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The Healthcare technology sector has experienced significant growth from venture capitalists, corporate venture capitalists and private equity investors.
Although the COVID-19 pandemic created unprecedented levels of concern for the healthcare sector, the accelerated emergence of health technology has been able to transform the industry sooner than expected. The reliance on virtual care delivery coupled with an increased focus on well-being and mental health, has forced many existing healthcare practices to change tack. The movement towards upgrading data and technology systems has rapidly increased the value of the industry and thus the eagerness for funding from financial businesses.
There have been a few common themes identified by analysts following the rapid advancement of interest and value in the health tech sector. The vast majority of which are expecting a constant flow of capital targeted at health technology businesses instead of a mere bubble. Health tech has started to reinvent the traditional healthcare systems all over the globe and therefore is expected to play an ever more significant role in the years to come. Increased exposure to the technology systems within health will only increase the reliance on technology and therefore the desire to increase efficiency, reduce costs and reinvest in the sector.
Another seemingly vital component of the healthcare technology sector has been the consumer- focused health tech companies which have enjoyed the greatest of success of them all. The effects of the COVID-19 pandemic within healthcare have varied significantly, with hospital-focused surgeries and treatments being postponed but efficient, virtual delivery of care increasing to significant levels. This has allowed for the advancement of health tech which continue to close the gap between healthcare that is needed now and what will be needed in the future.
The sustained growth that has been projected by analysts has typically been subject to the levels of Venture Capital funding. In the US, venture funding reached $14billion in 2020, almost a doubling of the levels in 2019.
A recent analysis by Deloitte confirms that CVC’s forecast the post pandemic era as the start of an undefined term of opportunity for health tech companies.
However, all is not solely encouraging within the industry. Health tech provides newfound dilemmas such as finding a balance between virtual and face-to-face healthcare. Additionally, replacing old systems with modern, data driven solutions isn’t an immediate process. The transferrable nature of health tech to different countries with alternative healthcare systems is not as straightforward as it may seem. Israel, for example, has been highlighted as a major focus point for health tech innovation, with many US firms seeking to export IP back to their domestic markets. There can be issues with solving health issues in differing health care markets and so a strong emphasis placed on local infrastructure, capital efficiency and talent quality has the potential to undermine the technology that may prove to be more domestically focused.
Technology’s growing presence in the industry remains a force for good, promising more efficient patient analysis systems and higher revenues for healthcare businesses. A key target for healthcare tech will be creating a medium that can provide adequate care in an open yet secured data platform. Traditum remains committed to the Technology sector and recognises the importance that new and emerging technologies will have on the healthcare system. With investments focusing on enhanced patient care and simplifying access to it, there are some very exciting developments on the horizon.