London turns into high hub for healthtech.
As per the newest knowledge from London & Companions and Dealroom, the have been pumped into world healthtech startups in 2021. Notably, that is up from 280 % in 2016.
The findings have been launched to coincide with this week’s Silicon Valley Involves the UK occasion sequence, thereby bringing collectively buyers, entrepreneurs and CEOs from the UK and the Bay Space each bodily and just about to debate the position of expertise in constructing a greater future and fixing the good challenges of our time.
The pandemic has acted as a catalyst to an already rising healthtech sector and funding has reached document highs in 2021. The US leads globally with $31.9 billion in VC funding thus far this yr, whereas the UK is available in third with $3.8 billion, which is shut behind China’s $4.1 billlon.
The UK healthtech funding has risen from simply $420 million in 2016, which is a rise by 9 instances whereas US funding has elevated by 3.4 instances.
The brand new findings reveal that UK healthtech progress is being pushed primarily by the Golden Triangle of London, Oxford and Cambridge, a area dwelling to 5 universities on the earth’s high 25 for all times sciences and medicine1 and a world-leading hub for analysis and growth.
Whole VC funding for these three key metropolis clusters between 2016 and 2021 YTD is $5.7 billion, accounting for over 25 % of European healthtech funding and 65 % of the UK’s over this time interval. London healthtech startups secured $2.9 billion in funding whereas Oxford’s attracted $2.2 billion and Cambridge’s $600 million.
Europe is now the fastest-growing area globally for healthtech in accordance with the findings, with European healthtech startups elevating $8.1 billion in 2021, up from $1.7 billion in 2016 and rising at a price of 4.9 instances In Europe, London is the main hub for healthtech funding.
The fastest-growing subsector in London is distant monitoring and wearables, elevating $345 million thus far this yr, which is up from $17 million in 2016, a rise by 20 instances.
A number of the largest rounds this yr involving monitoring and wearables firms embrace a $130 million Sequence C for Huma and a £58 million Sequence C for femtech firm Elvie. Different fast-growing healthtech subsectors in London embrace drug growth with AI, dwelling exams startups and digital medical health insurance.
Laura Citron, CEO at London & Companions, London’s enterprise progress and vacation spot company stated: “Coronavirus has accelerated using tech and innovation to deal with human illness and well being.
At the moment’s findings display that the UK and US are main the best way for innovation on this sector and tech hubs like London, the Bay Space and New York are key companions for collaboration.
The UK’s Golden Triangle is dwelling to world-class universities for all times sciences and medication, a deep analysis and growth panorama and devoted funding and authorities assist. These components make London, Oxford and Cambridge a world-leading innovation hub for all times sciences and healthtech.”
Neelam Patel, CEO of MedCity, the life sciences cluster organisation for London stated: “Like Silicon Valley, London is a hub for AI and knowledge programming experience. Whenever you mix this with the town’s tutorial excellence in life sciences and the UK’s actively evolving regulatory surroundings and unrivalled dataset, it helps to elucidate why London has change into a world chief in healthtech.
There are synergies between the UK and US markets on this respect, so we’re seeing UK firms establishing a presence within the US, and US firms transferring to the UK to develop within the healthtech house.”
Matthieu Vallin, well being investor at Octopus Ventures, stated: “It’s an extremely thrilling time to be a well being investor in London, with outstanding innovation wherever you look.
That is partly as a result of quantity of high expertise throughout healthtech, deeptech and biotech all converging to create category-defining firms. We’re additionally fortunate to have plenty of good incubators, early-stage buyers, and progress funds, which assist startups construct their product, develop at tempo, after which hold scaling into larger markets such because the US, which is one thing we deal with with our personal portfolio.
Greater than ever earlier than, founders have the ambition to construct world well being firms from Europe, and so they now have expertise and capital to make it occur.”
Dr. Mridula Pore, Co-Founder and Co-CEO of London-based healthtech startup Peppy stated: “Within the UK and within the US, the pandemic has exacerbated key tendencies that assist the traction of well being tech startups like Peppy. Firstly, we’ve confirmed that it’s potential to work and entry healthcare remotely.
Secondly, staff have began to worth their well being and wellbeing extra extremely, and employers have recognised that funding in wellbeing is paid again in improved productiveness and retention. Lastly, we’ve seen gaps within the healthcare market widen, notably round household, reproductive and gender-specific well being.”