Healthtech

Introduction

Biotech & Pharma is the second biggest VC investment category after only Enterprise Software, the rest of Health ranks 6th.

In 2024, $25 billion in venture capital was invested into Healthtech companies globally.

Whilst 2021 was the highest year for Healthtech in terms of VC invested, 2024 was the third highest year on record.

Healthtech encompasses software-driven tech for patients (direct-to-consumer), tech for healthcare providers, (professionals, hospitals) and tech for biotech and pharma

These are distinct categories from biotech and pharma which deal with atoms (leveraging biology and chemistry respectively) rather than bits. That said, Biotech, pharma and Healthtech are increasingly overlapping.

Combined, healthtech, pharma and biotech are the second biggest VC investment category, after Enterprise Software, with $65 billion invested in 2024. This leading position can be explained by the massive size of the healthcare and biopharma industries.

Total venture capital in health, biotech and pharma peaked at $124B in 2021 up from just under $30B in 2015. This was in part driven by pandemic innovation, coinciding with and a surge in overall venture capital deployment.

Since 2021's peak, Healthtech investment has been consistently falling until 2023. In the past year it has experienced a 6% growth.