5 Critical GTM Lessons from AppliedVR’s Journey to Create a New Medical Category

Building a new category in healthcare isn’t just about having breakthrough technology – it’s about methodically creating trust, evidence, and real-world validation. In a recent Category Visionaries episode, AppliedVR founder Matthew Stoudt shared insights from their journey of turning VR from a laboratory curiosity into a FDA-approved treatment for chronic pain.

1. Build Evidence Before Scale

In an industry where many startups rush to market, AppliedVR took the opposite approach. “One of our early mantras is that we wanted to build an unparalleled body of evidence to demonstrate this,” Matthew explains. “Because anytime you’re going to bring something novel into the marketplace, there’s always going to be a lot of questions around it.”

This focus on evidence-building wasn’t just academic – it was strategic. By methodically documenting their results, they built credibility that helped them navigate the complex healthcare ecosystem and eventually secure FDA approval.

2. Start with Strategic Beachheads

Rather than targeting the broader consumer market immediately, AppliedVR began with the top 20 hospitals in America. This approach allowed them to build credibility while learning crucial lessons about implementation and user experience. Now, they’re focusing on the VA as their primary entry channel, where Matthew notes, “There’s about 6 million vets that are suffering from some form of pain. 1.5 million of them are deemed to be moderate to severe pain sufferers.”

3. Design for Real-World Usage, Not Lab Performance

One of their most valuable lessons came from early attempts at incorporating biometric feedback. “We actually started with this idea of being able to use a pulse oximeter attached to your finger, connected to Bluetooth,” Matthew recalls. “In a laboratory, that is awesome… but you send that into a home to a 55-year-old male, female, whatever, and they got to put a pulse – what? On their finger? I don’t have blue teeth. What are you talking about? Right? It’s going to fail.”

4. Focus on the Three E’s of Design

AppliedVR developed what Matthew calls “the three E’s of design” – ease of use, engagement, and efficacy. As he explains, “I don’t care how efficacious it is, I don’t care how engaging it is, if it is complicated, if it is hard to use, if there’s friction in the equation, the patient’s never going to use it. It’s going to sit in a corner and gather dust.”

5. Solve for the Real Problem, Not Just the Symptoms

Perhaps their most crucial insight was recognizing that the traditional approach to chronic pain treatment was fundamentally flawed. “We have always viewed chronic pain as if it’s acute pain,” Matthew explains. “We give people NSAIDs, things like Tylenol, Advil, then we give them opioids, and then we give them injections, and then we give them implants, and then we give them surgery, surgery. But we don’t fundamentally treat it for the condition that it is.”

This understanding led them to develop a more holistic approach, addressing not just the physical symptoms but the psychological aspects of chronic pain. It’s a reminder that true innovation often comes from reframing the problem rather than just building a better version of existing solutions.

Looking ahead, Matthew envisions VR becoming “a healthcare hub in the home” – but he’s realistic about the timeline, noting this is “probably more in the eight to ten year time frame.” This patience and long-term thinking exemplify their entire approach to category creation.

For founders building novel solutions in regulated markets, these lessons highlight the importance of methodical execution over rapid scaling. Sometimes the most disruptive approach isn’t about moving fast and breaking things – it’s about carefully building evidence, credibility, and real-world validation while staying true to your core vision.