The UK is in the pink and sitting pretty in third place when it comes to the countries driving the growth of the global healthtech sector.
According to the latest data from London & Partners and Dealroom, a record $51.3 billion (£38.1 billion) has been pumped into global healthtech startups this year, up 280% on 2016 levels. In terms of their data, healthtech, or digital health, refers to any company using technology to improve the research, delivery, payment, and/or consumption of care.
As expected, the pandemic has “acted as a catalyst to an already growing healthtech sector and investment has reached record highs” this year.
The US leads globally with $31.9 billion (£23.7 billion) in VC investment so far this year. China sits in second place with $4.1 billion (£3 billion), with the UK close behind at $3.8 billion (£2.8 billion).
UK healthtech investment has risen from $42 million (£31.2 million) in 2016, an increase by nine times whilst US investment has increased by 3.4 times.
Laura Citron, CEO at London & Partners, says: “Today’s [19 November] findings demonstrate that the UK and US are leading the way for innovation in this sector and tech hubs like London, the Bay Area and New York are key partners for collaboration. The UK’s Golden Triangle is home to world-class universities for life sciences and medicine, a deep research and development landscape and dedicated funding and government support. These factors make London, Oxford and Cambridge a world-leading innovation hub for life sciences and healthtech.”
Total VC investment for these three UK clusters between 2016 and 2021 YTD is $5.7 billion (£4.2 billion), accounting for over 25% of European healthtech investment and 65% of the UK’s over this time period. London healthtech startups secured $2.9 billion (£2.1 billion) in funding while Oxford’s attracted $2.2 billion (£1.6 billion) and Cambridge’s $600 million (£446 million).
In Europe, London is the leading hub for healthtech investment over the last five years, with investment growing 11.1x faster than in the Bay Area, New York and Boston.
The Golden Triangle is home to 508 healthtech startups who have been backed by VC investors between 2016 and 2021. The majority of these companies are based in London, home to 408. The combined value of London’s healthtech startups has also increased by nine times since 2016, taking its total value to $21.3 billion (£15.8 billion), the largest in Europe.
The stats are not just about enterprise technology. The fastest growing subsector in London is remote monitoring and wearables, raising $345 million (£256.4 million) so far this year, up from $17 million (£12.6 million) in 2016, an increase by 20 times. Other fast-growing healthtech subsectors in London include drug development with AI, home tests startups and digital health insurance.
Healthtech has had plenty of coverage at eWeek UK.
Earlier this month London-based AI firm RwHealth raised $8.4 million (£6.2 million) in Series A funding.
In October, the UK’s Budget had the potential to bring in a measure of hope for companies in the healthtech sector (and spacetech) with funding and a digital drive.
Also last month, fintech startup Cleva unveiled its payments system for home care agencies.
The London-based healthtech company provides carers with a digital wallet which can be loaded and monitored by them and their family. Each care worker then has a single Cleva Mastercard prepaid debit card which they can use for all of their clients, and an app which allows them to select a client’s digital wallet and spend on their behalf.