Failed 2020

    Proteus Digital Health

    Ingestible sensors in pills to track medication compliance is technically fascinating but practically unsellable. Patients don't want surveillance pills.

    Founded → Closed

    2001 → 2020

    Funding Raised

    $500M

    Industry

    Healthcare/IoT

    Country

    USA

    IdeaProof AI Failure Score

    68/100
    Market Fit RiskBurn Rate RiskFounder Risk
    Market Fit Risk
    15
    Burn Rate Risk
    70
    Founder Risk
    20

    Full Analysis

    Proteus developed a sensor-embedded pill that transmitted data to a wearable patch when swallowed, tracking medication compliance. Despite $500M in funding and an FDA-approved product (Abilify MyCite), doctors wouldn't prescribe it, insurers wouldn't cover it, and patients didn't want it. The technology raised profound ethical concerns about surveillance medicine. Proteus filed for bankruptcy in 2020 after nearly two decades of trying to find product-market fit.

    Could This Failure Have Been Prevented?

    IdeaProof's AI validates market demand, competitive positioning, and business model viability in minutes — catching the exact issues that sank Proteus Digital Health.