Early-stage VC firm Karista, has published the third edition of its European Mapping of Digital Health Funds report, and according to their research, European healthtech startups raised nearly €4.9 billion in 2022, indicating growth in the sector.
The report found that there are 1000+ companies active in the digital health sector across Europe, with 301 deals closed in 2022, representing a 22% year-over-year increase in total financing.
The report covered the most active funds based on investment stages, and showed that 52% of funds active in digital health are investing in the early stage, while most of the new funds that joined the 2022 mapping are investing in the seed stage.
Multi-stage players have increased, and according to the report, they represent 37% of investors. The report for 2022 also includes Nordic funds and found that 7 active funds are from Sweden, Denmark, and Finland, of which 40% are multi-stage and 60% early-stage investors.
Regionally, the top healthtech investors remained constant over the last two years: France (28%), the United Kingdom (20.2%), and Germany (19.6%). Naturally, the firm highlights its own back garden, revealing that €1.7 billion was invested in France, a figure up 3x from the €577 million invested in 2021.
Karista's research also revealed that the average European healthtech funding amount has increased (reaching an average of €20 million vs. €17 million in 2021), and inline with the market, valuations returning to pre-pandemic levels.
Although there were no IPOs in the European healthtech ecosystem in 2022, M&A activity increased by 1.7x over the course of the year.
As the industry intensifies and strengthens, 60% of acquisitions at the global level are related to digital health players.
However, while the number of active funds investing in healthtech is slowing down, the report also analysed those investors who continue to support the sector. According to the Karista report, there are 31 funds, so-called "super investors", that invested in more than 10 digital healthtech companies, while nearly 55% of them are early-stage investors.