

The bubble is a distraction, not a direction

The bubble metaphor traps both founders and investors into short-term thinking:

• Founders chase whatever looks like the current disruption, adding flashy features (AI today, something else tomorrow) instead of solving deeper problems.

• Investors assume the burst is inevitable, treating startups as temporary bets rather than potential future standards.

The outcome? Crowded markets, copycat products, and a flattening of true innovation, until the next ‘bubble’.

Yet history shows technologies don’t simply vanish—they normalize. They become embedded infrastructure, as smartphones did when they displaced BlackBerrys, cameras, and pocket planners.

Disruption is cumulative, not momentary

Clay Christensen’s theory of disruption reminds us that new technologies begin in the margins, appeal to niche markets, and then rise until they reset the standard.

But disruption isn’t the end of the story.  Each truly successful breakthrough evolves into sustaining innovation—improvements that keep the wave rolling forward, to ultimately be disrupted, or continue to innovate.

Think of it this way:

• A bubble grows, stretches, and then bursts. It’s then gone forever.

• A wave gathers strength, crests, reshapes the shoreline, and then pulls back. And then builds again.

Each wave absorbs the last, reveals the gaps, and then sets the stage for what comes next. While the original wave may seem to disappear, its power, impact, and effect still exist to push other waves forward, while it simultaneously becomes part of the larger ocean.

Innovation is substantial, not surface level

For founders, the challenge isn’t to catch a bubble before it bursts—it’s to build for the long view.

This means asking yourself the tough questions:

• Why is your product a game changer? Then, ask your stakeholders and listen to their honest answers.

• What is truly novel versus what is just another feature? Are you adding innovation or technology because it improves the outcome or experience, or is it what is trending?

• Is part of your innovation recognizing how to integrate? Solve for access, overlap, and integration—not just “cutting-edge” add-ons. Even the most crucial product exists in a broader health ecosystem.

For investors, the challenge is to stop chasing bubbles and start spotting waves. The companies worth backing aren’t chasing hype; they’re reshaping tomorrow’s shoreline.

Like founders, investors must also ask themselves: is this funding a contribution to the broader market challenge, is this trendy or tactical, and does this decision consider the market now versus the potential to impact the future market?

This means that it is sometimes the smaller waves, seemingly insignificant, that are taking the time to build a strong company and thoughtful roadmap. To continue the metaphor, they rely on the power of the ocean to sustain them as they build slowly into a powerful change to the shoreline.  It doesn’t mean we should ignore the big waves. They might be the show stoppers, but they’re not always the game changers.

Novel vs. Modified:
What’s Happening in Women’s Health

Women’s health is a clear case study of where true disruption is occurring, pushing beyond the digital health status quo to tackle historically underserved aspects of women's health with precision, personalization, and clinical validation. For instance -

• AI-driven platforms for early detection of postpartum depression that integrate clinical, social, and behavioral risk factors.

• Non-hormonal contraceptives like vaginal pH regulators that offer alternatives for those who can’t tolerate hormones.

• Femtech devices for at-home fertility and hormone tracking that replace invasive, clinic-only diagnostics.

• Testing solutions that bring cancer identification to a stage where women can survive.

Yet, we need to keep focused on the areas of need that are still unmet to continue this disruption, rather than emulating technologies that are already proving to be disruptors.

Riding the wave

To burst the concept of health innovation being a bubble, founders and investors need to treat current technology trends as a series of waves.

How?

Founders:

• Integrate, don’t isolate - design for ecosystems and end user experiences, not stand-alone siloed products.

• Validate deeply - pressure-test real need and substantive pain points, not just usability. Customers will tell you their truth.

• Think wave, not burst - build your roadmap for sustained momentum, with clear stops along the way to get there.

Investors:

• Fund waves, not bubbles - unicorns are great, but companies with cumulative impact and strategic founders are the long game.

• Spot overlooked tides - support companies solving vital problems that have a market but may not be the trending topic.

• Reward durability - prioritize companies that have the core structures in place (even in small or start up phases): company infrastructure, organizational structure, financial stewardship, and market understanding.

Innovation isn’t a bubble waiting to burst. It’s a wave building toward lasting change.