Trends of investment in HealthTech industry 2020

Team TheCodeWork

23 September 2020 5 minutes read
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Reading Time: 5 minutes

Insights from various funding data and reports state that the HealthTech industry is mending the gaps between the present and future needs. Consequently, investors and stakeholders need to strategize their shares and investments accordingly.

 The HealthTech industry is working hard to bend the expenditure curve and improve the quality of service for the customers. 

With the global pandemic hitting the market, there has been a surge in the demand for technology. This has been spurring the investment trend in the HealthTech industry as well.

The gap between the offline paradigm of health care services and the HealthTech industry is soon to be filled up, given the present situation. 

Also, a lot of start-ups have been budding that provide service in the HealthTech market. They have been drawing investment with their fresh ideas and innovation.

The focus of investors in the HealthTech Industry

As per reports, the investment by venture capitalists and equity investors in health tech has surged. This in turn is attracting several start-ups with innovative ideas.

A short review of the investment trends in the HealthTech industry from 2011 to 2019, can be listed as follows:

Investment trends in HealthTech post COVID-19

Trends of investment in HealthTech

COVID-19 has highlighted the inadequacies of the healthcare industry. It has further intensified the need for modern digital healthcare services, improvements, and capacities.  The world needs to be prepared in a better way to fight such pandemics/epidemics in the future, in a more efficient way.

Going forward, the HealthTech industry will see a massive surge in demand and supply, globally. The efficiency that the industry has provided during the pandemic, the Investment trends in HealthTech post-COVID-19 is expected to rise from now on.

The aim is to build a strong HealthTech industry as the spine of health care services around the world. This will aid in solving numerous challenges in the health care industry in the future.

The tools of a strong HealthTech industry which will attract high investment, include:

These tools will solve supply chain encounters and further claim settlements, thus resulting in an investment surge in the Health-tech industry.

The HealthTech industry has been trying to promote affordable digital services. This has further grabbed the attention of the investors as it can enlarge its customer base.

Some of these services include:

Investment in HealthTech around the Globe

The financial services and economy have been disrupted by the global pandemic. However, the health technology/HealthTech industry market is among the few who have thrived.

Let us see how!

With a striking first quarter in HealthTech investment, the performance sustained until the second quarter of the year, 2020.  It has been reported that the investors are putting up to $4.2 billion in the global HealthTech market. 

Graph showing investment in healthtech 2019 Vs 2020

Check out the numbers here!

Roller coaster of investment in Health Tech

As per reports, if the investment trend in the HealthTech industry is studied closely, then you will notice a definite roller coaster pattern. 

How? Read along to understand.

The investment trends in the HealthTech industry decreased constantly until it touched a low of just $1 billion in the first half of April. This was the time when the pandemic had taken a toll and lockdown was in action.

Numerous venture capitals as well as equity funds paused all their deals with the HealthTech sector.

For instance, with the economic ripple effect of the global pandemic, important economic hubs of China fell. This includes manufacturing hubs like Hangzhou, Guangzhou, and Beijing as well.

During the mid-year phase, China had a few deals (as low as four to five) and just $249 million in investment in its ventures. This denotes a 56% reduction in the investment in the HealthTech industry. 

However, not to worry, investment surged again post lockdown. The recovery appeared to be a pretty smooth one. 

Some of the uphill trends in investment in health tech can be listed as:

Overview

So in a nutshell, a renunciation is expected in the healthcare industry towards digital healthcare services. Especially in precautionary healthcare services. 

This means the world is expected to witness a huge surge of tech-centric businesses. This is a result of the increasing customer appetite for modernizations. 

Easier access to medical consultations, linking health service providers with diagnostic clinics is a desirable change. People love tech-driven services due to the efficiency and smooth interface of action. Health care service is soon going to be revolutionized in the same manner.

With the rising investment in the HealthTech industry, a huge change in the health service platform is just a matter of time.

Hopefully, this has been comprehensive enough to grasp the investment trends in the HealthTech industry on a global scale. You may check out our business report to get an outlook on the trends that are prevalent in the other industries as well.

To do that, follow us at TheCodeWork and stay tuned for more.

Team TheCodeWork

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