UK drives global HealthTech sector growth
posted 14th June 2022
In this article, dealmaking business, the GS Verde Group examine the state of investment in the UK HealthTech market. Exploring the latest trends, as indicated by data platform Beauhurst in a recent report, UK HealthTech investment is driving global growth in the sector.
It will come as no surprise that there has been substantial global demand for HealthTech solutions in the last two years. A term most often used to describe any technology-enabled solution for out of hospital or general practice healthcare, this technology sector provides a way of treating and monitoring illnesses through remote digital health interventions.
With the global market thriving, it is encouraging to see the UK drive growth in the global HealthTech sector, with London being a leading hub within the industry. In fact, UK Tech News reported that across the UK and US, over $51.3b in funding was raised for the HealthTech sector in 2021. This total marks a 280% rise since 2016.
The sector has seen rapid transformation in recent years, where it used to be considered somewhat of a laggard. Start-ups, in particular, are now a source of major health innovation, and equity investment into these businesses is a key driver of innovation in the healthcare industry.
What will the future of the UK HealthTech market look like?
The reason for this seismic shift in funding is simple: it was necessary. The biggest factor to influence health technology in the UK has undoubtedly been the post-pandemic drive towards more efficient and flexible healthcare solutions. From at-home diagnosis support to tailored wellness programs, the demand for technology to do more for our physical and mental health needs, particularly when we are unable to access on-site healthcare, is clear.
Investors know it too, as venture capital investment into UK HealthTech continued to climb steadily throughout 2021, following a record high in 2019 that was thanks in part to HealthTech provider and unicorn company Babylon's £454m raise that year. The sector has also seen a marked rise in appetite for acquisitions, increasing in value by 174%.
With almost the same number of acquisitions already this year as the bumper figures of 2021, the HealthTech market looks set for continued growth, as activity centres around intersections with big data, virtual reality and artificial intelligence.
Government funding has also accelerated growth in the HealthTech sector as of late. In 2020, the UK Government provided £32m across six initiatives as part of the roadmap to ensure the country remains at the forefront of life sciences research and development.
The GS Verde Group is well-versed in the medical and health sectors, having advised on a number of acquisitions and fundraises and taking an active role in the regional life science innovation community.
With pressures on the NHS showing no sign of relenting in 2022, HealthTech platforms are equipped address the need for digitisation and innovative solutions. Healthcare as we know it could undergo real transformation if investment continues at these levels.
With thanks to Beauhurst for providing data and analysis.
Whether you are buying a business, selling a business, or raising funding, the need for expert advice is essential. Contact the GS Verde Group for more information.
