in 2023 investment in European start-ups fell by 36%

3.08 billion euros: this is the amount raised by European start-ups in the e-health sector (digital health) in 2023, which is 36% less than in 2022. The figure was revealed by the French multi-stage investment company Karista, which published its fourth European map of digital health funds on April 2. Investments in French start-ups, representing almost a third of the European amount (almost €1 billion), are 40% lower compared to 2022, but more important than the €577 million raised in 2021.

Average ticket divided by 2

In addition, the average fundraising ticket was split between €2 and €10.1 million, compared to €20 million in 2022. Valuations of eHealth start-ups also returned to levels seen before the Covid-19 pandemic.

Despite the overall decrease in funding, Karista is seeing some positive signs with a very slight increase in closed transactions (306, 301 in 2022). There are now more than 3,000 companies specializing in eHealth in Europe, a number that has tripled in the past three years.

Karista also observes an increase in funds that have invested in European eHealth (in three different companies), numbering 217, or 29% more than in 2022. Of these 217 funds, 49 are French. Almost 6 out of 10 funds invest in the early stage, while the share of multi-stage investors is 30%. 12 companies are investing in the late stage, including 2 French companies (Eurazeo and Quadrille Capital).

France in first place in European funds

France maintains the top spot in European funds investing in eHealth (24%), closely followed by the UK (21%) and Germany (18%). The study also points to a boom in “super investors”, with investments in more than 10 companies: 55 were identified, i.e. 44% more than the previous year.

Two sectors stand out in eHealth this year: on the one hand, robotic surgery with two fundraisings exceeding 100 million euros (CMR Surgical and DistalMotion). On the other hand, pharmatech, whether in investments or collaborations (Aqemia, Owkin).

The venture capitalist says he is confident about the future: “After an intensive start-up phase, we are entering a growth phase (…) which should lead to more mature companies seeking funding.”

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