Dealroom Report:
Growth Equity in European Healthtech

June 18, 2024

Anja-Vanessa Peter

5 min read

In our latest healthtech report, prepared in collaboration with, we highlight key trends and opportunities in the European healthtech space, primarily covering the growth stage.

Global healthcare expenses are weighing heavily on global economies. In 2022, around $10 trillion were spent on healthcare, representing 9.2% of global GDP. These rising costs are driven by an aging population, increasing prevalence of chronic conditions, high inflation, rising wages, and workforce shortages.


Digitalization through healthcare technologies (healthtech) is a key enabler of efficiency in the healthcare industry, leading to lower costs, broader access, and improved health outcomes. The pandemic accelerated healthtech adoption, boosting sub-sectors such as digital health, digital pharma, and health IT. As a result, healthtech stands out as one of the most rapidly growing categories in the European investment landscape. In 2023, healthtech was Europe’s 7th most funded industry with $3.3 billion of investments.

Looking ahead to 2024, healthtech investments are expected to rise, fueled by AI, telemedicine, and personalized healthcare. In collaboration with, our latest healthtech report highlights key trends and opportunities in the European healthtech space, primarily covering the growth stage.

You can download our full report here.

Funding Trends in European Healthtech

European VC investment in the health & life sciences sector this year has already surpassed 2023 levels, trailing only the exceptional years of 2021 and 2022. Digital care remains the top funded segment in the European healthtech sector but has declined by 71% from 2022-2023, following post-pandemic spend stabilization and economic downturn. Funding for digital pharma and health IT fell by 58% and 50%, respectively.


In 2023, late-stage investments suffered most from the economic downturns, while early stage proved most resilient. Growth stage funding fell 30% but still attracted the most VC investment. For 2024, we observe that the growth segment is surpassing pre-pandemic levels, nearly doubling its share of funding rounds.


Investment Rounds and Segment Performance

Over the last years, we have seen a progression of 38% of healthtech startups from Pre-Seed to Series A rounds, indicating that the sector has been maturing. This is in line with the observation that Series B median deal size has nearly doubled in a decade, while Series C+ rounds have seen fluctuations.


Zooming in on sub-segments within the healthtech sector for 2023, physician burnout and digital pharma led overall funding amounts, with digital pharma and medical imaging showing strong growth. In contrast, remote monitoring and drug development have seen strong drops since 2021. In terms of exits, healthtech in Europe has amounted to a third of those in the US, with both regions peaking in 2021. Digital care accounted for most exits since 2016 in both regions.


Leading Countries in Healthtech Funding

The UK and France are leading countries in healthtech funding in Europe, with strong government support and innovation programs boosting the sector. Nordic countries, Switzerland, the UK, and France are strong healthtech hubs, with Denmark excelling due to its digital infrastructure and public-private partnerships.


Emerging Trends in Healthtech:

a)    Metabolic Health:

Anti-obesity medications (AOMs) like GLP-1 are becoming popular for weight loss, driving the obesity therapeutic market towards a potential $100-200billion valuation by 2030.


However, the market extends beyond prescription weight loss drugs, by fostering the acceptance and development of further obesity-related treatments, including advancements in the healthtech space. This is particularly crucial given the ongoing global increase in obesity rates.


Kai Eberhardt, CEO of one of MTIP’s portfolio companies Oviva comments:

a)    AI-Powered Solutions & Medical Imaging


AI-powered solutions have been attracting significant funding in healthtech in 2023, with investments reaching $6 billion since 2016. These technologies are revolutionizing the industry by enhancing efficiency, cutting costs, and boosting clinician productivity by 40%, potentially saving $150 billion by 2026.


An example of this trend is the significant investment that have been made in 2023 in AI-powered surgical technologies. Companies like our portfolio company Caresyntax are leading the way in improving precision and efficiency in the operating room through the integration of AI-software, devices, and clinical services.


Bjoern von Siemens,Founder and CFO of Caresyntax states:

AI-driven medical imaging, another major area of investment, is projected to grow from $31.9 billion in 2023 to $45.8 billion by 2030, significantly enhancing diagnostic accuracy and treatment options. Recognized by governments, AI-enabled medical devices are crucial for diagnosing conditions like cancer and cardiovascular disorders, with numerous regulatory approvals in recent years.

Leading the Way in a Maturing Healthtech Market

Healthtech has matured significantly, becoming an attractive sector with exciting investment opportunities. At MTIP, we are proud to be a sector specialist, focusing 100% on healthtech. As the leading pure play healthtech investor at the growth stage, we differentiate ourselves with our exclusive dedication to this sector. While many competitors are generalist funds or healthcare funds investing across various sub-sectors like medtech, diagnostics, life sciences tools, and healthcare services, our focus on healthtech allows us to operate with relatively little competition in this space. This specialization enables us to build the largest portfolio of healthtech companies across Europe, solidifying our position as a key player in this dynamic market.

Carmel van den Berk, Investment Analyst at MTIP, concludes:


“Healthtech companies have seen significant growth over the past decade, with early innovations now reaching the growth stage. At MTIP, we support this evolution, observing maturation and increased investor confidence as these companies demonstrate product-market fit and commercial traction. The maturation of the healthtech sector underscores the urgent need to enhance healthcare efficiency, driven by staff shortages, physician burnout, and the significant global increase in health spending.”

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