5 Security Mistakes That Kill Healthcare AI Startups

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I have sat in the room when a healthcare AI startup found out, three weeks before a Series A close, that their "HIPAA compliant" platform had been logging full transcripts of patient conversations into a third-party debugging tool with no business associate agreement in place. The round did not collapse because the product was bad. It collapsed because the data room turned up a security gap that nobody had thought to ask about until a junior associate at the VC firm pulled the wrong thread.

That story is not rare. It is close to the default outcome for healthcare AI startups that treat security as a checkbox instead of an architecture decision. After several years building AI-powered clinical software, the pattern I keep seeing is the same five or six mistakes, repeated by different founding teams, at different stages, with the same kind of damage at the end: a blown...

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