March 30, 2023
5 Min read
European startups addressing clinical capacity bottlenecks
Burnout in healthcare is a pervasive problem that can have serious consequences for healthcare professionals, as well as for the entire industry. It is estimated to cost the US healthcare industry around $4.6 billion per year due to higher staff turnover rates, reduced productivity, and poor quality of care. Fortunately, startups are stepping up to address this issue, leveraging the power of digital health technologies to create innovative solutions.
In our latest healthtech report, prepared in collaboration with Dealroom.co, Inkef, and Speedinvest, we identified over 350+ European startups building tools for physicians that received a total investment of $1.2 billion in 2022. The report provides further insight into the key trends, drivers, and investment opportunities in this space.
The rapid rise in physician burnout
This year’s survey of 9,100 physicians across more than 29 specialties revealed a concerning statistic: 53% of physicians reported symptoms of burnout, a 26% increase since the report was first published five years ago. The top three contributing factors to this burnout epidemic were identified as bureaucratic tasks, lack of respect, and long working hours. It is clear that burnout can have a severe impact on an individual’s mental health, potentially leading to depression in some cases. Among the surveyed physicians, 23% reported depression, compared to 15% in 2018, and 64% of those who reported depression attributed it to job burnout.
With the increasing burnout rates in the healthcare industry, healthcare providers and health systems need to find ways to address this issue. The use of digital tools in clinical settings has been increasing in recent years, helping physicians manage their workloads, save time, and reduce stress. Our report identified over 350+ startups across 8 segments supporting physicians and healthcare providers. Over the past 5 years, the Clinical Decision Support segment has seen the largest investment of $692m, followed by Training and Development with $519m in investment.
European investment in physician tools has increased 2.7x since 2018 to $1.2b in 2022
The size of the opportunity to build tools to address clinical inefficiencies is demonstrated by the exponential growth in funding levels as well as the combined enterprise value of companies in this space. In 2022, European companies building tools for physicians managed to raise a total of $1.2 billion, a figure that was exceeded only in the preceding year with a $2.0 billion investment. In 2018, all companies in this space were worth a total of $5.0 billion, yet by 2022, this figure had increased 4.9x to a staggering $25.0 billion. Furthermore, since 2019, financing rounds above $40 million have become more prevalent, accounting for over half of all investments in the recent years, suggesting an increasingly maturing market.
Taking a closer look at the geographical landscape, investment in tools for physicians in the UK and France has skyrocketed since 2018, with the UK receiving over 30% of the total investment, followed by France accounting for almost 30%.
At MTIP, we are dedicated to support companies addressing clinical inefficiencies and burnout in the healthcare sector. Magdalena Plotczyk, Investment Associate at MTIP, concludes:
“As healthtech investors, we believe in the potential of digital health technologies to revolutionise the way physicians work. By equipping them with the necessary tools and resources to streamline administrative tasks, reduce stress, and save time. This allows them to focus more on what matters most – providing the highest quality of care to their patients. We are proud to support companies such as Lumeon, Mediktor, and LynxCare, developing innovative solutions specifically aimed to meet the needs of healthcare providers and improve the experience of physicians in their daily practice.“
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