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.