Health tech companies: growth and funding in a post-Covid world

In the years preceding the Covid-19 pandemic, public interest in health and wellbeing had been growing steadily. An ageing population and increasing global awareness acted as catalysts for the expansion of the industry. The value of the global health industry had, by 2018, grown to around £6 trillion, leading to projections for growth to as much as £9 trillion by 2022. The current pandemic has compounded the trend, shifting even more focus onto our health, the methods we use to access health services and the way those services operate.

As health tech – which encompasses any technology-enabled healthcare products or services – requires infrastructure to be in place, stable internet access and a willingness to evolve, the health industry has traditionally been slow to modernise compared with many other sectors. The cost of modernisation, together with concerns over privacy laws and regulation, have been prohibitive to progress. Over the past ten years, however, a shift in attitude and the easing of regulation has allowed the floodgates of health tech to open. Healthcare professionals and patients alike have grown increasingly expectant that the industry join the tech revolution and it could no longer afford to be left behind.

The Covid-19 pandemic has forced the shift towards reliance on health tech to accelerate. Patients unable or reluctant to leave home have become dependent on accessing healthcare without stepping foot in a surgery or hospital. It has become necessary for healthcare professionals to access and share information quickly and efficiently, and for a broader group of healthcare workers to have immediate access to this information. Health tech companies have been at the forefront of providing the products and services to support this shift.

Strong revenue streams, professional management teams and fast-paced product development has led to increasing investor appetite for companies well placed within the health tech sector.

The UK has cemented its position as a leading international hub for technology and innovation, with investment in the UK’s tech sector growing to £10 billion in 2019. Investors in London have a familiarity with and understanding of tech companies that lends itself well both to VCT investment and to equity fundraising. As the health industry gears up for further growth, it will be increasingly necessary for health tech companies to access sources of funding and broaden investor bases to keep up with the pace of growth. The London markets offer access to the deepest pool of international capital in the world, underpinned by proven levels of sustained liquidity. For many health tech companies on the road to further growth and investigating sources of funding, now is the perfect time to start considering the route to listing in London.

For more information on the multiple routes to listing in London, please contact Robert Black in our Corporate Department at robert.black@memerycrystal.com