Global health and biotech startups – no let up in record-breaking funding pace

Despite a blockbuster 2020, health and biotech startups are continuing to smash all records in 2021. In partnership with Emerge GHI, and as Q3 has come to an end, we’ve explored the funding activity, value creation and global trends in Health and Biotech startups and innovation.

Report - Global Health and Biotech investment update

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Record high for global funding

Globally, venture capital investment in healthtech and biotech startups has smashed all previous records in 2021. Healthtech startups have already raised 1.3x 2020’s funding total, at $44.6B.

Healthtech investment

The three highest quarters for both healthtech and biotech investment ever have all come in 2021. Biotech startups have raised a collective $33.5B so far in 2021, and could reach $45-50B by year end.

Biotech VC quarterly

Healthtech investment is also getting more global. While the US continues to lead in absolute terms for VC investment raised, other regions are growing faster.

$4T market and just getting started

Combined enterprise value of healthtech & biotech founded since 1990 is now $4 trillion.

Healthtech companies globally have reached a combined value of $1.7T, a 5.5x increase since 2016. Biotech companies are valued at $2T, a 5.4x increase since 2016.

There have also been a record number of new unicorns announced in 2021. 61 new healthtech and 23 biotech unicorns have been created in 2021 alone. In total, 179 healthtech and 166 biotech companies founded after 2000 have crossed the $1 billion milestone.

With $8 trillion in costs and rising, Healthcare is one of the biggest consumer categories.

Ageing populations, served by a complex, slow-adapting market mean huge savings to be made in the largest consumer category – the next big digital frontier.

Consumers are expecting better (digital) service and payers demand more efficiency. There’s a huge opportunity for tech to eliminate inefficiencies and wasteful spending while improving outcomes.

Report - Global Health and Biotech investment update