Last year we discussed whether healthtech was the key to tackling the healthcare crisis – a crisis of towering NHS waiting lists, staff burnout, and strikes. Sadly, the crisis remains just as prevalent nearly a year later.
The healthtech landscape appears littered with obstacles. Most strikingly, funding has been riding a slippery slope: global investment has continued to decrease each year since 2021. New startups are also falling year-on-year: according to Tracxn, 2023 saw the lowest number founded in the last ten years, with 2024 set to be lower.
So, why are funding and new startups down yet again? And amidst this downhill activity, why would now be the time for healthtech companies to shine?
- Macro trends
The pandemic led to a surge in both healthtech investment and the creation of startups, which is naturally falling as the market continues to adapt to the post-pandemic world. The economy and inflation has clearly played its part in reducing global VC investment, with 2024 feeling the brunt of these macro effects.
A change in strategy is also likely, with companies and investors focusing on maximising existing resources/funds and adopting a more targeted approach.
- Numbers can vary
While Dealroom reported overall 2023 investment figures at $25bn, Tracexn placed them at $19.4bn. This could be down to how healthtech companies are categorised and whether any biotech and pharma companies (which may have overlap) are included.
As such, while trends may be similar, gaining an accurate insight into the true level of funding can vary. (NB: these are also global figures, not for the UK, which has the third highest number of startups globally).
- There’s still opportunities
Crucially, early-stage funding for startups and scaleups has somewhat bucked the overall trend and remained relatively resilient. What’s more, with less startups being created, there are arguably better opportunities to get your message out there and heard.
This all means that, regardless of reported funding statistics, what really matters is how you promote the power and potential of your healthtech products and services. If companies can prove they can provide tangible good to hospitals, the sector and society at large, then they can find success.
The solution? Healthtech taking on the crisis
One example of health technology excelling is healthtech scaleup Navenio. It’s not a case of simply throwing more staff and resources at hospitals, but finding ways to improve the flow and efficiency of operations. Navenio’s tech uses real-time location services to help hospitals most effectively allocate tasks and resources by showing the live location of patients, staff and physical assets. This complex task allocation is made possible – and simple – through AI.
Healthtech is where AI shows its ability for good. We saw last year how another company discovered a superbug-killing antibiotic and trials revealed it can work as good as two radiologists in breast cancer screenings. These are exciting developments laying the groundwork for the future of healthcare.
How healthtech could unfold
Sifted spotlighted some eye-catching early-stage rounds for biotech and drug discovery in April. One startup, Biofidelity, is “building genomic technologies that speed up test results” and then it “recommends timely treatment options”, while the other, Infinitopes, is developing groundbreaking cancer vaccines.
But it’s not just in hospitals and labs where healthtech can have an impact; the use of everyday wearables and apps can reduce the load on healthcare services. From Apple watches to meditation apps to UV and pollution sensors, an app a day can now keep the doctor away. In the coming years, we will really see these devices come to fruition.
Time to shine
At a time when overall funding is falling and less new players are entering the market, healthtech companies have a prime opportunity to make their mark and showcase their product. With the right messaging, they can illustrate how they can provide groundbreaking improvements to healthcare. And with this base, avenues like NHS grants and partnerships are available to help nurture innovation.
As the healthcare system tackles a cycle of continuous challenges, healthtech innovators are easing the load – and they will be crucial to helping mend the system. Now is the time for the next generation of healthtech companies to shine.
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