2022 European Active Digital Health Funds Mapping by Karista
Our 2022 European Digital Health Funds Mapping is out!
European digital health start-ups raised nearly €4.23bn in 2021 (including €577m in France), nearly three times the €1.45bn invested in 2020. 259 deals were closed. We count 626 companies active in digital health across Europe today. 63% of them were created in the last 5 years.
In light of the rapid growth of the European digital health sector over the past three years, Karista has published its second edition of the European mapping of digital health funds (known as "e-health"). This is a unique mapping in Europe and it will be updated over the months.
Our goal is to be fully exhaustive, but we may have omitted some players. If you want to inform us of any changes to be made, please fill in this form.
DEFINITIONS AND CRITERIAS
How do we define the Digital Health sector?
This sector brings together companies belonging to the field of health in its broadest meaning (going fromprevention/wellness to digital therapy) and which developed software or digital technology as a differentiating factor.
We included in this mapping all the funds with a global headquarter in France, Germany, Spain, Italy, United Kingdom, Netherlands, Austria, Luxembourg and Belgium.
Based on public information (websites), we selected all the funds that invested (at least) in 3 companies belonging to the Digital Health sector in Europe.
“Late stage” refers to B and following series.
This year, the Corporate fund category prevails on the others.
The digital health investment sector is accelerating its development in 2021 in Europe and around the world. Overall, in Europe, deal sizes have increased (reaching an average of €17m) with valuations rising as a result of the greater maturity of companies, the growing influx of capital into this market and the excitement around the sector since the COVID crisis.
In 2022, 143 funds having invested in European e-health (at least in 3 companies up until Q1 2022) are included in the mapping, compared to 89 in 2021. This considerable increase (+61%) is driven by French investors: there are 17 new funds (+63% compared to 2021), while funds in the rest of Europe increased by 37 (+64%). The number of US funds investing in Europe remains constant (+0%; 4 VCs). European dedicated funds have increased to 22 (+57%). The early stage category is the one that is increasing the most.
57% of active digital health funds invest in early stage, i.e. 79 funds. The majority of new funds - thus joining the 2022 mapping - are themselves early stage: 30 new early stage funds between 2021 and 2022 (+61%), i.e. 56% of new funds. The vast majority of companies in the digital health sector remain very young, which explains the investment focus of these funds. The fastest growing category is multi-stage: +68% with 17 new funds in this category. A new category has entered our mapping: Family Offices, which are very active investors, numbering 7, including 4 French ones. Investment of Family Offices being often undisclosed, we only mapped those announced in deals.
In terms of locations, the main trio of countries remains compared to last year: France (32%) / UK (23%) / Germany (20%) in terms of number of funds. However, the UK is the leading country in terms of number of deals and amounts invested (€1,96bn). The mega-turnovers therefore remain Anglo-Saxon, despite 2 mega-turnovers in France in 2021.
Noteworthy fact in 2022: Belgium and the Netherlands are showing a lot of interest in the digital health field. The number of Dutch e-health funds has tripled between 2021 and 2022! While France maintains its representation in Europe between 2021 and 2022, the United Kingdom and Germany lose a few points to Switzerland, the Netherlands and Austria.