The healthcare startup guide to international expansion

The healthcare startup sector is thriving, fueled by cutting-edge innovation and technology at its heart. From telemedicine platforms to biotech breakthroughs and AI-driven diagnostics, healthcare startups are driving change. 

International expansion can open doors to new customers, resources, and markets, but it’s no easy feat. Healthcare startups, particularly early-stage ones, often struggle to balance the costs of scaling globally with limited capital. It requires significant financial investment in setting up operations, marketing, distribution, and compliance.

To make your life easier, we explain what healthcare startups need to know about going global in this guide. We’ll also discuss how you can simplify the process using a global HR platform. 

What is international expansion for healthcare startups?

International expansion for healthcare startups means entering new markets outside your home country to offer your products or services. This could involve selling healthcare devices or establishing research partnerships in new regions. For example, if you're running a telemedicine company in the US, expanding into Europe or Asia could unlock significant growth opportunities by reaching new patients and healthcare providers.

But it’s not just about selling your product. 

Expansion into new markets also involves adapting to different regulatory environments, cultural expectations, and healthcare systems. Each country has its own healthcare infrastructure and legal framework, especially when it comes to patient data, treatment protocols, and medical device regulations. So, it’s crucial to understand the landscape before diving in.

When is the right time to expand abroad?

Knowing when to expand abroad is crucial to avoid overextending your resources too soon. Here are a few signs that it might be the right time:

Solid home market success. Before expanding internationally, make sure your startup is thriving in your home market. This means steady revenue growth, product-market fit, and positive customer feedback. Without a stable foundation, going global could stretch your team too thin.

International demand. If you’re receiving inquiries from customers or partners in other countries, it’s a good sign there’s interest in your product. For example, telemedicine companies have seen a global surge in demand, especially since the pandemic, making international expansion more feasible.

Scalable infrastructure. Ensure your business operations, supply chain, and customer support can handle the increased complexity of international expansion. Can your platform manage multiple languages? Do you have the bandwidth to manage customer support across different time zones? If your operations are scalable, you might be ready for the next step.

Access to new markets or funding. If certain regions offer better access to funding or larger patient populations, it might make sense to expand. For example, many healthcare startups look to Europe for its generous R&D grants and robust healthcare infrastructure.

What are the benefits of healthcare startup expansion?

International expansion offers healthcare startups a range of benefits, from increased revenue potential to broader access to innovation and talent.

Larger patient base. Expanding internationally opens the door to a broader audience. This is especially helpful for digital health startups, where services like telemedicine or remote patient monitoring can be easily scaled across borders.

 For example, Babylon Health, a UK-based telehealth platform, expanded into Rwanda to offer affordable healthcare through mobile technology, reaching underserved populations.

Access to global talent. By expanding internationally, you can tap into a diverse talent pool with specialized expertise. This is particularly useful for biotech and medtech companies that need access to top-tier researchers and scientists.

Funding opportunities. Some countries offer more favorable environments for healthcare startups, including access to R&D funding or tax incentives. For example, countries like Germany and the UK provide generous grants for healthcare research and innovation, while the US remains a global hub for venture capital in the healthcare space.

In 2021, US healthcare startups raised a record $44 billion in venture capital, highlighting the importance of international funding opportunities for growth.

Partnership opportunities. Healthcare is a global industry, and many startups benefit from partnerships with international research institutions, hospitals, or government agencies. Expanding abroad can open up collaboration opportunities that may not exist at home.

Cost-effective hiring. Hiring internationally is also often far more cost-effective, which is crucial for budget-conscious startups. For instance, there is an absolute wealth of talent and opportunities in emerging, untapped tech hubs across the globe, including Kolkata, New Taipei City, and Warsaw.

“When you’re a startup that cares about efficiency and burn rate, and you don’t want to throw money out the window, you need to hire internationally."

Richard Gödel, entrepreneur

With Remote's Salary Explorer, you can gain key insights into salary benchmarks and expectations across the globe. And, with our free Employee Cost Calculator tool, you can get an accurate picture of what exactly it will cost you to hire someone in a new country.

What are the challenges of healthcare startup expansion?

While the benefits are significant, international expansion also presents some challenges specific to healthcare startups:

Regulatory hurdles

Navigating the regulatory landscape in each country is often the biggest challenge. Healthcare startups must follow medical device regulations, data privacy laws (such as GDPR in Europe), and local healthcare policies, which can vary significantly.

Understanding and complying with different rules across markets can be time-consuming, and expensive, and may delay market entry.

Cultural differences

Healthcare systems, patient behaviors, and provider practices differ from country to country. A telemedicine solution that works in the US may not resonate in a country with less internet access or different healthcare delivery models.

Hiring local talent

Expanding into a new market requires deep knowledge of the local healthcare landscape, and finding the right talent with both healthcare and technical expertise can be difficult. Recruiting and retaining top talent in new markets can be time-intensive and costly, especially in markets where healthcare expertise is in high demand.

Payment systems 

Each country has its own payment infrastructure and insurance systems. In some countries, healthcare is predominantly public, while in others, it’s private or a mix of both. Understanding how to get paid and ensuring compliance with local payment regulations is essential.

Data security 

Handling sensitive healthcare data comes with strict legal obligations and data privacy laws vary widely across regions. Regulations like HIPAA in the US or GDPR in Europe impose strict rules on how patient data can be collected, stored, and shared.

Maintaining data security and ensuring compliance with varying data protection laws across markets requires robust technology infrastructure and legal expertise

How to streamline your healthcare startup expansion strategy

Healthcare startups need a strategic approach to ‌global expansion. Here are some key steps:

Conduct in-depth market research. Before expanding, conduct thorough research on your target market, including its healthcare system, regulations, and competition. Understanding local needs and preferences is crucial to tailoring your approach. You can work with local market research firms or healthcare consultants to get an accurate picture of the landscape.

Build strategic partnerships. Partnering with local healthcare providers, research institutions, or distributors can help you establish a foothold in new markets. This can also help you navigate regulatory challenges more effectively.

Hire local expertise. Bring on local team members who understand the healthcare system, regulatory environment, and cultural differences. This will make the transition smoother and help you avoid costly mistakes.

Focus on compliance. Work with legal experts who specialize in healthcare to ensure your products or services meet local regulatory requirements. This includes everything from clinical trials and product approvals to patient data protection.

Use a global employment partner. A global HR platform like Remote has everything you need to navigate the complexities of legal compliance, payroll, and HR across different countries. Our team of global employment experts can ensure you stay compliant with local laws while focusing on scaling your business. 

Whether you’re hiring a single contractor or building a team across multiple countries, Remote provides scalable solutions to support your growth. Let’s explore this in further detail below.

“Working with contractors allows us to test a new market, or bring a new addition into the team quickly. We’re not stuck in a situation if we need to change focus. That agility is so important to our growth."

Li-ran Navon, entrepreneur

Global Employment & Expansion —

10 min

Startup expansion guide: Where should you begin?

Discover how international expansion can help your startup grow. Understand the benefits and challenges, and learn how to overcome them.

How to make healthcare startup expansion simple with Remote

International expansion can be complex, but using a global partner like Remote can simplify the process. 

Remote is an employer of record (EOR) that helps companies hire, pay, and manage teams across multiple countries. Remote offers cost-effective solutions for expanding into new regions without the need to set up local entities, saving your startup time and resources.

Here’s how Remote can help your healthcare startup expand internationally:

• Local labor law compliance. Remote ensures compliance with local labor laws, payroll regulations, and tax requirements, so you can hire talent in any country without setting up a local entity.

• Streamlined global hiring. With Remote, you can easily onboard employees or contractors, manage payroll, and offer competitive benefits across different countries, all from a single platform. Use our free Employee Cost Calculator to calculate how much it costs to hire an employee in a new country. 

• IP protection. Remote helps healthcare startups protect their IP globally by ensuring contracts are compliant with local regulations and safeguarding proprietary technology and research. Learn more about Remote’s IP Guard.

• Fast and accurate payments. Healthcare startups expanding globally often encounter several challenges when making payments to international teams, including currency fluctuations, cross-border transaction fees, and compliance with international regulations. Remote’s payroll system allows you to pay your global team members quickly and securely. 

• Focus on growth, not admin. Remote takes care of all the administrative tasks associated with global hiring and compliance, freeing up your time to focus on growing your healthcare startup. 

International healthcare startup expansion made easy with Remote

International expansion presents significant growth opportunities for healthcare startups, but it also introduces unique challenges. 

But you don’t have to stress — rely on a global HR expert like Remote to handle every aspect of the employment process.

By consolidating hiring, payroll, compliance, benefits, taxes, and team management into one intuitive platform, Remote simplifies every step of international expansion. With its purpose-built design, Remote unlocks simple, fast, and compliant global growth, empowering businesses to focus on what truly matters: driving innovation and achieving success. 

Ready to take your healthcare startup to the next level? Get in touch with Remote today to learn how we can support your international growth journey!