Healthcare sector attracts increased interest: Earlybird Health's new €173M fund

Earlybird Health closes its latest fund at €173 million, targeting investments in European healthtech companies.
Healthcare sector attracts increased interest: Earlybird Health's new €173M fund

Earlybird Health, the unit of Earlybird Venture Capital focusing on health industry investments, has today announced the final close of its latest fund at €173 million.

At €173 million, Earlybird says that this new fund is “significantly” larger than the previous vintage, a fact that indicates increased interest from investors in the healthcare sector and a trend we tracked and highlighted in the Tech.eu 2023 Annual Report.

Earlybird Health Fund says it will continue to invest in European healthtech companies from an early stage right on through the arduous process of obtaining regulatory approval and commercialisation. 

Specifically, the Fund is targeting companies working in the fields of digital health, diagnostics, medical devices, R&D tools, and biopharma. With that said Earlybird Health is adding a caveat to this thesis, with the fluidity to invest in companies that strive to deliver positive patient outcomes, regardless of the technology applied. 

Existing investments

Earlybird Health has already begun deploying capital from this new fund, investing in ImCheck Therapeutics, Oculis, Grey Wolf Therapeutics, and Ariceum Therapeutics.

According to the fund, it has deals with three medical device companies in the works but remains tight-lipped on the specifics until the ink dries.

Seek and support

While no scouting mission is an easy one, healthtech startups in particular pose their own set of unique challenges. Where Earlybird Health, and Earlybird Venture Capital as a whole, seek to leverage technology to gain a distinct advantage is via its proprietary Eagle Eye technology.

This AI-powered in-house build AI tool provides Earlybird with early scouting reports, both spotlighting potential up-and-coming startups to invest in and gathers information for established companies. 

As for those potential up starts, many of which operate in stealth mode, Eagle Eye gives Earlybird the jump, offering market intelligence through competitor analyses and trend reports.

Earlybird principal Dr. Christoph Massner elaborates:

"Eagle Eye will soon be the driver of a more effective, efficient, and inclusive deal sourcing and due diligence process for our investment teams. Earlybird Health is proud to set the standard for dynamic and informed deal flow in the European healthcare sector.”

Uniquely backed

Earlybird Health’s newest fund holds a unique position in terms of European Venture Captial firms investing in the healthtech sector in that its the only one with public health insurers as cornerstone investors. In so much, Earlybird Health is tangentially able to incorporate a payers' perspective in socialised medicine.

Expanding upon this, fund backer Barmer, a leading public health insurer in Germany, CEO Prof. Dr. Christph Straub commented:

“We are proud to pave the way for health insurers to invest in venture capital through our ongoing support for Earlybird Health. This reflects our commitment to fostering innovation within the German and European healthcare ecosystem. 

“We are confident these efforts will yield positive outcomes for patients worldwide.”

Lead image: The Earlybird Health team. Photo: STUDIO44 Strausberg.

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