April 15, 2021 + Jessica Di Palo
4 Min read
We have been collaborating with Dealroom.co, a data provider on startups, growth companies and tech ecosystems around the globe and INKEF Capital, a venture capital firm based in Amsterdam on our "Digital Healthcare Report". Today we are happy to present our results.
After a year where healthcare has been in the spotlight, European healthtech and digital healthcare startups are now worth a combined $41B, according to a new report us, Dealroom.co, and INKEF Capital, up from $8B in 2015.
It’s been said that Covid-19 brought “10 years of market evolution in 10 weeks” within healthcare and technology adoption, but according to this new report, the biggest changes are still yet to come in the next two years and beyond.
Spending more for less
Global healthcare expenditure is now around $8 trillion, of which $2 trillion is spent in Europe and $3.5 trillion in the US. Ballooning healthcare costs are putting a strain on government finances, but also on the outcomes of patients.
Patients increasingly receive lesser outcomes, at higher direct (out-of-pocket, insurance) and indirect (tax, co-payments) costs.
An ageing population, chronic diseases, obesity, and rising costs of drugs, met by a complex market that has been slow to adopt technology, means there are potentially huge savings to be made in the largest consumer category. VCs are certainly betting on Healthcare being the next big digital frontier.
5x in 5 years
Europe’s healthtech companies are now worth a combined $41B, up from $8B in 2015. Drug discovery, telehealth and online pharmacy startups have so far accrued the most value in European healthtech.
A herd of digital healthcare unicorns
So far some of the world’s most successful startups have emerged in markets where consumers direct relatively low amounts of their spending. Healthcare by comparison is one of the largest consumer categories, yet remains largely undigitized at almost every level of the value chain and patient journey.
Europe is already starting to see big Healthtech companies emerge in telehealth (Babylon, Kry), operations software (Doctolib, Docplanner) and insurance (wefox). And any market in the trillions could certainly support a European multi-decacorn.
The future of healthcare
Of course the pandemic has had a drastic effect on healthcare and healthtech, in particular accelerating the adoption, demand and trust for telehealth and other patient-interface level solutions. But there are broader industry digitization shifts that will have a bigger impact still on our collective healthcare.
Political and regulatory innovation, combined with technological advances can enable improved outcomes and cost-efficiency in healthcare, well beyond the pandemic. Our healthcare is set to become more proactive, looking to prevent illness or catch and diagnose ailments earlier. We’ll be empowered through personalised, decentralized care, with more power being put in the patient’s hands along the patient’s journey. And outcomes will become a focus of spending. Digital solutions can enable evidence-based outcomes and drive value-based spending.
Healthcare may have been slow to adopt digitization, but its impact here has the potential to be more meaningful than anywhere else. Digitalization will literally save lives.
Dealroom.co is the foremost data provider on startups, growth companies and tech ecosystems in Europe and around the globe. Founded in Amsterdam in 2013, Dealroom.co now works with many of the world’s most prominent investors, entrepreneurs and government organizations to provide transparency, analysis and insights on startups and venture capital activity.
MTIP is a fast-growing pan-European healthtech growth capital investor, based in Basel Switzerland. We invest in digital health and digitally connected medical device companies, with offerings that provide clear health-related economic benefits. Our entrepreneurial investment team, which has complementary private equity skills and exceptional deal-making capabilities, actively works with our portfolio companies to boost growth. MTIP efficiently deploys capital to unlock value and generate attractive returns for our investors.
MTIP invests in Mediktor
New investment in Mediktor
SFDR Art. 8 or Art. 9? What’s the difference?
SFDR: getting the terminology right
MTIP participates in Oviva’s new $80m Series C funding
Oviva raises $80 million financing round
MTIP invests in Intelligencia to reduce the risk of clinical research through artificial intelligence
MTIP's new investment in Intelligencia
Private Equity 101: Part one – Glossary
Are you new to the healthtech space?
Leading brands revolutionize care journeys with Lumeon
How Lumeon orchestrates care journey
Trialbee – our hero in patient matching and recruiting for clinical trials
Trialbee - patient matching and recruiting
Digital healthcare: patient-first?
Digital Healthcare Report 2021 in collaboration with Dealroom and INKEF Capital
SFDR – How does MTIP approach the EU’s Sustainable Disclosure Regulation?
New SFDR obligations
MTIP Announces Strong First Closing of Fund II to drive Healthtech Innovation
First Closing of Fund II
How to pitch to a healthtech Investor
MTIP invests in Koa Health to make mental health treatment more accessible
New investment in Koa Health
MTIP scored fantastic grades in the UNPRI assessment report of 2020
UNPRI Report grades 2020
4 Health VCs Share Their Business Priorities and What is Next
MTIP invests in Trialbee
New investment in Trialbee
TytoCare closes $50 million round as the demand for telehealth accelerates
TytoCare closes new round
The digital healthtech sector is expanding – and so are we!
Two new empolyees start in April
MTIP has sucessfully exited Blueprint Genetics
Blueprint exit January 2020
New MTIP investment in Oviva
New investment in Oviva
Whitepaper: A positive prognosis for the future of healthtech
Our first Whitepaper
Elite Summit 2019 – Interview with our Managing Partner Christoph Kausch
Elite Summit 2019
MTIP Healthcare Clinic 2019
Healthcare clinic 2019
New MTIP investment in Cynerio
New investment in Cynerio
MTIP invests in Lumeon Ltd.
New investment in Lumeon
Magenverkleinerung mit der Handnähmaschine
Nitinotes news paper article